There are times when a manager must make strategic decisions regarding terminations within their staff. This decision-making process could involve a myriad of factors, including poor performance, insubordination, or human resources issues. However, one way to quickly sabotage company morale is to terminate an employee when the decision is dictated by emotion. This reality is particularly true when managers are working toward building their company’s brand and attempting to build upon employee retention and recruitment.
Here’s what to keep in mind the next time terminations are on the table…
Terminations: Think About the Reason
Managers must carefully weigh the decision behind the termination to ensure it isn’t being made in the heat of the moment. Managers should ask themselves:
- Do you regularly have personality conflicts with this individual?
- Are you firing this individual for personal reasons or because they are genuinely having performance or other issues in the workplace?
- Can you prove your reasons with documented evidence for this termination?
Terminations are not an easy process. They involve a process of documentation through Human Resources, as well as an assessment of how the termination could immediately impact the rest of your team. For example, will someone need to pick up their workload until you’re able to rehire?
Costs Associated With Terminations
Terminations are costly, too, so terminating an individual based on emotions is an expensive mistake. Beyond the legal considerations, here are the typical costs associated with terminations.
- Indirect costs: These are the costs managers may not think about or don’t expect during the rehiring process. Management must be prepared for the rest of the team to experience difficulties following the termination, and this means low morale. The team could feel confused, an increase in strain from added workloads, and feeling instability from worries about their job security. Each of these issues could result in a lowering in productivity, which has an impact directly on the company’s bottom line.
- Lawsuits: legal issues, above and beyond wrongful termination claims, could arise. Therefore, it’s important for management always to ensure a termination is handled legally and ethically.
- Rehiring process: Aside from cases of staff reductions and consolidations, the cost of the rehiring and recruitment process must be taken into consideration. Managers must strategically examine terminations to in comparison to replacement salaries because turnovers can sometimes be considerably more expensive.
- Unemployment costs: By law, companies are required to pay unemployment benefits to terminated employees. Managers must understand the laws according to their state.
Consider Alternatives to Terminations
The last resort for managers should be terminations. Terminations are a financial, emotional, and company reputation-management burden. Not only will everyone have a difficult time reaching their goals, but they will feel less secure doing so. There are ways to address issues without having to go through terminations.
In some cases, managers can consider reassigning employees to new departments to help them perform better. In other instances, employees and managers can routinely meet with each other to discuss strengths and weaknesses to assist in determining where they could be a better fit for the company.
These actions help employees see that management values everyone, and that their jobs are secure. This effort will also serve as a boost to morale, as well, because employees know the company they work for appreciates them and is looking out for their best interests.
Keep your staff morale positive: Add new talent where it’s needed, quickly and efficiently — CareerCo can help!