At some point, most business owners face the difficult task of terminating an employee. It’s one of the hardest responsibilities you may encounter as an employer, as it directly impacts someone’s livelihood and can create significant personal challenges for them. However, when an employee is detrimental to your team or organization, termination may be necessary to preserve the well-being and performance of your business. This article discusses key considerations and best practices for terminating an “at-will” employee—someone who does not have a contract guaranteeing employment for a specified period.
Before You Terminate: Provide Feedback and Set Clear Expectations
Evaluate Prior Feedback: Reflect on any prior discussions with the employee. If previous feedback was primarily positive, ensure you have clearly communicated your concerns about their performance or behavior.
Provide an Opportunity for Improvement: Consider sitting down with the employee to discuss specific issues and set measurable goals for improvement. Give them a reasonable timeframe to address the concerns while making it clear that failure to improve will lead to termination.
Document the Conversation: Immediately after discussing performance issues, create a memo detailing the conversation, including expectations and potential consequences.
Assess the Impact of Their Behavior
If an employee’s behavior is toxic or disruptive to your workplace culture, swift action may be necessary. “Cancerous” attitudes or actions can spread negativity among your team and harm overall morale. In such cases, it’s often best to address the situation promptly.
During the Termination Meeting
When it’s time to terminate an employee, handle the meeting professionally and with empathy. Here are practical steps to follow:
State the Decision Clearly: Inform the employee of their termination and specify the last day of employment.
Explain the Cause: If the termination is due to performance issues, refer to prior discussions or reviews that outlined the need for improvement. Be factual and avoid personal criticisms.
Discuss Severance and Benefits: Outline any severance pay or post-employment benefits they will receive, if applicable.
Provide a Release Form: For employees in protected classes (e.g., age, gender, race), consider asking them to sign a release of liability. Have this document drafted by a legal professional to ensure compliance with applicable laws. Offer additional severance or benefits as an incentive for signing.
Collect Company Property: Present a checklist of items to be returned, such as keys, access cards, and electronic devices.
Consider Additional Steps
Exit Interview: Use a formal questionnaire to gain insights into potential improvements in your organization.
Secure Company Assets: Change access credentials and passwords immediately, preferably during the termination meeting.
Escort Them Out: Unless there’s a compelling reason for the employee to stay longer, escort them out of the office after they’ve returned company property and collected personal items.
After the Termination
Communicate with Your Team: Inform your remaining employees that the individual is no longer with the company. Keep details confidential but reassign duties and address any concerns to prevent misinformation or speculation.
Protect Workplace Morale: Address the team in a way that reinforces your commitment to maintaining a productive and positive environment.
Why Delaying Termination is Harmful
Delaying the decision to terminate an underperforming or toxic employee can have a ripple effect on your business. It allows harmful behavior to persist and sends a message to other employees that similar behavior might be tolerated. Acting decisively demonstrates strong leadership and a commitment to your team’s success.
Firing an employee is never easy, and it should always be approached with careful thought and consideration. Following the steps outlined above can help you navigate this challenging process professionally and with integrity. While it may be a tough decision, addressing the issue promptly is often the best course of action for your business and team.
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TITAN Business Development Group, LLC
business coaching | advisory | exit planning
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