The proper route to firing an employee
San Francisco Business Times
Problem: No matter how hard you have tried to work things out with an employee, "unreconcilable differences" make it absolutely necessary for you to terminate him.
Diagnosis: A company that hires the right people and manages them properly does little firing, but releasing your mistakes is inevitable.
Prescription: Never take a dismissal lightly. Remember that the individual you let go probably has friends among the other employees, among your suppliers, among your customers and even among your competitors.
• "Preventive medicine" may help you to avoid subsequent dismissals. Let your employees know what you expect of them before a misunderstanding occurs.
• Create an early-warning system, such as an annual performance appraisal, to alert you when things as not going well.
• If you uncover something wrong and find a way to fix it, you may possibly eliminate the need to terminate an employee.
• Include the employee when analyzing the problem. Let him evaluate himself. If he acknowledges the problem, you are one step closer to resolving it. If he denies it, you have additional ammunition if it becomes necessary to terminate him -- and for supporting your action if he should decide to sue.
If a termination is unavoidable, document every action carefully. Be very specific, both in your conversations and in your memos. Describe specific instances that have led up to the dismissal; don't generalize. See that the employee receives a copy of every memo that goes into his personnel file.
Act quickly. Once a decision to terminate has been reached, don't procrastinate. Be sure to follow all of the company policies to preclude legal action.
Make a check-list of points to discuss with the employee during an exit interview. Be candid about the reason for his termination, and have someone else present to witness what was said and the employee's reaction to it.
Major topics to discuss during the exit interview should include:
• Will the employee receive severance pay? Assistance in hunting for a job? Good references?
• How long will his company health insurance benefits last? What will they cost? Are they convertible?
• Will the employee be eligible for unemployment benefits?
• During the exit interview, collect any company property that the employee may have, such as keys to the office.
Small Business Troubleshooter is written by speaker and consultant Roger Fritz, author of 27 business books. Fax inquiries to Roger Fritz c/o S.F. Business Times, (415) 398-1895, or e-mail to sanfrancisco@amcity.com, or call (708 ) 420-7673.
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