A More Compassionate "Managing Out": A Guide for Leaders

It's not uncommon for leaders to find themselves at a crossroads with a team member, faced with the painful and uncomfortable challenge of guiding the employee to find their next chapter outside the company. Approaches to letting a team member go vary wildly from organization to organization and leader to leader. In this world where anyone can post a comment or review, organizations are wary of making the next news cycle with a botched firing. Plus, we live in a highly litigious society, so legal action following a firing isn't entirely uncommon. These concerns are understandable and valid, but too often, they give way to termination methodologies that have even deeper consequences for everyone.

I'm talking specifically about "managing out" and the way it's most typically implemented, which is not best practice. Managing someone out properly calls for a blend of empathy, strategic foresight, and genuine concern for the individual's career and well-being. It's a practice that, when approached with thoughtfulness and integrity, can transform a potentially difficult situation into an opportunity for growth and positive change. Still, unfortunately, it frequently doesn't go that way. Let's explore how leaders can navigate this path with grace and compassion, ensuring a transition that protects the organization, respects the employee's dignity, and supports everyone's journey forward.

Reasons to Let Someone Go

There are many reasons why an employee might no longer be a fit for a team. They might not be performing up to the expected standards. Or they might not fit into the organizational culture. Their role might have changed. Outside of malfeasance or theft (this article does not cover such instances), it's important to acknowledge that a transition is necessary and to handle the next steps with care and consideration for the contributions of the team member.

Why not let someone go? Don't let someone go because you just don't like them. Exceptional leaders find ways to get the best out of anyone, even people they wouldn't choose to spend time with outside of work. A team member you don't like might hold the untapped potential to be your best performer. And, it should go without saying: never let someone go because of your personal biases.

Typical "Managing Out" Process

I tend to see clients when they are either on a PIP (Performance Improvement Plan) or have already been managed out. And I see the devastation that this process causes when handled poorly.

Most typically, an employee is moved to a new team. They may stop getting invited to appropriate meetings for their level. Their supervisor seems checked out with them. They are not offered any opportunities or stretch assignments. They feel alienated, uncomfortable, and unnerved. Often, someone will approach them with a PIP, saying that they must improve in specific areas to keep their jobs. Then they're assigned a project that's either impossible or extremely vague (or both), either of which would make it difficult to complete the project successfully. Communication is minimal and unclear, and the employee begins a cycle of self-doubt, fear, uncertainty, and shattered confidence in themselves and their capabilities. Often, the employee trusts the words "performance improvement" and believes that they have an opportunity to demonstrate that they can and will do better, but most frequently, that opportunity does not truly exist. Negative feedback typically increases during this time as well.

By the time the PIP expires, the employee is in a mental health nightmare, and eventually, either they decide to quit on their own or the company finally has to say the team member didn't measure up and lets them go.

Alternatives to Managing Out

Before deciding to manage someone out, consider whether there are alternative solutions that could benefit both the employee and the company. These alternatives can include:

Role Redefinition

Explore whether the employee's current role can be redefined to better match their strengths and the company's needs.

Internal Mobility

Assess opportunities for the employee to transition to a different department or role within the organization that might be a better fit.

Skills Enhancement

Invest in training or professional development programs to help the employee acquire new skills or improve existing ones, potentially opening up new avenues for growth within the company.

If the employee cannot be retained in any fashion, then it's time to think about termination.

Better Managing Out: Open Dialogue and Empathy

The foundation of any respectful transition is clear, open communication and empathy. This requires moving beyond vague hints or indirect feedback, instead engaging in honest, direct discussions about the company's needs, the employee's performance, and potential misalignments. These conversations should not only focus on areas for improvement but should also celebrate the employee's successes and strengths. The objective is not to undermine the confidence of your team member but to offer a transparent assessment that encourages the individual to realistically think about their career aspirations.

A Note For Leaders: Please be thoughtful about sharing your opinions about how far you think a team member can progress in their careers. Many a leader has been wrong about such suppositions, and just because you haven't gotten that team member to perform at peak levels doesn't mean they can't do it. Do you really want to make statements that someone with untapped potential might view as "fact," statements that could derail any confidence that they might feel in their professional capabilities?

