Firing an employee is a drag--every boss hates doing it--but the
tough pill to swallow is that the day will come when you'll
have to play Terminator. Why? Sometimes a new company direction
means it's time to part with some current staff. Other times an
employee just gets into a slump and needs a new direction. But the
terrible news is that all this is more unpleasant-even painful-in a
start-up because chances are, you'll be firing a friend.
Ouch! For starters, though, know this: Oftentimes, the best
thing an employer can do is release an employee from a situation
that's not working for either of them, and that will be even
more true when the firing is done in a way that lets the employee
save face. But fire an employee badly, and you'll be leaving
yourself open to a possible lawsuit for wrongful termination or
defamation. Do it really badly, and he could go postal on the 5
o'clock news. The good news is, there are plentiful resources
out there to help you do the deed right.
Is firing the only option? Find out with a quick quiz put
up by the Small Business Administration (www.sba.gov/gopher/Business-Development/Success-Series/Vol2/Find/find19.txt).
Many times, an employee's work may be lackluster because the
job description is too vague, or the job's too challenging or
not challenging enough. If a worker is having personal problems,
it's to your benefit to give the employee a few months to
refocus his or her priorities on the job.
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Do it right. OK, so when should you do it? Late Friday
used to be the preferred time to drop the bomb, but now experts
recommend doing it early in the week. Get more tips at www.businesstown.com/people/firing-howto.asp.
It's the law. Worried about the legal ramifications?
You should be. Wrongful termination suits can kill a small
business, so research what you need to do (and not do) by dropping
into these Web sites:
Employment lawyers charge big bucks for their advice, but on the
Web, you can often get it for free (www.mpows.com/index3html?/publications/firing.html~body).
Case in point: "Terminating Employees: Survival
Techniques," an eight-step guide to sidestepping lawsuits
written by Wichita, Kansas, employment lawyers Martin, Pringle,
Oliver, Wallace & Swartz LLP. Much of the advice is basic
(document your actions, follow your company's policy manual and
so forth), but many companies find themselves in big trouble
because they didn't do the obvious. And some of the advice here
might surprise you. For instance: Don't dump ex-employees'
personnel files; they might take years to sue you.
State laws are a crazy quilt, with each state offering employees
specific sets of protections. There are plenty of ways to run afoul
of state laws. From genetic tests to unionizing to safety
complaints, each state individually defines reasons for letting
someone go. Find out the important ones by surfing csi.toolkit.cch.com/text/P05_8120.asp.
Guess what? You can be sued for not firing a worker who's a
probable threat to co-workers. Courts have ruled that if you know
an employee is a maniac, you can be found negligent for not
protecting your people. Get the scoop at http://toolkit.netscape.com/text/P05_8190.btq.
Going postal. It happens: Sometimes a terminated worker
goes nuts. But the bigger, more common risk is that this
ex-employee will proceed to bad-mouth you all over town-unless you
take steps to part on the best possible terms. How? Learn this art
by absorbing "Taking Away Their Job? Leave Them With
Pride," a well-documented article on how to take away a
person's job but not their dignity. You'll find it at
www.amcity.com/dayton/stories/1998/10/12/focus2.html
Brain Food
Before calling in that employee for a final chat, settle down
with a good book, such as Alan S. Horowitz's The Unofficial
Guide to Hiring and Firing People (IDG Books Worldwide, $15.95,
800-434-2086). This easy-to-understand guide explains the legal
issues involved with firing and how to do it without incurring
lawsuits or bad press.
Robert McGarvey and Babs S. Harrison avoid being fired by
being self-employed in the San Franciso Bay area.