How to Fire Someone--Humanely
“You’re fired” are two of the most painful words in the English language, whether you are saying them or hearing them.
The former vice president of a textile company still winces when he remembers being fired, although it happened eight years ago.
“I was sitting at my desk and this guy came in and put two weeks’ pay on my desk. ‘We are making some changes around here,’ he said, and that was it,” recalled Ken, who asked that his full name not be used. “It was especially traumatic, because at the time, I was in my late 50s.”
He had been with the company nine years, but slowly his duties were given to others and he was excluded from decision-making. Although he was not shocked at what happened next, he was deeply hurt. “I wasn’t given a chance to undo or redo anything,” said Ken, who eventually started a successful service business.
“Firing someone is just as tough on the employer as it is on the employee,” said Charles Bearden, president of Executive Horizons, which counsels managers about how to fire employees and then helps the employees find new jobs.
He and other personnel experts said being fired is almost as stressful as a divorce or the death of a family member. Yet most employers desperately need better information about the right and wrong way to fire someone.
Although most small businesses cannot afford to pay consultants like Bearden a fee equaling at least 10% of the departing executive’s salary, his suggestions can benefit even the tiniest company. And firing can be particularly touchy for smaller companies where bosses and workers work side by side and where the termination of a key employee can jeopardize morale or even production.
“When the decision to fire someone has been made, the best thing is to get it taken care of,” advises Bearden. “Many times you are doing the person a disservice by waiting.”
Bearden meets with managers before they fire an employee, coaching them on what to say and actually writing a script for the painful meeting.
He suggests a 10- to 15-minute meeting beginning with the news that a decision has been made to terminate the employee and that the decision is irrevocable. Then, tell the employee that others on the management team agree with the decision and it is not open to debate.
“The discussion should be efficient, but as warm and dignified as possible,” said Bearden. The last few minutes should cover what the company is offering the departing employee in terms of severance pay, benefits and help with finding a new job. This list should also be provided in writing, because the employee will probably be in a state of shock and won’t remember most of what has been said.
“It’s very important for the person to know they are not being tossed out on the street with no support,” said Bearden, former national sales director for M&M;/Mars candy company.
Finally, Bearden suggests giving the fired employee time to collect his or her belongings, but not enough time for a long or emotional goodby.
Many more people lose jobs because of mergers, acquisitions and downturns in businesses rather than because they are not doing a good job, he said. And, in many cases, Bearden says employees are fired due to a personality conflict, rather than because they are unqualified to do the job.
“For the most part, the individual gets an equal or better position after they are fired,” said Bearden.
Bearden and others dealing with the ticklish subject of firing people have had their share of unsettling experiences.
“I had a woman threaten to send a gang after me and she knew where I lived,” said Joan Sheridan, a former human resources director for several companies. “Another woman said, ‘You can’t fire me,’ and sat in the president’s office all day long. He refused to see her and finally went out the back door.”
Sheridan, who works from her Chatsworth home as a lecturer and personnel consultant, said an employer’s goal should be to fire an employee without unnecessary pain or legal action.
And she believes that a successful termination begins with a successful hire. “First, protect yourself,” said Sheridan. “Don’t make any promises you can’t keep.”
She advises employers to prepare a written job description detailing exactly what is expected from the new employee, salary promised, benefits, etc. This document should be signed by both parties. Then, she suggests employers set up a brief, introductory period of a month or so, to make sure the person is well-suited to the job. If there are problems, consider a transfer or additional training.
But, if an employee just isn’t fitting in or doing the job properly, it is time to begin creating a “paper trail” to document why you fired him.
“You need to give him warnings, beginning with a verbal warning and a note in his or her personnel file,” said Sheridan. “If things don’t improve, follow that with one or two written warnings specifying the problems.”
The final step is to place the employee on 30 days probation, with a written warning that he is “subject to termination.”
Sheridan and Bearden differ on the best time of the week to fire someone. Sheridan suggests doing it late in the week so the employee has the support of friends or family members to help make it through the weekend.
Bearden recommends that clients terminate employees early in the week so they will have time to begin their recovery and launch into job search right away.
SBA Person of the Year
James I. Marvin, president and founder of Plastics Research Corp. in Santa Fe Springs, has been named small business person of the year by the Los Angeles district office of the Small Business Administration. Marvin started the company with four employees and $45,000 in 1973. Today, the company, which makes shipping containers, employs 144 and posted $11.6 million in sales last year. Marvin will be honored by the SBA at a luncheon next Friday at the Biltmore Hotel. . . . A few statistics have emerged to promote National Small Business Week, May 7-13. There are 19 million small businesses in America. They employ six out of every 10 people, account for the majority of new jobs and are able to bring new products out faster than larger companies, according to the National Federal of Independent Business, the nation’s largest small business advocacy group.
More than 1.3 million new small businesses were started in 1988, according to Entrepreneur magazine. Total annual sales of U.S. small businesses are $970 billion last year.
Small businesses bought 60% of all personal computers, 55% of all telephones, 60% of all fax machines and 63% of all copiers last year, according to Entrepreneur.
The Los Angeles Venture Assn. is featuring the top student business plans at its May 9 breakfast meeting. The meeting begins at 7:30 a.m. at the Valley Hilton, 15433 Ventura Blvd., Sherman Oaks. The fee is $25 for members and $35 for non-members. For reservations, send checks to: LAVA, 1341 Ocean Ave., Suite 129, Santa Monica, Calif. 90401. For information call: (213) 450-9544.
The Homebased Business Assn. is meeting May 9 at 6:30 p.m. at the Pasadena Chamber of Commerce, 117 E. Colorado Blvd., Pasadena. A guest speaker is scheduled to discuss how to set and meet goals. The cost is $5. For information, call (818) 790-4194.
