"Bob, can I talk to you in my office?"
While terminating employees is one of the more unpleasant tasks that owners and managers have to carry out, it is a necessary part of doing business.If you're not careful, however, mistakes committed during the firing process can come back to haunt you by way of legal action. Learn the most common mistakes made when giving workers the boot.
1. Failing to Have a Signed Employment Agreement or Offer Letter
It's always to your advantage to have an agreement stating that the employee understands the hiring terms and the "at-will" nature of employment, meaning either the employer or the employee can terminate the employement releationship at any time.
2. Not Putting Standard Policies in Writing
Whether it's in the form of an official handbook or several pages stapled together, you should have clear policies in place so that employees know exactly what is and is not expected of them while employed.
3. Not Having Proper Appraisal Documentation
If someone is performing poorly or there is any indication that you may need to terminate an employee, you should keep records of warnings or discussions regarding poor performance or failure to abide by company policies. You will want documentation in the event the employee takes legal action after being terminated.
4. Not Having a Legitimate Job-Related Reason
In many states, you do not have to provide a reason for firing someone. However, whether you share it with the employee or not, you should always have a legitimate reason for terminating someone if you do not want to get hit with a discrimination lawsuit.
5. Failing to Prepare for Termination
Know what you're going to say, and have all paperwork prepared ahead of time. If there is severance pay or anything else owed to the employee, such as vacation pay, you should have a check ready to give them.In addition, you need to be knowledgeable about state and company policies. If you are unsure, read up on them in advance, or even call the state unemployment office for clarification.
6. Taking Too Long
If you are planning to terminate someone and continue to wait for the right time, you can run into several problems.First, the employee may get wind of the situation and become disruptive, slack off completely, or begin to set up a lawsuit situation. Second, other people in the department may become aware that something is up, and morale will drop quickly. Therefore if the decision has been made, act promptly.
7. Not Having a Follow-Up Plan
Terminating someone may be the best way to solve a problem, but the work they were responsible for will still need to be done. Be prepared to address your next course of action, which may be dividing the job among other employees, hiring someone new, or outsourcing the work.
8. Talking Too Much
Too often employers talk too much and say the wrong thing. Don't make promises you can't keep, such as offering to help the employee find another job, and don't make excuses or pass the blame.Keep the conversation to a few minutes, and stick to the matter at hand. There's nothing wrong with saying that you are sorry, but be careful regarding anything else you say.
9. Letting the Word Get Out
A slip of the tongue can be a big mistake. Nobody else should know about the impending termination except those involved in the decision-making process. The individual being terminated deserves to be treated with respect and dignity, and not be embarrassed because everyone in the company knows they are being terminated.
10. Arguing
A common mistake is getting into an argument with the employee being terminated. You should not let this happen. If they are angry, let them vent. You can only lose if you start arguing back.If you suspect that the employee could potentially cause a scene during your meeting, you may want to have another person in the room with you -- either a senior member of your staff or perhaps even a security guard.
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