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If only it were as easy as The Donald makes it seem.
Terminating a worker is one of the toughest tasks an employer is forced to do but can be absolutely necessary for sustained success in today’s competitive insurance marketplace. You just can’t afford to have dead weight draining resources and/or morale. With unemployment as high it’s been in decades, there are plenty of qualified candidates seeking work, so if you’re looking to replace stale experience with invigorating enthusiasm, now is a good time.
Nothing about the firing process is pleasant. How you arrive at the decision and best practices during the actual process are where many employers, insurance industry and otherwise, fall short.
THE WARNING: Before the decision is even made, the most important part of the process is giving the employee a window to change their ways. Lack of performance is a much less tangible offense than stealing, workplace harassment or extended absences, and letting someone go for performance often results in hard feelings (or lawsuits). Have you given this person radiant reviews and generous raises in the past? If yes, they might be completely shocked to learn of their termination and react accordingly. Make sure you’ve sent clear warnings, even a written memo, to ensure they understand failure to meet expectations will result in termination.
THE TIMING: Despite popular thought, Friday is the WORST day to fire an employee. Entrepreneur.com explains the reasoning this way, “Never fire someone on a Friday, because then they can “stew about it” over the weekend and come into work the following Monday ready for a fight, or even worse.” If you do fire on a Friday, get keys, credit card and any other company property and make sure the employee understands; once they leave for the weekend, they are not permitted on the premises without consent.
THE ENCOUNTER: When the face-to-face finally occurs, don’t get bogged down in long-winded explanations about failed objectives or allow yourself to get emotional. Discuss the situation from a business and logistical standpoint focusing on severance pay (if any), when they’re expected to leave the office and any benefits-related matters. It’s best to have them leave the office immediately after gathering personal belongings.
THE LEVERAGE: Getting a signed release of liability (drafted by a lawyer) can be vital if you’re worried about a discrimination claim. Since the person doesn’t have to sign it, adding an incentive for signing, like an extra week of severance pay, can be worth it in the face of a lawsuit. Liability form or not, it’s rarely a good idea to contest unemployment benefits. The resulting court encounter can benefit potential wrongful termination suits and you’re more than likely going to be paying the benefits anyways. Riskvue provides a comprehensive article on creating an airtight Employee Termination Agreement.
THE AFTER-EFFECTS: Eliminate the chance of a co-worker mutiny by immediately alerting all other employees of the termination and letting them know what to do should someone call or email the ex-worker. Dole out new responsibilities and use the time to emphasize how much the company and each individual’s success means to you personally and that it’s a move for the betterment of the agency.
No matter how much you prepare, there’s no predicting how an employee will react to termination, so it’s best to keep the entire process as concise and professional as possible. It can be the most stressful part of managing an agency but there’s simply too much competition to let dead weight bring your business down.
