The Right Way to Terminate an Employee

Terminating an employee is unlikely to be the favorite part of anyone's job, but unfortunately, it is also necessary from time to time. Whether you work in human resources or as a direct supervisor, it is important to follow proper procedures to make the process as smooth as possible. Focus on the following four broad areas to make the best of a difficult situation.

Performance Evaluation and Retraining

Terminating an employee results in real costs for your company, including the direct cost of hiring and training someone new and the possible costs related to any lawsuit associated with the action. For this reason, it is important to work to maintain current employees if at all possible. When dealing with a difficult employee, use a combination of performance evaluations and retraining sessions in an attempt to improve their performance before seriously considering termination. Make sure to document every action to create a paper trail that shows the company made every effort to help the employee before resorting to termination.

Documentation

Documentation is also important when terminating an employee for a reason other than poor performance. If the employee violated a serious rule or there was a serious ethics breach, document everything about the situation. Include statements from witnesses if at all possible. If an employee is being let go because of downsizing or reorganization, document the statistics that led to selecting this particular person for termination. This type of documentation protects your company from wrongful-termination lawsuits by showing exactly why a termination was necessary.

The Meeting

Terminating an employee should always take place in person. Prepare for the meeting by getting your paperwork in order and practicing what you are going to say ahead of time. Never display anger when terminating an employee, and always approach the person with an air of empathy, working to preserve his dignity. Remember that the employee likely has many friends and family members who are your potential customers. You want to reduce ill feelings so that your company's reputation does not suffer.

Be straightforward in your manner, and simply list the facts. Work to diffuse any anger or frustrations that the employee feels. Be prepared to answer questions. Remember that everything you say could influence the likelihood of a future lawsuit as well as the results of a lawsuit. Limit your remarks to the truth, and if you are uncertain of anything, verify your information with human resources before answering.

Transition

After the big announcement, it is important to make sure all the details of the termination are worked out before the employee leaves. Have the employee turn in his keys, phone and anything else that belongs to the company. While he is in your office, revoke passwords and other permissions to ensure a clean break. Provide the employee with written documents specifying the exact reason for the termination, any continuing benefits and applicable nondisclosure agreements. Have the employee sign all necessary paperwork before he leaves.

Terminating an employee doesn't have to be a harrowing experience. Have your facts ready, and show your empathy to smooth the process. Remember that many people get fired at some point in their careers. By showing your professionalism, you can minimize everyone's discomfort during the termination process.

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