How to Terminate an Employee – The Right Way

Disclaimer: 

It is never pleasant to fire someone, regardless if you know that person well or not. However, if you have a poor performing employee who doesn’t show any signs of wanting to improve, then you really cannot afford to waste time and money by keeping him around. Fortunately, there’s no gray area when it comes to firing someone- it’s either you do it the right way, or the wrong way. If you get this process all wrong, you could cause unnecessary pain for you both or worse, you might end up with a lawsuit. To avoid possible complications, it’s best you learn how to terminate an employee the right way.

The Proper and Safe Way of Terminating an Employee

• Firing shouldn’t come as a surprise

It shouldn’t come as a shock to the employee that he or she is being fired. The actual “firing” should be the final step to a review process. You need to first warn that person that they aren’t performing up to par and that he is at risk of being terminated. Learning how to terminate an employee requires lots of patience, and a firm decision. You have to inform him about his poor performance, and then discuss how he can improve and finally give him time to change. If there is no improvement, then you can let him go.

• Have data to support the decision you’ve made

You will need sufficient proof to back up the choice you have made. If your reason for terminating him is attendance, non-compliance with company rules, or other sensitive issues, then you should have documents or witnesses to prove this claim. If it’s about poor performance, your initial warnings need to have realistic goals that can be measured, and recorded in paper. If this goal isn’t met, then you can show performance logs to prove his poor performance.

• Do it privately

Although taking your employee out for a meal and firing them in the restaurant might be a good idea, it is not the best environment to spill the beans. Consider a private, neutral place such as a conference room. This is a basic step in learning how to terminate an employee. You don’t want to break the bad news in public, as the person being fired could cause a scene.

• Don’t ever fire an employee alone

One of the things to learn about how to terminate an employee is that you should never announce it to the employee alone. Always have a witness with you during the meeting, because you never know if the employee may retaliate. Aside from that, such conversation could lead to an argument, and the things you say might be used in court if he decides to sue.

• Be compassionate but don’t be misleading

When firing someone, you need to be compassionate and respect the employee’s dignity throughout the firing process. Many lawsuits are a result of superiors not treating their employee with empathy and dignity. Since you’re firing this person, you don’t need to insult him or go over his poor work in lavish detail. However, you shouldn’t be misleading as well, tell the person that he’s fired, and state the reasons for your decision. Say your goodbyes politely and wish him well, then that’s it.

Knowing how to terminate an employee the right way is crucial for your business’ income and continuity. You don’t want to constantly deal with an employee’s mediocre performance, don’t you? Aside from that, terminating an employee properly will prevent unnecessary stress with possible lawsuits and employee uproars. There is nothing wrong with letting an employee go, so long as you do it right.

Having a conversation where you have to terminate someone is difficult, even if you have handled it dozens of times. 

Let us help you make it easier. Download our guide Making Difficult Conversations Easy and get the tools to help your navigate through these conversations.

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Linda Finkle

Executives and top performers in leading companies rely on Executive Coach Linda Finkle to call them on their blind spots, expand their influence and create bigger things for themselves and the companies they lead. High-achieving professionals from Ameriprise, Mass Mutual, Blue Cross Blue Shield, major law firms and dozens of others have come to know Linda as their secret weapon to overcome leadership and communication challenges that stand in their way of making an even bigger impact.

Linda is described as ‘the best of both worlds in that she understands revenue pipeline management as well as running an organization day-to-day’ and ‘an invaluable resource and advisor’ by others. No matter how they describe her, clients regularly welcome the benefits that come from their work together. Most notably, clients’ gross revenues skyrocketed, communication skills have been refined creating a lasting ripple effect across the organization, allowing them to make bigger impacts at work and in their personal lives, and learn smarter ways of adding value without burning out.

Known for her great rapport and relationship-focused demeanor, she is often called direct and has a truth-telling way about her. Linda Finkle has coached and trained more than 2,000 leaders in six countries since 2001. Widely known as “The Elephant Chaser”, Linda has a reputation for going straight for the throat of whatever problems a business is having and working closely with leaders and managers to resolve them and to heighten the company’s overall performance. Whether working one-on-one with clients, as an inspiring speaker, as a leadership team facilitator, or with partnerships in distress, Linda is committed to guiding clients to clarity about their communications, behaviors and stumbling blocks that stand in the way of their effectiveness.

Before launching Incedo Group, LLC, Linda built and managed an executive recruiting firm for more than twenty years. Her recruitment agency identified talent for Fortune 500 companies and small to mid-sized business as well, and ranked among the top 10 recruiting firms in the country. Her ability to understand the corporate culture and needs of the company for both the long and short term ensured her clients returned time and again. Even today, clients and candidates from her recruiting days reach out to her for advice, help, and guidance.

Her ability to build trust immediately, her powers of perception and intuition, along with her tactful and direct style, create a space that allows clients to share their truth and receive the feedback they won’t hear from anyone else. It is exactly what they need to make changes to catapult their leadership and companies in powerful ways.