Whether you’re a first-time manager or you’ve headed companies for years, you’ll find that hiring and firing employees is part of the reality of running a business. While hiring new candidates tends to be a positive experience, letting employees go can be challenging, even for the most seasoned managers. Learn when and how to fire an employee, and find out how to do so with compassion.
Before delivering any pink slips, however, think over your decision carefully. Firing an employee isn’t something you should do in haste, since making a snap judgment can create legal problems and corporate culture issues down the road. You should always make sure you understand your area’s laws surrounding employee dismissal.
Most companies let employees go for a range of performance problems and disciplinary issues. The following are some of the most common reasons for firing an employee:
- Misconduct: Lying, theft, and deceit are some of the most clear-cut reasons to fire employees. Those caught doing any of these actions break the company’s trust and may never have the chance or ability to regain it.
- Ethical issues: Some bad behavior isn’t quite so clear-cut but still prompts adverse action. If your employees fail to abide by your business’s code of conduct, harass co-workers, or spend company money irresponsibly, termination may be necessary.
- Incompetence: Most companies have probation periods or on-the-job training sessions during which new employees actively learn how to do their jobs. Some may need additional practice and coaching to do a flawless job, but most employees get the hang of things after a while. Those who don’t may be incompetent or simply not equipped to do their jobs.
- Underperformance: Every employee should have measurable goals to achieve on a defined timeline. Those who fail to meet those objectives underperform, selling both themselves and your business short. Employees who underperform once may deserve a second chance, but those who do so repeatedly are often good candidates for dismissal.
- Lack of motivation: Staying on task and being motivated is often easy for new employees or during exciting times for your company. But what about when the going gets tough or the work becomes mundane for a while? Employees who lose their drive could force your company to falter when the next challenge presents itself.
- Failure to meet commitments: Most employees mean well, whether they intend to arrive at work on time or they strive to complete a project by the deadline. However, not all can execute on those commitments every time. Employees who repeatedly arrive late or rarely make project deadlines only create more work for the rest of the team, which will continue to have negative consequences.
- Inability to adapt: All businesses grow and change, and startups tend to do so at a much faster rate than normal. Employees must have the ability to change and evolve as the company does. Those who are unable to adapt or can’t seem to maintain their original pace may not be the right fit for your fast-moving business.
- Poor cultural fit: Corporate culture and work environment are big issues, especially for startups. Employees who don’t fit in at your company risk more than just rubbing other employees the wrong way. They could hold your company back and prevent you from meeting major objectives.
- Downsizing: Companies rarely want to let employees go en masse, but sometimes it’s necessary. Financial struggles, restructuring, and mergers may all turn layoffs into a reality.
While there are many legitimate reasons to terminate employees, there are also plenty of restrictions that prevent you from firing members of your team. Keep in mind that U.S. federal employment law prevents you from firing an employee for reporting corporate wrongdoing or for any of these reasons:
- Age
- Race
- Religion
- Sex
- National origin or ethnicity
- Disability
- Veteran status
Understand, too, that your state may have additional laws pertaining to employment. Don’t hesitate to consult an employment lawyer or a human resources expert to ensure you’re making the right move.
Firing an employee without being mean
Taking a harsh approach to firing an employee is rarely necessary and reflects poorly on you and your business. Follow these steps to terminate an employee without being mean, so you can part ways on good terms.
Give a fair warning
A termination is never a good surprise, so strive to give your employee a fair warning in advance of any major decision. If you truly believe the employee can improve motivation or performance, work together on an improvement plan with clear goals and steps.
Don’t put it off
Not every employee will make a solid attempt to remedy poor performance or meet established objectives, even after receiving a fair warning. Allow the agreed-upon time to pass, and take further action if you don’t see the required results. Putting off a termination because you’re nervous or you don’t want to jeopardize your employee’s career will only hurt your business in the long run. Poor performance can rub off on other employees and force your company to fall behind competitors.
Offer privacy
When you’re ready to have the termination conversation, make every attempt to do so behind closed doors. For instance, if your company operates out of a shared office space, don’t start the conversation in the common room or the social space. Instead, reserve a conference room where you can calmly and rationally deliver the news.
Have a witness in the room
Though giving the employee some privacy during a tense moment is a nice gesture, you should never fire someone alone. Even if you think you know the employee well, you don’t know what kind of reaction a termination will prompt.
Ask the employee’s direct supervisor, an HR representative, or even a member of your company’s legal counsel to be present. The witness can take notes to record the termination and assist if the conversation takes a potentially dangerous turn. Having a witness present can also protect you and your company if the terminated employee opts to sue for any reason.
Be straightforward and stay on target
Prolonging a termination is rarely a good idea and almost never makes for pleasant conversation. You may need to pause your delivery to let the employee react, but do your best to remain straightforward and stay on target. State the reasons for termination clearly. Don’t open it up for discussion, and don’t feel the need to talk more than is absolutely necessary.
Have evidence
Whether you’ve worked with the employee on a performance improvement plan or you’ve simply warned him or her about ethical lapses, you’ll need evidence to support your claims. Share your evidence, but try not to leave it up for discussion. It’s in your best interest to approach the conversation as though the termination has already been decided, so you don’t send mixed signals or provide the employee with false hope of a positive resolution.
Discuss options for moving forward
Even employees who expect to receive a termination notice may need some time to let reality sink in. Give your employee a minute or two before offering to answer questions and talking about next steps. Some employees may prefer to quit rather than endure involuntary termination, so allow them that option if it makes sense for your company.
Make the exit easy
Have the employee’s final paycheck, severance package, and any termination paperwork ready, so there’s no delay in processing these essential items. Have a plan in place for packing up the employee’s personal items and informing the team of this turn of events. The employee may want to handle this individually or may prefer for an HR representative or a supervisor to address it.
Be empathetic
Throughout this difficult conversation, strive to be empathetic. Though you’ll want to remain professional and straightforward, you can still give the conversation a personal touch. If the employee simply wasn’t a good fit for your company, you can offer connections with colleagues whose startups may be better fits. If the employee underperformed and showed no signs of improvement, you can still offer unemployment resources to help the person stay on his or her feet.
Conduct an exit interview
Replacing employees can be expensive, so it’s in your best interest to find out what went wrong. Ask the employee to complete an in-person or paper exit interview before leaving to provide closure for you both.
You may never enjoy reprimanding or firing employees. When you follow these guidelines, however, you’ll terminate employees in good conscience and for the benefit of your business.