Firing employees in a small business

Employee termination is a difficult but sometimes necessary managerial duty. In large companies, human resources departments will frequently take responsibility for firing an employee, but in a small business, it's up to the owner. It is important to learn how to fire an employee while working to minimize the potentially disruptive impact of an employee termination.

A firing is only warranted when an employee has failed to execute their responsibilities properly. Before you consider firing someone, it is crucial that you have spelled out the letter of their job responsibilities. The best way to do this is by completing the following steps-

• Create a Human Resources manual that describes company policy regarding office culture, vacation time, sick days, payroll deductions and any other HR-related issues. There is commercial software that can automate and simplify the creation of such a manual, which will serve as a reference in all disputes with employees.
• Clearly describe all responsibilities at the beginning for every new hire. If you have not told employees the exact scope and nature of their jobs, you cannot fire them for what might be due to your own breach of responsibility. You should realize that it is your duty as a manager-owner to think carefully about what you want each new hire to accomplish and ensure that new hires understand and accept responsibility for their job roles, in-company behavior and other conditions of hire. Try to be as detailed as possible. The more that you articulate what is required of all new hires, the more confident they will feel in their roles. If you do this well, terminated employees will be much less likely to take the firing personally, and you will also feel managerially vindicated.
• Offer a thorough employee orientation to your new hires. Orientations should give new employees an overview of the company's structure and policies. In addition this orientation should help them understand their role and adjust to your workplace culture.
• Document employee performance regularly and comprehensively. You should build a file on employee performance from day one for every new hire. Keep in mind that you are tracking how well they execute those responsibilities. Try to perform weekly reviews of the employee's work so that any slippage in performance can be caught and diagnosed while the consequences are still limited.
• Be sure to document all lapses at the time of their occurrence. If an employee fails to follow any general HR policies (such as notifying you of an unplanned absence) or job-specific responsibilities, you should document the lapse in writing and discuss it with the employee. If you feel that another lapse could result in a firing, warn the employee.

If you have completed the above steps and an employee still fail to meet your standards despite these procedures, you now have grounds to fire them. Here is how to go about it:

• Depersonalize. You should emphasize that the firing is about the position, not the person. You should let your employee know that it is your responsibility to the company to fill the position to your satisfaction.
• Do not be vindictive. An employee termination often brings out the worst in people, managers included, but this is the time to keep your cool. If your employee has performed good work in other contexts, you should recognize it and offer to write a letter of reference.
• Stick to the book. If your HR manual says that you will give two weeks' notice, you need to give it. Employees will be highly aware of any discrepancy between what you decide to do and what you have written, so be certain the two are consistent.
• Follow the law. You can not fire employees while they are on jury duty, taking leave under the Family and Medical Leave Act, or in other protected situations. You should know what these situations are and never fire anyone who is covered under them.
• Keep all of your documentation. You should retain employee records indefinitely. If a fired employee decides to sue you, you may need to prove that the firing was motivated entirely by professional factors. Your documentation can help you make this argument in court.
• Know that you should manage the fallout. You can discuss the situation with concerned employees. Just don't share personal information about the fired employee, but emphasize that the firing took place according to pre-existing policies and procedures. This is your chance to emphasize the fairness of your company's policies. If other employees understand that the firing was not arbitrary, it will not worry those who are fulfilling their responsibilities.