Tuesday, May 22, 2012

Human Resources 10: Ending the Employment Relationship

Clearing Out Their DeskThis continues our series explaining how human resource functions may affect your business. I thank Doctor Lori Wadsworth for this information. 

Sometimes a disciplinary action does not create the improvements you seek. You may need to end the employment relationship. Sometimes you need to lay workers off to reduce costs.

Terminating or firing an employee  never feels good. You will probably find it a gut wrenching experience.

Most Common Manager Errors

  • Withhold the real reasons for termination
  • Failing to follow written policies and procedures
  • Failure to document employee’s misconduct
  • Withholding payment of employee wages

Effective Practices for Layoffs

The following will improve your layoff experience:

  • Plan thoroughly to identify who you need to layoff and how you will do it
  • Address the needs of those who be laid off
    • Retraining
    • Emotional impact
    • Severance pay, if available
  • Behave professionally

Prepare for the Termination Meeting

Your preparation will reduce problems with the termination:

  • Keep it private
  • Have documented warnings ready if the person contests your reasons
  • Prepare the exit letter explaining the reasons for termination
  • Print the final paycheck to give them at the meeting
  • Choose the right place for privacy, neutrality, and authority
  • Identify who should be present at the meeting (at least two representing the company, you need a witness)

Conducting the Termination Meeting

A few tips for the meeting itself:

  • Ensure you have a person to witness what happens in the meeting
  • Be prompt
  • Present the situation in a clear, concise, and final manner
  • Listen to them and don’t argue
  • Be empathetic and caring, but not compromising (remember you already gave them a chance through the discipline process)
  • Get them out the door, with their belongings, quickly

Some employees make it worse with angry or emotional reactions. Coping with their reactions requires your tact, patience, and wisdom.

  • 42% involved screaming matches
  • 24% sent negative mass emails on their way out
  • 12% vandalized or stole company property
  • 4% involved in physical violence
  • 52% of people who quit do so because a co-worker was fired or quit

Thursday we will discuss the impact of employment-at-will on your business

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