Firing An Employee – Fire Fast

It hurts to be fired.  It hurts an employer to tell someone, “You’re Fired.”  But sometimes it must be done. Small businesses cannot afford to keep employees who aren’t productive.  Even in the best of financial times, your small business needs to watch cash flow, and employees are expensive. And this certainly isn’t the best of financial times. But firing is one of the toughest jobs of the small business owner.  How do you know when to fire someone?  And how do you learn from your hiring mistakes so you don’t make them again?  And how do you assure that you won’t be sued by a disgruntled ex-employee?

In the wake of many firings and layoffs, wrongful termination and discrimination lawsuits increased in 2008.  Small businesses need to step carefully when terminating employees.  But if you have to do it, then do it right.

Hire Slow, Fire Fast. One of the rules-of-thumb I learned many years ago is to “hire slow, fire fast.”  Hire slow means taking your time to make sure you really need the position and that you find the right person: 1) Don’t put up a job application unless you are absolutely certain you need the position, 2) Take your time and make sure you have the right person for the position, and 3) Don’t hire someone just to give them a job.

Fire Fast means: 1) Be certain that there is no other solution. 2)Make sure you are on firm legal ground, having documented the employee’s poor performance and attempts to counsel and encourage, 3) Then don’t wait.  Do it quickly.  It’s like pulling off a band-aid.  If you do it quickly, it will hurt like heck, but only for a few minutes.  I have seen employers get all their documentation in order and then sit.  And wait.  Maybe the woman’s husband just had a heart attack; maybe she is sick and she tells you the doctors think she has cancer.  You have to balance your need to be humane with your need as an employer to make your business work.

Is there another solution? Sometimes the worker is just misplaced.  Maybe you hired Jim to work on getting your website set up, but he might be better at writing a company blog.  If you have gone to the trouble and expense of hiring someone, see if you can put the person in a job where he or she is better suited. Maybe you can put the person on part-time or reduce his or her hours.  Consider alternatives before you cut.

Have you documented the problem? Employers have to be careful not to be seen as arbitrary and discriminatory.  Before you decide you want to get rid of someone, make sure it’s not going to come as a surprise to the person.  Do regular reviews, document the problem performance and your attempts to get the person to change.

Have you talked to your attorney? Before you fire someone, consult with advisers, particularly your attorney.  Explain the situation and everything you’ve done.  If your attorney says, “You don’t have it nailed down yet,” do what you must to make sure you are on sound legal ground.

What do you mean “Fire Fast”? If you are saying, “This doesn’t sound like ‘fire fast,’ well, it’s part of being an employer in today’s legal environment.”  The “fast” part comes at the time when you make the decision.  Don’t wait.  Just do it.

Tomorrow:  Planning the Firing Meeting

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