From Pink Slip to Progress: Transforming Firing Practices in Modern Organizations

Rethinking Termination

Firing an employee is one of the most challenging aspects of organizational leadership. Yet, far too often, it is approached as a one-sided, reactive process that disregards the individual's humanity and the potential ripple effects on organizational culture.

While illegal, immoral, or unethical behavior rightly necessitates immediate termination, many dismissals stem from issues like misalignment, poor interpersonal dynamics, or outdated working methods.

What if...

What if we reframed the termination process into an opportunity for growth, for both the employee and the organization?

What if we replaced the cold finality of “you’re fired” with a more thoughtful and strategic approach?

What if we viewed every termination as a moment to reinforce our organization's commitment to humanity and fairness?

What if we focused on preserving relationships and reputations, even when the employment relationship must come to an end

Today I want to introduce a twofold framework that can guide organizations in handling terminations with greater care and purpose:

1. Help the Employee Transition Productively

2. Promote Challenging Employees to Customers

Let's jump in!

Helping Employees Transition Productively

When an employee is not a good fit, organizations often view termination as the end of their responsibility. However, unless the situation involves egregious behavior, leaders have an opportunity and a responsibility to help employees exit gracefully and with dignity.

Here's how:

• Assess the Root Cause: Ask yourself if the employee struggles due to skill gaps, miscommunication, or cultural misalignment. Identifying the root cause can determine whether remediation is possible or a transition is necessary.
• Offer Career Transition Support: Instead of leaving an employee “high and dry,” provide resources to help them find a role better suited to their strengths. This could include resume workshops, career counseling, or leveraging professional networks. This is where Human Resources (HR) can demonstrate true empathy (not to mention reducing lawsuits, unemployment claims, etc).
• Implement Conflict Resolution Practices: Before initiating termination procedures, activate principles and protocols for conflict resolution. Mediation sessions or facilitated discussions can help surface and address underlying issues. Better yet, ensure your organization (and yes even you self-employed entrepreneur can use this) has tried and true conflict management processes in place (if you don't - reach out and I'll be happy to share mine - they worked with 93% effectiveness when we created and implemented them in a fortune 50 company).
• Focus on Redeployment: In some cases, the employee may thrive in a different role within the organization. Have honest conversations about opportunities that better match their skills and temperament.

Helping employees transition productively protects the organization’s reputation, reduces the likelihood of legal disputes, and fosters goodwill among remaining staff.

Promote the Most Challenging Employees to Customers

What about employees who don’t break rules but bring an abrasive demeanor, outdated habits, or poor interpersonal skills to the workplace? For those employees (what we might call “old dogs stuck in their ways”) termination isn’t always about wrongdoing. It’s about alignment and impact.

The key lies in promoting them to customer, a phrase that emphasizes separation with dignity while preserving the relationship. I coined this phrase some years back when I had someone who was this guy... Didn't hit the bit 3 reasons for termination (Unethical, illegal, immoral) but just couldn't... or wouldn't get on board, so I said "... we're going to promote you... [dramatic pause]... to customer" which took him a minute to process. He left without issue and years later reached out to thank me for how I walked that with him.

Here are four (4) ways how to navigate this delicate process:

• Communicate the Why Clearly and Compassionately: Share specific examples of how their behaviors impact team morale, productivity, or culture. Avoid ambiguous statements like “It’s just not working out.” In other words, just be honest. It's what we expect from our employees, so why do employers not model it? (Ooooo side note as I am writing this... perhaps if you are in HR and you're hiding behind a policy or hiding behind HR - because let's be honest HR exists to protect the business not the people - which in and of itself is an oxymoron [let me know if you want me to break this concept down more] but that's a different story.
• Offer Constructive Feedback and Resources: Provide honest, actionable feedback about the changes they would need to make to thrive in the organization. Pair this with resources for professional development or coaching. Here is where it is possible to distinguish between immoral, unethical, and illegal behavior from impact & influence alignment concerns.
• Establish Boundaries for a Graceful Exit: If the employee refuses to change or adapt, set a clear timeline for transition. Offer assistance in finding external opportunities, but be firm about the departure. This is where the rubber meets the road (literally) when we say 'promoting to customer' vs a 'you're fired' mentality.**
• Ensure a Litigation-Safe Process: Document every step of the process thoroughly, ensuring that communication is clear, consistent, and unbiased. Engage HR and legal advisors to mitigate risks.

** Talk about an opportunity for previous employees to be your best marketing recruiters!!

Reframing the separation process as a 'promotion to customer' preserves the individual’s dignity while ensuring the organization maintains its standards and values.

Imagine being in an interview as the employer and asking the baited question 'Why did you leave your last job' (I wonder who really invented gaslighting now....) and you answer with

"I was promoted to customer. Our values weren't aligned in the most positive ways, however they helped me get here with your organization because they said it would be a better fit. And, they talked to Cheryl [not a real person , just a funny side note here] befoe referring me and it sounds like we would be a good fit"

Termination isn't easy, but we shouldn't make it a death sentence.

Practical Application: Conflict Resolution Principles and Protocols

Conflict resolution should be a cornerstone of any organizational firing framework. When done well, it can salvage relationships, uncover hidden issues, and even transform challenging employees into valuable contributors. Key principles include:

• Empathy in Action: Strive to understand the employee’s perspective. What do they believe is causing the friction? How do they perceive their role in the organization?
• Structured Mediation: Use impartial facilitators to guide difficult conversations, ensuring a balanced and non-confrontational approach.
• Behavioral Contracts: For employees who are willing to make an effort, establish a clear plan of improvement with measurable benchmarks and timelines.
• Cultural Sensitivity Training: For teams struggling with interpersonal issues, invest in training that fosters understanding, patience, and adaptability.

[I have an exact training called the "No TEARS in Conflict" course available in a DFY, as an in-person 4-hour workshop for your team, or in a 1-on-1 coaching session]

Why This Matters: Building Better Cultures Through Better Exits

How organizations handle terminations speaks volumes about their values. A reactive or punitive approach not only risks damaging the departing employee’s morale and future prospects but can also create fear and distrust among the remaining staff.

In adopting a more thoughtful, structured approach, leaders can certainly protect the organization’s reputation, by preserving relationships and networks, reducing legal risks, and ultimately strengthening the organization's culture.

My Perspective: Termination Is a Leadership Opportunity

Firing should never be a first resort.

It’s an opportunity for leadership to shine through empathy, strategic thinking, and a commitment to doing what’s right for all parties.

When handled well, the process doesn’t just mark the end of an employment relationship; it sets the stage for growth, understanding, and long-term success for the individual and the organization alike.

What are your organization’s firing practices?

Do they reflect your values and culture?

If not, it may be time to rethink your approach.

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Hi! I'm Steven. My mission is to Inspire belief, build relationships, and better the world...

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