The Executive Guide to Firing, Laying Off, and Terminating Employees

Letting go of any employee isn't easy for either of you. Whether you call it firing, restructuring,reorganization, downsizing, laying off, or "early retirement", it's still termination ... and you're the terminator.

Layoffs are generally the easiest to handle. The reason is usually pretty cut and dry like ,"business is slow", "we're losing a fortune" or "the CEO ordered staff reductions of 20% across the board.". There are always plenty of scapegoats to blame too ... the economy, the CEO, the board of directors, or the multi-million dollar client who pulled out their business.

The process becomes far more complicated when the termination involves employee performance issues or is based on business decisions that appear "arbitrary" to the terminated employee.

Regardless of the circumstances surrounding the termination, here are some guidelines to follow that will help make the process less traumatic for all involved

Be Compassionate and Understanding

Always remember that by firing this individual, you're creating a tremendous negative impact the income, lifestyle and the future of the employee and his or her family. Put yourself in their shoes and try to be as understanding as possible without coming across as fake.

Don't Ruin The Weekend

Firing anyone on a Friday ruins your weekend and theirs. Pick any other day of the week but Friday.

Clearly State The Reasons For Termination

Make sure the employee clearly understands your reason for terminating his or her employment. Specifically state a reason such as "your department is being eliminated", "The company is cutting off 25% of staff", or "your performance is far below expectations". The employee's family, unemployment, headhunters and future employers will want to know the reason, so the employee needs to know the truth

Document Performance Problems

If poor performance is involved, be sure to document your decisions with specific instances, facts and figures. Review these carefully with the employee during the termination meeting. You need to do everything possible to protect yourself and the company from "wrongful termination" suits.

Discuss Recommendations

Be honest with the employee and let them know if you will give them a good recommendation or not. If you plan to give the employee a recommendation,it's a good idea to have a letter already prepared so he or she can use it as part of their new job searc.

Be Very Specific Concerning Benefits and The Terms of Separation

Clearly outline the specifics regarding severance pay, dates benefits end, Health insurance and COBRA, pensions, retirement plans and other issues. If you don't have the facts, don't wing it, have Human Resources or some knowledgeable party meet with the employee to go over these issues.

Never Burn Bridges

Keep all doors and lines of communications open. You never know when you could be working with the terminated employee again ... or even being interviewed by them for a new job.