Letting an employee go can be an uncomfortable and emotional experience. While no one enjoys the process of firing an employee, circumstances arise where it needs to be done. Proper offboarding is a necessity for any organization to be compliant and demonstrate compassion.
Organizations fire employees for any number of reasons. Regardless of the cause, firing must be handled with the utmost professionalism for the sake of the employee and the organization. The improper firing of an employee sometimes leads to severe consequences, the most serious of which include costly legal issues.
To ensure employee offboarding is done by the book, consider this 10-step guide on how to fire an employee the right way.
What are the reasons to terminate an employee?
Every offboarding decision needs a demonstratable justification. Otherwise, employers leave themselves vulnerable to legal actions like wrongful termination suits. To ensure employers have set precedents for their decisions, here are common examples of why an employee might be let go.
Termination for behavior
Everyone deserves to feel comfortable in their work environment. Any disruptive behavior affecting the workplace is grounds for termination in an at-will employment contract.
Attendance or chronic tardiness issues
An organization depends on the accountability of its workforce; people need to show up on time and ready to fulfill their roles. Chronic absences or tardiness are the clearest sign of an employee’s lack of accountability. If employees aren’t willing to be consistent with attendance, employers have the justification to fire employees.
Criminal behavior or theft
Criminal behavior of any kind simply is not tolerated in a work environment. No matter the degree, illegal activities like theft do not warrant a “strike two” and are grounds for immediate termination.
Violence or threats against employees
Violence—including the threat of violence—is not allowed in a work environment. Every employee deserves full confidence that they will never encounter violence in the workplace. If an employee even hints at violence, you must let that employee go immediately.
Sexual harassment
Everyone is protected from sexual harassment in the workplace by law. Therefore, every organization needs a zero-tolerance policy for sexual harassment in its employee handbook. If an employee engages in this behavior, the organization must fire them.
Company reorganization
Trends outside employers’ control influences organizations. Even now, layoffs are increasing due to the economic strains of higher interest rates and inflation. Companies need to reorganize as a result. When they do, they must onboard and offboard employees based on clear, justifiable pretenses.
Poor personality or attitude
Company culture profoundly affects the workplace. Employees with poor personalities or bad attitudes contribute to a toxic workplace, bringing their team members down. When firing based on toxic attitudes, employers use clear, demonstrable examples of negative behavior at the ready when the decision is made.
On-the-clock drug or alcohol use
Substance use at work is a significant offense. Not only does it result in poor productivity and a toxic workplace, but intoxicated employees increase their risk of hurting themselves or others. Organizations do not tolerate this behavior; employees intoxicated on the clock are often fired on the spot.
Illegal reasons to fire an employee
Most reasons for employee termination are fairly clear; an employee is a flagrant liability in the workplace. However, when it comes to lay-offs, it is incumbent upon the employer to make it perfectly clear that their decisions are firmly grounded on a legal basis. There are legal justifications for layoffs, but there are also illegal reasons to fire an employee. Wrongful termination refers to firings that demonstrably indicate:
- Discrimination based on sex, race, religion, sexual orientation, or gender identity
- Retaliation for whistle-blowing activities or calling out discrimination or harassment
- Discrimination based on immigration status
- Violation of a written or oral contract
Because determining wrongful termination is so nebulous, employers are compelled to conduct their onboarding with due diligence. To ensure that employers are legally justified when offboarding an employee, consider these qualifying questions:
Is the employee unable to meet job performance expectations?
The clearest basis for legally justified dismissal is employee performance. If they are demonstrably falling below their expectations or exhibit a pattern of performance issues, employers have a reasonable justification for termination.
How long has the employee had deficient work performance?
Poor employee performance is contextualized in a watertight termination. Establish a clear pattern of performance issues over time to justify letting an employee go.
Have I documented and notified an employee of these problems and their poor performance?
Failing to notify an employee of performance declines that put their job at risk is a dereliction of management’s responsibilities. Withholding key information invites suspicion of nefarious motives. Keep clear documentation of interactions with poorly-performing employees approaching termination to stay above suspicion.
Has the employee been given proper time and clear guidelines for improvement?
When notified of their performance issues, give employees reasonable time and clear direction on correcting the course. Management must demonstrate they fulfilled their obligation to provide poor performers with an unmistakable path forward with a performance improvement plan. If they continue to fall below expectations, the employer establishes their blamelessness.