Leaders must understand that, as much as you hate letting someone go and would prefer an easier, less painful path, the situation is much, much more painful for your employee. As a leader having a difficult conversation, you're uncomfortable. Your team member may be terrified: we live in a world where many people live paycheck to paycheck and where finding a new role can take up to a year. As a leader, it's your job to lead and that often means having hard conversations and saying difficult things. If you need help improving this skill, hire a coach . But whatever you do, don't make your team members pay for your discomfort.

Foster a Culture of Continuous Growth

A key element in managing career transitions with empathy involves cultivating a workplace culture that values learning, adaptability, and open-mindedness. In an environment like this, transitions are viewed not as failures but as natural progressions in one's professional life. Celebrate these milestones, whether they lead to new opportunities within the organization or elsewhere, and you'll reinforce a positive outlook on change and support a culture of continuous personal and professional development.

Legal and Ethical Considerations

Navigating the legalities and ethical implications of managing someone out is paramount. It's essential to ensure that the process is conducted fairly, transparently, and in compliance with all legal standards. This includes providing adequate notice, respecting confidentiality, and offering support such as career coaching and outplacement services where appropriate. Consulting with HR experts and legal advisors is advisable to ensure that both the company's and the employee's interests are protected.

The Role of Leadership in Transition

Effective leadership is critical in navigating the complexities of managing someone out. Leaders must balance organizational objectives with empathy and kindness, demonstrating a commitment to the employee's future success. This involves not just managing the transition but actively supporting the individual through it, providing guidance, resources, and encouragement.

Best Practices in Supporting Employees' Career Transitions

As leaders guide employees through this transition, several best practices can ensure the process is as positive and constructive as possible:

Regular Check-ins

Maintain an ongoing dialogue, offering consistent feedback and support as the employee navigates their next steps. Don't pull back. Embrace the discomfort and lean into helping your employee to make decisions and moves.

Personalized Development Plans

Work together to create a development plan that aligns with the employee's career goals, leveraging company resources to prepare them for the future. If you actually think the employee can improve and grow into their role, then put them on a PIP that will help them achieve success. But don't use a PIP unless it's truly possible for them to succeed, lest you create a false sense of hope for your employee. Too often, PIPs are designed for the employee to fail (ask yourself how many people you know who have successfully made it back from a PIP), which can undermine your employee's confidence and ability to seek a new role. A personalized development plan can help your team member to evolve and prepare themselves for a new challenge.

Access to Resources

Offer access to career coaching, resume workshops, and networking opportunities to support their job search and professional development. If you feel comfortable that this team member might just have stumbled into the wrong organizational culture, and if you believe they would perform better in another company, consider making introductions where possible.

Managing someone out, when done with care, empathy, and strategic intent, can be a meaningful step in an employee's career journey. It presents an opportunity for leaders to demonstrate their commitment to their team's well-being and professional growth, even as paths diverge. By embracing open dialogue, offering support, and exploring alternatives, employers can ensure that career transitions are handled with dignity, fostering a culture of respect and continuous improvement. You can even transform that employee into a fan of your organization, rather than engendering bitterness and resentment because of the way they were let go.

As you navigate these transitions, don't underestimate the transformative power of leadership that prioritizes human connection and mutual growth. In this more human approach, managing someone out becomes not just a task of leadership but a testament to a company's values and commitment to its people's holistic success - even the success of those you've let go.

A more careful, empathetic approach ensures that when employees embark on new ventures, they do so with a sense of confidence, appreciation, and readiness for what lies ahead. They leave not with a sense of loss but with a wealth of experience and the knowledge that their contributions were valued. Simultaneously, the organization maintains its reputation as a supportive and respectful place to work, one that understands the importance of every individual's career journey.

Ultimately, the goal is to create a win-win scenario where the departing employee feels supported in their next steps, and the company continues to foster a positive, growth-oriented culture.