Small Business Tips: 6 Tips for Terminating an Employee

By David Crary  
 

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The only thing worse that deciding that you have to fire an employee is actually delivering the bad news. This is awkward and uncomfortable for both people involved. But, the time comes when it simply has to be done. Your goal is to make your terminations as smooth and painless as possible. Here are 6 business tips to terminating an employee in your small business: 

1. Prepare

Never make a snap termination decision. Your employee may make you want to tear out your eyeballs, but you should always maintain your self-control and avoid terminating anyone on the spot. I would advise you to consult with a lawyer and an HR consultant for every termination circumstance. They will help you make sure you won't face a wrongful termination lawsuit, which could end up costing your small business a lot of unnecessary expenses. It is always best to be safe especially when you are dealing with angry ex-employees that want to generate some backlash. 

In addition, prepare what you are going to say in advance. Don't allow yourself to get caught in the emotions of the moment. Be very professional and deliberate with what you are doing.  

2. Don't go it alone

Have someone witness the termination, and make sure that it is the right person. You should choose a witness that will remain calm, will not interrupt, and is able to document the meeting and testify on what was said if necessary. Do not choose someone who has any direct affect in the termination, anyone who has had issues with the employee in the past, or anyone that might feel happy about the termination. This can make an already tense situation even worse. You would rather choose a friend or a role model to the employee to try to alleviate the stress of the situation. 

3. Do it face-to-face in a private setting

At the very least, your employee deserves the respect of a private, face-to-face termination. This way the employee can process the news without the invasion of spectators. The best place would be the employee's office if he has one. That is the place where he feels most comfortable, and he will be left alone to deal with the information and pack up his belongings in privacy. 

4. Don't beat around the bush. 

Start by telling your employee that he is being terminated. You can't make it any easier for either of you by taking forever to make your point. You need to tell the employee right away that they are being terminated in order to move the conversation in the right direction from the beginning. This will help you stay in control with an employee that typically likes to do a lot of the talking, and hopefully it will be like ripping off a band aid in one quick, relatively pain free motion. 

5. Don't back down

If you've made the decision to fire someone, don't let them talk you out of it. You have to remain confident with the decision that you made. You may be taken aback by what the employee will say to try to persuade you to change your mind. The bottom line is to trust yourself. You know what is best for your small business. You have to stay true to that. 

6. Keep your explanation brief but specific

Do your employee a favor and tell him exactly why he is being terminated. Don't go over a long list of every failure, but be specific enough so that he can learn for the future. Sometimes, the truth doesn't click for certain people until they are given a reality check. Even though you have decided to terminate this employee, you can benefit his future by telling him where he went wrong. 

[Related: Small Business Tips: What You can Learn from Football Season!]

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