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Is There a Right Way to Fire Someone?
Sooner or later, every entrepreneur has to let employees go. But the tough task can also serve as a learning experience. Our Board of Directors weighs in.
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It can be one of the most gut-wrenching decisions a boss has to make, but also one of the most necessary. It's awkward and uncomfortable and emotionally taxing on both parties. Unless you're Ari Gold, firing an employee is never fun.The business breakup can be especially tough for entrepreneurs, who closely manage small teams that they very likely helped assemble themselves. Personal relationships are on the line -- and occasionally, for better or worse, friendships. We warn against that, of course, but when a group works 15 hours a day building a venture together, bonds are bound to form.
Dissolving those bonds can be tricky. Corporate America is not known for its deft touch when it comes to letting employees go -- sudden mass layoffs, group firings, even dismissal by e-mail. George Clooney's fictional character in Up in the Air, a jaded "corporate downsizer" who literally crisscrosses the country to fire people he has never met, wasn't all that much of a stretch from reality.
But entrepreneurs are a slightly different breed. Sure, they're focused on profit and loss just like their pinstripe-suited counterparts, but many pursue the entrepreneurial path to create something bigger than just a balance sheet. They take pride in creating jobs and nurturing their staffs. Many of them decided to start companies after they were fired themselves. So when a hire goes wrong, even someone who proves to be woefully incompetent, an anonymous pink slip just won't cut it. The reality, however, is that economic downturns set in, employees screw up or maybe you made the wrong hire in the first place. For better or worse, cleaning house is often necessary, for the greater good of the company and the rest of your employees.
During their entrepreneurial careers, the members of our Board of Directors have employed thousands of people. But with that, inevitably, has come the task of letting some of them go. We asked them how to arrive at the decision, how to execute once its made and how entrepreneurs can learn from the experience and move their companies forward.
Warren Brown
Founder, CakeLove and Love Café
"Never pleasant, for either side. But I think the best way to let someone go is with honesty. Even though no reason is really required by law, it's only fair to have a reason why when letting someone go. When it's happened, I've made it very clear: It's either circumstances beyond our control (like the economy) or they've forced my hand with their extremely poor performance or judgment, or both."
Rob Adams
Director, Texas Venture Labs at the University of Texas
"Yes -- quickly and professionally. Even the best hiring managers have a success rate of 50 to 60 percent, so if you've made a hiring mistake, recognize it and take action. Entrepreneurs are usually very positive and optimistic by nature. But there are plenty of bumps in the road when you're running a business."
Jodie and Danielle Snyder
Co-Founders, DANNIJO
"Never easy. We always play up the person's strengths and let them know that it's apparent that the position isn't a good fit for them and that there is something out there that they will be more passionate about. It's a dirty job, but someone's got to do it -- and as an entrepreneur, its important that you're able to."
Tom Szaky
Founder, TerraCycle
"I don't know if there is a right way, but the way I do it is sit the person down and immediately tell them the news. Don't skirt around the issue. Then I typically ask them if they'd like more details as to why. In most of the cases, the people don't. The whole process is typically a few minutes. You know if you've done your job in managing properly if the person is not surprised by the news. If they are surprised, then you probably haven't been giving them the feedback they needed."
Phil Town
Investor and Author of Rule #1 and Payback Time
"Option A: This is the sneakiest way to do it. Move them into a 'better' job, give them a great title and then have the job just not work out. Then you can say, 'I'm so sorry, I totally don't want to let you go and there is no way I would do it if it could at all be avoided but THEY are cutting this whole department and unbelievable as it is, and as hard as I fought it, THEY are letting you go. I know. I can't believe it either.' "Option B: The RIGHT way to do it. Tell them as soon as possible, tell them the real reason why and give them a nice severance. However, if you actually do it this way, remember that no good turn goes unpunished and be prepared for a lawsuit. After you do it this way once, you'll probably go back to Option A."
Bob Parsons
Founder and CEO, The Go Daddy Group
"Absolutely. The employer needs to be direct, to the point and respectful. There should be no discussion attempting to justify or defend the decision, as it has already been made. Depending on how long the employee being fired has been with the company, there should be a generous severance package."
Jennifer Hill
Chairwoman, Astia NYC Advisory Board
"Yes, the process can be as important as the act itself. First, confer with your company's legal counsel to ensure that you are abiding by state and federal laws, as well as the company's HR department. Determine whether there is a plan for termination (i.e. a reduction-in-force or whether this is an isolated incident based on performance). Involve a third party if you can, such as the person's manager or an HR manager. This reduces the 'he said, she said' nature of it and tends to keep it more professional. Prepare what you are going to say and stick to a few key points. Avoid overdramatizing or editorializing it. Keep it very matter-of-fact, yet empathetic. Listen and avoid appearing dismissive. Ensure that the person terminating an employee is properly trained and can embody the best of the company while doing it. Although it's a difficult deed, there are ways to do so and still maintain a positive relationship between the company and employee. Last, have an action plan for next steps with the employee. Assemble a package of exit information (i.e. last paycheck, benefits information, severance - if any, state and federal unemployment resources, exit interview questions, and any company resources such as outplacement service recommendations). "The more you can help the employee to think constructively about the future, the more likely the employee is to handle the situation professionally and adopt a pragmatic view about the company."
Elizabeth Busch, Anne Frey-Mott, and Beckie Jankiewicz
Co-Founders, The Event Studio
"There a right way to fire someone. Absolutely. It's not about a scripted set of words or a standard protocol, but the way to fire someone is to be as honest, respectful and direct as possible. In business (as in life) there are often times when people aren't just the right fit. I think it's really important to remember that that doesn't make the person who needs to go an evil force of some sort. Especially as a business owner, it's really easy to take everything very personally, but very seldom are people actually trying to do you wrong. If you have to send someone out of your organization, be direct, be honest about what the problems are/were and remember not to make it personal. Keep it all on the table of what is best for your business. Oh, and don't forget that even from the worst situations you can take away meaningful and useful learning -- don't forget to mine the situation for what you need to know about your business moving forward."
