Week 17: Termination of Employment
Share insights on how to make decisions on termination and lead those that remain.
Employee termination is a sensitive and consequential decision for leaders, impacting both the individual being terminated and the broader organization. While termination may be necessary in certain circumstances to address performance issues, misconduct, or organizational restructuring, it also raises ethical considerations regarding fairness, dignity, and compassion. This article explores the complex dynamics of employee termination, offering insights into termination criteria, ethical considerations, and best practices for conducting terminations with integrity and professionalism.
If you have ever been terminated from employment, it is not pleasant. If you are a leader and ever had to terminate an employee, it was also not pleasant. However, termination is an event that you will have to act upon at some time in leading others. Leaders should consider not only the legal ramifications of firing someone but also the ethical and team impact as well. Firing an employee has financial costs regarding severance or pensions, and it has legal costs if it is not done correctly. Not firing an employee also has costs to teams, production, customer service, and organizational culture. Let’s learn how to do it right.
Sources for this article:
Cascio, W. F., & Aguinis, H. (2011). Applied psychology in human resource management (7th ed.). Pearson/Prentice Hall.
(2023) How To Terminate an Employee (And What Not To Do). Indeed Editorial Team (accessed on 24 April 2024 at https://www.indeed.com/career-advice/career-development/how-to-terminate-an-employee)
Understanding Employee Termination.
Leaders are responsible for workforce planning which in part requires them to fire employees. Employee termination refers to the involuntary separation of an employee from the organization, typically due to performance-related issues, misconduct, or changes in organizational needs. Termination decisions should be based on clear criteria and aligned with organizational policies, legal requirements, and ethical principles. While termination is often viewed as a last resort, it may be necessary to maintain organizational effectiveness, uphold standards of conduct, and protect the interests of stakeholders.
I had a general officer ask me when a leader should get relieved of command or duty? Is it only in circumstances where wrongdoing is proven, or in other words, a criminal or immoral act was committed? My response was simply that in cases where someone makes critical mistakes over and over again, it is necessary to remove them. Termination is not reserved for just misconduct or criminal behavior. It is the easiest to aid our decisions, but leaders need more than one criterion to successfully navigate this topic. With that in mind, I want to begin looking at when you should terminate an employee.
Termination Criteria:
Incompetence. Persistent underperformance or failure to meet job expectations despite remedial efforts and support. The remedial efforts are a key item that we will discuss later. Look for repeated instances of missed deadlines, errors, or quality deficiencies that impact organizational goals and outcomes. Cascio, W. F., & Aguinis, H. (2011) discuss having acceptable characteristics for employment and minimum requirements to qualify for the job.
Insubordination. When there are repeated related issues such as dishonesty or breaking company rules. You might think this is similar to misconduct, however, I am categorizing this to include disloyalty and a general sense of disrespect to others that might not cross over to criminal or illegal. Many know how to skirt the legal gray area and you may need to terminate an employee that isn’t legally wrong, but still disloyal.
Attendance or Appearance. Similar to incompetence but slightly different. This employee may know their job well but may have hygiene issues or time management problems, such as frequent absences or chronic tardiness. Just as for incompetence, termination of employment is held until after all opportunities to remedy their faults are exhausted. Another topic that may skirt the misconduct or insubordination line but doesn’t always go that far.
Misconduct. Violation of organizational policies, codes of conduct, or ethical standards, such as dishonesty, harassment, or workplace violence. Criminal behavior or serious breaches of trust that undermine the integrity and reputation of the organization. Sexual harassment and other discriminatory behavior in the workplace. Physical violence or threats against other employees are all factors that should have zero tolerance.
Organizational Restructuring. Changes in business needs, market conditions, or strategic priorities that necessitate workforce reductions or realignment of roles and responsibilities. Mergers, acquisitions, or downsizing initiatives that result in the elimination of redundant positions or departments. Remember that if the organization fails, everyone loses a job, so although it might be difficult to terminate someone on this basis, it may be necessary. Also, remember that this should not be used as an excuse to fire someone without cause. It can result in legal troubles especially when you turn around and hire a new employee for the same work.
Ethical Considerations in Termination.
Each type of termination criteria may aid in your decision-making process to terminate an employee but doesn’t solidify the steps to terminate someone. Leaders must ensure that termination of employment decisions are based on objective criteria. You should always apply these criteria consistently across all employees. As we discussed in our week 4 article, the organization should have due process protections, such as written warnings, performance improvement plans, and opportunities for appeal. If termination is a difficult process, in most cases, for all that take part in it, then great leaders should ensure it is done right.
Week 4: Due Process in the Workplace
In the contemporary workplace, the concept of due process sounds foreign and governmental. I argue today that due process ensures fair treatment and protection of employees' and employer’s rights. This week, we delve into the roots of due process, its incorporation into the U.S. Constitution, and its critical role in shaping workplace systems to protect supporters like you. Additionally, we explore instances where due process protections have come under scrutiny, specifically examining concerns surrounding the alleged violations of Donald J. Trump's due process rights by the U.S. and State Governments.
Leaders must use proper remedies before termination happens. The first and best tool is counseling or mentoring. Pulling someone aside, in private, and laying out an improvement plan that fits an employee's abilities over time. If you give a person a 90-day plan, don’t fire them 45 days later. If you make a plan too broad or difficult, or a plan that does not remedy the behavior, don’t expect that employee to survive your failed leadership. Another remedy is to move an employee to a different section or position to see if they improve in that new setting. Remedies should also have performance measurements, as quantifiable as possible, so there is no confusion about success. “Our objective in performance appraisal, however, is to judge an individual’s performance, not factors beyond his or her control” (Cascio, W. F., & Aguinis, H., 2011). Remedies also help document the employee's willingness to improve or show their incompetence which can be used in any termination of employment decisions.
After termination is decided, and the correct legal processes are adhered to in that process, leaders should always treat employees with dignity, respect, and with empathy throughout the termination process. You must recognize the emotional impact of any job loss and offer direction to support resources, such as career counseling, outplacement services, and severance packages. Leaders may have personal attitudes to certain employees that drove them to termination but they should remain human beings and understand that good decisions can still have negative consequences.
Many of the Soldiers that I have terminated from their job or the Army, I still assisted with getting them back on their feet in their new position. This was not easy of course, and some never wanted to speak to me again. Over time, I have had Soldiers reach out to me for referrals, mentorship, and just general advice. I believe that this was due to my ethical treatment of them during the termination process. I realized that just because a Soldier was not a good fit for the Army, it didn’t make them incompetent in everything. Some people have certain sets of skills and most find their purpose in life. Even those who were terminated for criminal behavior or misconduct can receive empathy.
I have found that the only way to fire someone is through direct and honest discussion. Communicate termination decisions openly and transparently, providing clear explanations for the reasons behind the decision and offering opportunities for employees to ask questions, seek clarification, and express their perspectives. “Make sure you've documented the various reasons that lead to your decision … Have your documentation in order prior to the start of the meeting” (How To Terminate an Employee (And What Not To Do), (2023). The bottom line, be prepared for the meeting.
Best Practices for Conducting Terminations.
How to Terminate an Employee (And What Not To Do) (2023) discusses more about preparing for that meeting. In the subscription section below, I provide insights and a list of best practices for subscribers:
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