Exit Strategies
Here’s how to handle employee terminations professionally while minimizing your chances of being held liable.
Firing an employee is a trying task. Focusing on what’s best for the company, which often requires letting go of underachieving employees, is sometimes necessary for continued growth.
Here are a few issues to consider before terminating an employee, as well as how to deliver the bad news.
Update your employee handbook. Although this may seem like an obvious administrative step, some small businesses neglect to keep a current and comprehensive employee handbook after creating the first one, according to Coy Renick, president of The Renick Group, Inc., a professional recruiting and staffing agency in Roanoke, Va., and former president of Virginia’s Society for Human Resource Management State Council.
“There should be a list in your employee handbook that details any offenses that will result in immediate termination, and leave no room for discussion,” Renick says. “For example, if you’re caught stealing, fighting with a co-worker or in possession of drugs, no prior warning is required as long as the offense is clearly stated in the handbook.” Employment laws vary from state to state, so the specific requirements for termination may differ slightly depending on your business’s location.
Implement a three-strike system. When poor performance is the cause for possible termination, managers should follow the same three-step series for every employee in danger of losing his or her job, Renick says. And the greatest defense against potential litigation is thorough documentation.
According to Renick, the first step should be in the form of a verbal warning, which is then noted and kept in the employee’s file. If problems continue, the next step is to provide a written warning that specifies what actions led to the letter, which is then signed and dated by both the employee and supervisor.
The last step is to compose a final written warning, Renick says, which leaves no room for debate. “It should be crystal clear that this is the last step before losing his or her position.”
Don’t go it alone. If after taking all three documented steps it’s still necessary to terminate an employee, it’s important to do so authoritatively and quickly and to include only three people: the employee, his or her direct supervisor and the company’s director of human resources, Renick says. Not only does the HR director serve as a witness to the meeting, but because he or she is more proficient in the law, the HR director should be the one to deliver the news. If there isn’t an HR director on staff, there should still be two people in the room other than the employee being terminated.
“Getting fired can be a very emotional event,” Renick says. “Some people cry, some want to fight, so make sure someone else is there.”
He also says that the entire meeting shouldn’t last longer than two or three minutes, the terms of the termination should be non-negotiable, and the meeting should conclude with the employee’s immediate departure from the premises.
Protect company property. But before they leave, be sure to collect any company property from terminated employees, such as a keycard or company cell phone, and give them a chance to collect their personal items from their desk. But, Renick advises to not allow them to access their computer.
“If they need any personal files stored on their computer, just let them know that the IT department will save the files to a disc, which will be shipped to them at a later date.”
If a small business implements and consistently utilizes a thorough termination procedure such as this, the more empowered it will become to make difficult decisions based on what’s best for the company and not out of fear of litigation.
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