Comments (Page 2 of 2)
I guess we really live in a tech world.....I was recently fired in an EMAIL....on a Sunday. Have you ever heard of such a thing?
Personally, I think the women in the article have better approaches to firings than the men. The men are basically just kicking the employee to the curb with little feeling. The women seem to be spending a little more time to make sure the fire-ee is ok with what just happened.
I was fired in May of this year. I was first told of two things I was doing wrong. I was able to prove that they were wrong and that I was in fact doing my job. They sent me out of the office and back to work so they could "confirm" what I was saying. They did. I was then told "they weren't happy with my performace." I think I was fired for the wrong reason, but oh well. I don't want to work for someone who fires people like that.
I was once fired for complaining to the boss that his son kept my 3 computers full of porn. True story!
I've been fired many times. When you are in the media and on-air, you are always being fired (program changes, age, sex (they need more women or men), type (they want a less or more glamorous person), race (they need an Asian or East Indian or have too many whites), style (too sporty, too delicate, too sweet, too hard), size (too heavy, not heavy enough because their audience is overweight [QVD and HSN) etc.). I learned to have a list at the ready of what I needed if fired. This is because no one wants to fire someone and the "firerer" feels a bit guilty. I never did anything wrong so I always had my list and asked for:
1. A higher paycheck for one day so my next job questionaire could reflect a higher salary.
2. A really nice letter of recommendation listing all the qualities they liked.
3. Use of their copy machine to make copies of my resume and recommendation.
4. Payment for two weeks vacation (whenever you are fired you are asked to leave immediately regardless of the circumstances).
5. The ability to make copies of your media work or to take originals if they are out of date at no cost to you.
6. That the station tell others inside and outside immediately, that day, the reason you are let go that is acceptable to both you and the employer, plus the fact you were given a recommendation by your employer so that some dopey, made-up, or untrue story or gossip doesn't get bandied about which could hurt you getting another job.
I usually received five out of six of what I asked for. It made them feel good and since I did nothing wrong, it made it much easier for me. You may get fired. Have a plan.
Incidentally, I also asked exactly what I could have done better, how I could have improved, if it was anything I did. I garnered very good information the was helpful to me.
I had to laugh at this one. A company will tell a employee how lucky the company to have you working for them What a great job your doing and on and on with the B/S.
BUT when the day comes they don't need you they don't even remember your first name.
"Good news on a Friday, Bad news ion a Monday". With 40 years of hiring/firing experience, I have found that asking what parts of the job seem easy and what parts seem hard for them. I would then respond how important those parts are for success and if he/she is butting their head against a wall, that looking at their "easy parts" will indicate what type of work better fits their strong skills. No one is excellant at everything. I would then name an industry, or job type for them to look at and sometimes give them a month to search "while still on the job"! It's the same as severance and it's easier to find a job when one HAS a job.
Interesting comments about Trump. Folks - its a TV show, and the "You're Fired" is just showmanship. I have no way to confirm, but I'd be willing to bet that he has fired a lot of people along the way, but I'd also bet that he never just walked in and yelled "You're Fired." You don't get where you are in his business(es) by acting like that, and I would relish being fired by him. I'm sure he would tell you why and give you all the assistance necessary in your future - after all, he saw something in you in the first place or he wouldn't have hired you.
Hiring and firing have become much different in Ca. I always thank the person for giving us thier best effort, and wish them well. But i never give a reason why. If you do not say why you do not need to argue or justify. People know when they are not performing, and it was never a surprize. I never did it mean and I never made them feel belittled.
Why is it so easy to fire especially in these bad times? The worker
doesn't need an explanation? They sure as heck do. What's obvious to you isn't to them especially if you never said that they were lacking. When someone is fired the boss doesn't care about their families or bills. Bosses are cheap and they fire the good people and keep the bad popular people. Any boss who doesn't feel the need to explain why they're firing is a cold-hearted person and you should be able to prove your worker is not productive because guess what? They can take you to the EEOC and sue you for wrongful termination if you can't justify a reason. Shame on you bosses for not giving a rat's ass about your employees who work hard for you. Guess you've all forgotten how tough it is to be fired, how your boss didn't care about you so now it's payback.
I received countless compliments from my coworkers, even an outstanding employee award, and then got fired because some women didn't like that I wouldn't gossip with them. They were intimidated that I was doing my job, was at work on time, and caught some $10K+ mistakes they did at the company. I was told I was 'too nice' and that they just didn't think I was the right fit. I have since moved on, but after what I witnessed, I have no problem reminding folks to write down everything they do, good or bad, and every conversation they have as evidence of wrongful termination. Even after reporting extreme verbal abuse and simply replying that it was unprofessional (with coworkers backing me up), I was the one sent home, and then fired.
i had the same thing happen to me. my boss once asked me into her office to discuss why I wasnt friendlier with my coworkers. she didnt like the fact while they were sitting around talking i was the one working. amazing. i was eventually fired after what seemed like a office version of survivor, everyday a new victim was chosen to be voted (fired) off the island. when my time came my boss couldnt even face me, she sent me on an errand to our other building and had hr waiting for me. i was furious as i didnt even have my purse. the funny thing was they screwed themselves by firing me they had to hire 2 people to do the work i was doing
If you aren't part of the in crowd at work it doesnt matter how hard you work or how nice you are or how often you cover for the slackers or if your boss is prejudiced. You just arent a good fit if you arent one of the texting fools and the Face Book junkies and gossip crowd.