Key advantages (and disadvantages) of layoffs
Layoffs are a reality of corporate life. When assessing potential layoffs, it’s important to acknowledge the advantages and disadvantages they present for an organization so that decisions are made with a clear view.
| Advantages | Disadvantages |
|---|---|
| Layoffs free up capital in an organization’s budgets that organizations immediately use. | Improperly handled layoffs invite trouble; in the form of wrongful termination suits and/or damaged brand reputation. |
| A properly handled layoff establishes an organization’s professional reputation and leaves room for lasting relationships with the former employee. | Misplanned layoffs are detrimental to organizational performance. |
| Offboarding problem employees creates the opportunity to fill that position with more capable staff. | Filling a vacant position is a costly and time-consuming process. |
| Streamlining the workforce creates opportunities for growth in other areas. | Time and money invested into fired employees walk out with them. |
What you need to know before firing someone
Termination is serious; you should never carry it out half-heartedly or absent-mindedly. Firing someone has drastic consequences for both the employee and the organization. The termination process must be carried out with the due, thoughtful consideration demanded by its significance.
With that in mind, management and human resources need to grasp their offboarding decision completely. Account for these factors before firing an employee:
- The emotional impact the decision has on the employee
- Logistical considerations; how the organization accommodates the vacancy; capability to refill the role on a clear timeline
- The legal implications of the decision; the case for firing an employee is ironclad; the severance benefits reflect contractual obligations
How to terminate an employee: 10 steps and tips
1. Verify the reason for termination
When firing an employee, an employer must have a clear, justifiable reason, even for an at-will employee. Therefore, an organization’s first step is to verify their reason for termination and move forward from there.
2. Compile documentation of employee probation periods to fix their problems
As you decide when to fire an employee, compile documentation of their earnest efforts to give their employees opportunities to improve; it’s an essential component of an ironclad justification.
3. Follow your company policy on termination
No one conducting employee termination should be in the dark about protocol. Abiding by the organizational protocol on firing ensures that it is accomplished with unimpeachable accountability.
4. Take into account legal considerations
Every termination gives due consideration to potential ramifications under federal law. Reassess the employee contract and other legal contexts to ensure that the circumstances are not grounds for wrongful termination.
5. Consider all logistics beforehand
By deciding to terminate, employers create a vacancy even before the employee is fired. Accounting for the logistical ramifications of the termination before the termination is complete ensures fewer headaches afterward.
6. Schedule an interview
Select a time and place for an in-person interview with the employee, preferably in a respectable setting like a conference room. Employees deserve face-to-face conversation when they hear bad news, not a phone call.
7. Make HR your ally
Human resources is best equipped to handle or assist with employee termination. Working with HR closely lends added authority and capability throughout the process.
8. Keep it short
Being clear, upfront, and efficient when delivering the news to terminated or laid-off employees sets a professional tone while minimizing the potential for emotional distress.
9. Provide employees a framework for the offboarding process
Giving laid-off employees a path forward promotes a seamless transition while reducing the potential for grievance. Let employees know any unemployment benefits or extended company benefits they qualify for, when to expect their final paycheck, and options for severance packages.
10. Manage your emotions
Firing an employee is hard; it is an emotional experience for everyone involved. However, emotions don’t affect the professional air of the process. Managed emotions make for a more manageable experience for all.
5 things you shouldn’t do when terminating an employee
1. Avoid terminating without prior performance evaluations
Employers need to have a justifiable context for their decision to let an employee go. Conducting performance reviews to establish a verifiable deficiency is essential.
2. Don’t terminate an employee without a witness
For legal reasons, conduct employee terminations with a witness for added accountability. Their presence is worthwhile insurance against any claims of wrongful termination in the future.
3. Don’t fire an employee until you meet with them in person
Letting an employee go before an in-person meeting is a colossal blunder. Prevent any potential for emotional grievances or legal headaches by meeting with an employee before they’re officially let go. Only then is it acceptable to send a non-physical notice like a termination letter.
4. Don’t make the conversation too long
Beating around the bush won’t ease the process; it’s better not to waste the employee’s time. Be clear and courteous but keep things short when letting someone go.
5. Don’t wrap up the meeting on a negative note
Diffusing tensions is key to leaving a positive impression on the employee and the organization’s reputation. Find something positive to leave at the meeting’s end, like well-wishes for the future, enthusiasm for their prospects, and beyond.
Keeping a positive impression until the very end
Few occasions in the business world demand the unyielding professionalism called for when properly handling layoffs. Firing employees is hard. Looking for shortcuts to this unfortunate but necessary process will further hurt laid-off or terminated employees and put the organization’s reputation and brand at risk.
When circumstances arise where you need to let people go, managers represent their organization’s values by carrying themselves with the utmost civility and respect. It’s what terminated employees deserve.
To learn more about how to effectively and compassionately fire employees, read this Payscale article today!
