The Wall Street Journal has mentioned that firing an employee is one of three things which make company chiefs most anxious. You can hardly escape it. But when it happens you must do it sensitively and of course within legal bounds.
Disciplinary issues
Disciplinary confrontations with employees can be minimized by establishing logical and clear rules and by creating mutual trust between management and labor.
Company rules should be reasonable. Before adoption of rules workers should be taken into confidence. Let all of them thoroughly understand interpretation and consequences of violation of rules. However it is necessary to be flexible in enforcing certain rules. Give due consideration to extenuating circumstances. Communication channels should also be kept open for employees to question rules which they may feel unreasonable.
Develop warning system for circumstances where employee performance warrants punishment. You may devise a procedure by which erring employee is gently reminded of rule on a related issue. Second time you may issue sterner written warning outlining past behaviour or performance and indicating probation period. Issue final warning and state clearly that further violation would lead to dismissal. Probationary warning should indicate improvements expected in the way of performance in a specific time frame. Warnings should not be allowed to be taken lightly.
Avoid termination as long as possible
Termination of an employee should be avoided as far as possible and should be considered only as the last resort, unless it involved impropriety, theft or gross incompetence.
Define job assignments of employees in clear terms. Lack of clarity of expected role is often the real reason behind employee’s bad performance. Performance review can provide fair opportunity to an erring employee to change for better. Establish goals and remind employee that continued failure to achieve them would invite dismissal.
Introduce Documentation of Performance
Document performance on goals and deadlines agreed with the employee. This written process will help you in analyzing poor performance. Performance review interview will bring out problems that are affecting employee.
Documentation of performance will protect management while initiating disciplinary action against employee, who will not be able to deny that warning or fair chance was not given to him/her. It is worth noting that labor boards and courts accept only written evidences while hearing employee termination cases.
In case of an erring officer or director of a company, his/her appointment can not be terminated. You require resignation or vote as per the corporate bylaws.
In the event of termination of an employee, be careful about benefit schemes. Rights of terminated employees are well protected under the Employee Retirement Income Security Act.
