Reducing The Stress Around Employee Terminations

One of the more difficult employee issues businesses deal with is terminating an employee. These can be particularly challenging in small businesses because the employees tend to work more closely together and an underperforming employee can have a real impact on company performance. At Insource Services, we are often asked to assist our clients with these matters and although it can be difficult, we enjoy the challenge of working through the transition to ultimately set the company up for maximum productivity. It is always difficult to terminate someone’s employment. If this action is necessary, the best way to proceed is to focus on how to make the process as respectful and professional as you can for the departing employee. When you do this well, it can protect you from legal exposure and help you accomplish what will ultimately be best for both parties.

Cover Your Legal Bases

Most companies focus exclusively on this critically important step, but you need to remember that this is a baseline requirement. If you are a Massachusetts employer, be sure you follow the proper protocol:

• Pay the employee all wages owed (accrued vacation time, expenses, final pay, etc.) through the date of termination.
• Give the employee a compliant termination package that includes a COBRA notice, unemployment information and other useful benefit transition information.
• Coordinate with security and IT to shut off computer and building access while tactfully explaining that this is standard procedure so the employee isn’t unnecessarily offended.

Eliminate The Need For Fire Drills

Unless there is an egregious breach such as a theft or violence, give yourself enough time to get your compliance steps in order. Occasionally we will release someone from service but make their actual termination date coincide with the payroll period to simplify the check cutting process and provide a little breathing room on the final paperwork. In most case, all benefits terminate on the official date of termination, not the release date. However, if you think the employee poses a risk to the company in some way, we suggest that you immediately sever all ties.

Good Cop, Bad Cop

We recommend two participants in the termination meeting. The manager is not always the best person to do all of the talking. This person can pose risks to the process because they may not feel comfortable, may say too much in an effort to rationalize the decision, or be too emotionally invested in the specifics of the situation. The goal is to say as little as possible. The manager should simply state the decision has been made and briefly explain why. Most departing employees do not want to hear much more than that. The HR person should immediately step in to review the specific logistical details. In our experience, this person can shift the focus and often de-escalate the situation by taking the focus off the manager/employee dynamic.

Remember The Person

Unless the employee has done something horrible to your company, it helps to remember that while this person may not be a good fit, they still should be treated respectfully. Allow them to save face and leave on as good of terms as possible. The goal is for them to leave, not beat them up on the way out or have you get sued because they leave angry. They will resurface as a future client, your daughter’s new boyfriend or somewhere else you would least expect. And it’s the right thing to do.

We have used the above tips when assisting clients with this difficult matter and hope they can help you make a challenging situation a bit easier.

We Can Help

Insource’s HR consultants are professionals with industry-specific knowledge and experience who can help guide you through the termination process. We offer general HR management services and these services are billed hourly so you can work with us as much or as little as you need. We talk with you about your business needs and challenges and can work with you to evaluate personnel policies and practices that may create risk for your company.

Our unique business model allows us to work with you on an as-needed basis when issues like this arise, saving you and your staff valuable time and money and helping you manage your business risks. For more information, please contact me at 781-374-5103 or Sharon Stone, Insource’s Director of Business Development at 781-374-5109.

P.S. Do you have a follow-up question about termination? Or a general HR question? Email me your questions at swalsh@insourceservices.com and I’ll answer one in next month’s brand new column “Dear HR Director.”