Letting someone go is never a walk in the park.
It’s a necessity at times, but boy, that doesn’t make it any less of a gut punch!
You’re building a company, not tearing one down, right?!
Firing employees impacts team morale, causes emotional stress, and is a HUGE productivity (and money) suck on any organization.
But don’t worry, I’m here to help!
After firing over 50 employees, I’ve built a bulletproof system that makes all the above a little less… painful.
Let’s dive in, shall we?!
Key Takeaways
- You need a firing SOP.
- A good firing process starts with your hiring process
- Setting employee expectations is an absolute must
- The strike system is the least painful way to fire someone
Related Reading: How to Hire Employees
Why is Having a Firing Process is Essential
I feel like if you know one thing about me, it’s that every company needs to have well-defined SOPs for everything, including firing.
Here’s why:
- Legal Protection: A well-defined firing process can protect your company from potential legal action. A SOP helps ensure you’ve followed all necessary steps and laws before termination.
- Consistency: A SOP ensures consistency in the way employees are terminated. This helps maintain fairness and transparency, reducing the chance of bias or favoritism.
- Communications: A SOP outlines clear communication procedures, ensuring the employee understands why they’re being let go and minimizing potential misunderstandings.
- Maintaining Morale: Properly handling dismissals can reduce the negative impact on the remaining team members’ morale.
- Documentation: A SOP ensures all necessary documentation and paperwork is complete and accurate, which is important for record-keeping purposes.
My Step-by-Step Process to Bullet Proof Firing
Over the years I’ve combined several systems into (what I think) is the best firing process.
Step 1: Hire Right
The best firing process begins with an effective hiring process.
Hiring the right people from the get-go drastically reduces the probability of having to let them go in the future (duh).
A well-planned hiring process helps you Identify and select individuals who:
- Possess the right skills and qualifications for the role.
- Align with your company’s culture and values.
More on hiring in another issue of the BFG, I just thought it was necessary to bring up.
Step 2: Set Bullet Proof Expectations
This goes without saying, but is often an overlooked step by new small business owners.
You NEED to set bulletproof expectations for the role.
You need to outline: The daily, weekly & monthly tasks for the employee. The expected outcomes for the role. Position & company-wide standards.
How do I do that?
I fill out a position agreement for each employee.
The position agreement outlines:
- Position Title: This is the official title of the role which will be held by the employee.
- Manager Position: This is the position of the individual to whom the employee will report.
- Results Statement: This provides a clear and tangible description of what success looks like in the role.
- Position Standards: This outlines the key tasks, activities, and behaviors required for the role.
- Company-Wide Standards: This outlines the company-wide expectations for all employees.
- Company-Wide Core Values: These are the values that each and every employee should uphold.
- Signatures: This is the final page where signatures are taken.
You can download a position agreement outline here.
Step 3: Use the Strike System
After using several different systems throughout the years, I think the strike system is best.
How does the strike system work? It’s pretty simple.
When an employee isn’t meeting the expectations of the position agreement, they will be given a strike.
Here’s how it works.
Strike 1: 30 days to change behavior
- Set a meeting with the employee
- Bring the position agreement out and outline where they are coming up short.
- Remind them that they have 30 days to change their behavior.
- Set a meeting 30 days from now to discuss improvement.
Strike 2: 30 more days to change behavior
- Attend the pre-set meeting with the employee
- If they’ve improved their behavior, let them know they are out of the strike system.
- If they haven’t improved, use the position agreement to outline where they are still coming up short.
- Set a meeting 30 days from now to discuss improvement or termination.
Strike 3: You’re (They’re)
- Out Attend the pre-set meeting with the employee.
- If they’ve improved their behavior, let them know they are out of the strike system.
- If they haven’t, terminate them on-site.
When I terminate an employee, here’s what I say.
“Based on everything we’ve discussed, today is going to be your last day.”
I don’t answer questions, I don’t argue with the employee, I just leave it at that.
*Note: I’ve had several employees fire themselves after getting into two strikes.
Typically, they know they aren’t changing their behavior (because it’s clearly outlined), and they will call a meeting and quit.
Step 4: Document the Strike System
This goes without saying, but each time you have to put an employee into disciplinary action, document it thoroughly.
Over the years, I’ve developed a quick and easy system to do this.
- Step 1: Create a Google Drive folder for each employee.
- Step 2: Create a sub folder in the employee’s Google Drive titled “Disciplinary Action.”
- Step 3: Create a Google Doc that outlines each of the strikes above, dates, times, etc.
In this step, it’s crucial to be as thorough as possible.
Step 5: Talk with Your Team
After a dismissal, it’s essential to openly communicate with your team.
The firing of an employee can disrupt the team’s morale, foster unnecessary speculation, and breed a culture of uncertainty if not handled properly.
A team meeting should be held to address the situation.
At the team meeting, you should:
- Explain why the employee was let go and specifically call out how they violated their position agreement.
- Explain how the employee doesn’t align with your core company values.
- Remain transparent but respectful to the individual who was let go.
- Reiterate the importance of the role each team member plays, and how their contribution aligns with the company’s broader goals and objectives.
Step 5: Reflection
The final step in the process is to internally reflect on what went wrong.
After every dismissal, I pause and take time to reflect on what went wrong.
I ask myself two questions:
- Where did I go wrong in the hiring process?
- Did I set realistic expectations?
The answers to these questions help me identify any patterns or areas of improvement that need to be addressed for future hires.
Remember, if you’re firing someone, you did something wrong.
Most of the time: You didn’t hire right. You didn’t set the right expectations.
It’s in the pain of reflection that true growth can happen.
Final Thoughts on Firing an Employee
Firing an employee is never easy, but it can be made more manageable with a bulletproof process in place.
By following the steps outlined above, you can ensure that your firing process is fair, consistent, and well-documented.
Remember to always communicate openly and transparently with your team to minimize any negative impact on morale and maintain a positive company culture.
