Firing

The Right Way to Fire an Employee

The Right Way to Fire an Employee
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Terminating an employee is a big decision and never easy for either party.

Related: 10 Questions to Ask When Firing an Employee

Before deciding to fire your employee, we suggest the following:

1. Make sure that you gave the employee the opportunity to succeed. Ask yourself:

  • Did I carefully and specifically explain my expectations to the employee and check that the expectations were understood?
  • Did I remove any roadblocks, internal to the company, which might have kept the employee from succeeding?
  • Did I give the employee sufficient training and enough time to acquire and practice necessary skills?
  • Did I motivate the employee to succeed including giving positive and negative feedback as appropriate?

If you can answer yes to these questions and the employee is still underperforming, it may be time to make a change. 

2. Protect your organization.

Many states are “at will.” This means that you can terminate an employee for any reason or no reason at all that is not in violation of state or federal statute. If you are not sure, speak to a qualified attorney or HR specialist. 

While there are no actions that will guarantee that your unemployment tax rate won’t increase or that you will not suffer a lawsuit, you can help to protect your organization from these costs by documenting the events leading up to termination. List facts ("Suzie arrived more than 10 minutes late to work on the following dates." "Suzie did not turn in her weekly sales report on the following weeks.") not conclusions ("Suzie did not care about her job."). Make sure to reference any incidents of work rule or company policy violations.

Related: The Critical Lesson of Letting Bad Employees Go

3. Handle the actual termination efficiently and respectfully.

If you have gotten this far, you have made the decision to end the employment relationship. You have thought deeply about the decision, investigated any incidents, if appropriate, and produced the documentation. Here are a few suggestions to make the meeting as pain-free as possible.

  • Hold the meeting at the beginning or end of the day. Arrange a time when few coworkers are present. Hold the meeting in a private place. If possible, hold the meeting where coworkers cannot see or hear the employee during the termination. However, this does not mean having the meeting in a public place such as a coffee shop or restaurant.
  • Notify your IT personnel, giving them enough time to disconnect the terminated employee’s access to your systems.
  • Explain your decision to the employee. Do not go into excessive detail. Do not get into an argument with the employee. 
  • Have the employee return any company property including keys and swipe cards.
  • Give the terminated employee any documentation they will need to continue their benefits (if appropriate).
  • Allow the employee to gather personal possessions. A manager, HR professional or the business owner should stay with the employee during this time. Don’t let the employee access the computer, take company documents, throw things away or attempt to clean up the desk. 

While the process is never easy, sometimes it is necessary. Many small-business people are reticent to terminate employees. This is understandable. Employees can feel almost like family, and in small businesses, they are often friends or family members.

While we have frequently heard business owners lament, “I should have fired Suzie months ago,” we have never heard one say, “I terminated Suzie too quickly. I should have given her a few more months before letting her go.”

If you need to terminate an underperforming employee, follow the steps above to make the process flow as smoothly as possible.

Related: How to Fire an Employee So You Don't Get Sued