Small Business Expert

Your resource for informative videos, articles, and tools to save you time running a successful small business.

Small Business Documents & Forms

Starting or already running a small business? We have fully customizable business forms and legal documents that will help keep you organized and well-documented. Available for immediate download after purchase.

Visit The Form Center

What to Do When You Are the Firing Squad

No matter how rosy the expectations when you hire an employee, sometimes things don't work out and you have to say those infamous words: "You're fired." Unless you sport a comb-over and have your own TV show, you probably don't relish these moments. In fact, it's likely the worst part of owning a business.

"This process is every bit as tough on the person giving the bad news as it is on the person receiving it," says Cliff Ennico, a noted author and attorney in Connecticut who represents small businesses and early-stage technology companies.

Though the experience may be awkward or even painful, firing someone should never come as a shock to the person receiving the news.

"If you're doing what your job well, there shouldn't be any surprises," says Joanne Sujansky, founder and CEO of Key Group, a business consulting firm in Pennsylvania.

When employees are not meeting expectations, they should be made aware of the problem and given a chance to improve. "They should be put on a developmental plan: 'What changes can we make together to improve your performance?'" Sujansky says. "There should be coaching and feedback on a regular basis - and that applies to all your employees. You'll fire less frequently if expectations are clear and coaching is given up front."

Jeff Johannigman, president of People Type Consulting, in Austin, Texas, stresses the importance of hearing what the at-risk employee has to say. "You hired them in the first place believing that they could do it; you have to really determine if the problem is a lack of knowledge, skills or motivation. Put on your counseling hat to get at the root of it," he says.

Ennico says to set specific goals for the employee and be clear about the consequences for not meeting them within a certain time frame. That way, if they fail to rise to the occasion, it is clear why they were let go.

Employers need to keep minutes of all coaching sessions and meetings; don't just write down when the employee was late for work or missed a deadline. Johannigman recommends saving any written complaints about the employee from customers, other managers,or coworkers as well. All of these documents can be submitted as evidence if the employee, or a lawyer, ever challenges your decision.

If the employee fails to improve and must be fired, choose the date and time carefully. Discretion is critical, so do it when there is minimal office traffic, such as early morning or the end of the day. Also, have someone in the room with you during the meeting so there's a witness to the conversation. And choose your witness wisely: "If the employee is of the opposite sex, make sure the witness is of the opposite sex; people sometimes say funny things about what happens behind closed doors," Ennico says.

When choosing your words, remember to keep them brief and focused on the work product, not the person. Also:

  • Have an administrative employee - rather than an authority figure - escort the employee to his desk to gather his belongings and exit the building.
  • Give the employee a moment to respond and regroup, but don't leave room for ambiguity or discussion.
  • Be sympathetic, but don't apologize. It implies that you are doing something wrong.
  • When notifying other employees, simply state that the person is no longer with the company. Don't go into the details; it looks unprofessional.
  • "People will talk no matter what you do, but the important thing is to keep your business on track," Ennico says. "As with any painful experience, keep it short, get it over, take a swig of brandy if you need it, and get on with your business."