Terminating Employees

Getting the right mix of employees takes time. At one
time or another, every small-business owner must decide
whether to discharge an employee. The saying "one bad
apple can spoil the barrel" is especially true in a
small company. If someone is dishonest or causes
problems, it will affect the entire staff and hurt
company morale. Here are some guidelines to help you
make your decisions appropriately.

by Jim R. Sapp

http://www.nfib.com/object/IO_16630.html

* Treat all employees fairly and consistently.

* When it becomes necessary to discharge an
employee, be sure it is for legitimate, job-related
reasons.

* Conduct regular, accurate and candid performance
evaluations.

* Keep complete written records of all incidents of
poor performance, as well as good performance.

* Be as humane as possible when discharging an
employee. If possible, terminate the person at the end
of a day or week when there are fewer employees around.
It is less embarrassing for the employee.

* Be sure to state the real reasons for the
discharge. Whenever possible, have another staff member
present during a warning or termination. Never
terminate someone behind closed doors that do not have
a window in them.

* If you anticipate a problem terminating the
employee, have another staff person in the room during
the process — particularly if the employee is of the
opposite sex.

* Be as generous as possible if you have to
discharge a long-time employee. It will already be
emotional enough. You do not, however, owe the employee
any extra compensation by law. Any unused vacation or
sick leave that has been earned should be paid
immediately.

* Be aware of the circumstances that may allow an
employee to argue that race, sex, religion or age
played a part in their discharge.

* Most states have "employment at will" regulations.
This means you can terminate an employee for "no"
reason. This is very beneficial, especially if you
suspect the employee to be guilty of theft, drug use or
dishonesty — but can’t prove it. In such states, you
can simply say, "I think it best we part company at
this point. We no longer need your services."
But, be certain of your legal standing before you act.

* Don’t delay once you’ve made the decision to
terminate.

* Never rehire an employee you have fired.

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JIM R. SAPP is an international business consultant and
speaker with more than 25 years experience as a
business owner and entrepreneur. He is Founder and
Director of the American Small Business Institute, and
recipient of both the "Entrepreneur of the Year" award
and "Blue Chip Enterprise Award" for inspirational
achievement in business. His book Starting Your First
Business is available from http://www.sappbiz.com or by
calling 800.570.5436.