Termination Process Team 1: Anuj Kumar Agrawal Mohaammed Al-baqmi Rahul Ramanujan Chun Chieh Yang

Introduction Employee termination is the process by which an organization ends an individual's employment against his or her will. A well-planned termination process that is implemented with sensitivity and balances the needs of three groups of stakeholders The company, the terminated employee, and the remaining employees

"Do it the right way, and there's no lasting negative effect on the company or the person who is exiting. “Do it the wrong way, the fired employee may have a very difficult time finding a new job and you and your company may end up in court” Richard S. Deems( How to Fire Your Friends)

Firing situation should be handled properly to avoid numerous possible pitfalls, which includes: A reduction in morale & productivity among remaining employees A decline in the company's public image Difficulty in recruiting new employees

Termination process is important in small businesses. "If you fail to purge chronic poor performers, the best [performers] will either believe that you condone lackluster performance, or assume that you don't know the difference. Being the best, they will only want to associate with the best," Martin Yate( Keeping the Best)

Cause of Termination Poor job performance Lack of "fit" with the organization, Inability to perform job responsibilities Conflict with managers or other employees

Steps to managing the termination process Decision Reasons Severance Benefits Work Transition Next Steps

Decision "A decision has been made to use outside agencies to provide your department's services. As a result a number of positions have been eliminated. Your job is one of these affected, and a decision has been made to terminate your employment."

Reasons A reason should be given as to why the decision to terminate the person's employment was made. When a position is eliminated due to economic or organizational reasons, it is important to stress that performance, career potential and personality are not involved in the decision.

Reasons (Cont…) An explanation will have to be given for "Why me instead of someone else?" The result coming out of the "reasons" discussion is an Exit Statement, which is a public announcement of the termination.

Severance Benefits A written communication outlining the benefits should be prepared before the meeting and given to each employee after the highlights have been verbally described. Benefits to consider include salary continuation (severance); benefits continuation, and outplacement services. Other items to include in the memo include official date of termination; office arrangements; return of keys, credit cards, cars and other company property.

Work Transition Sometimes the terminated employee is immediately relieved of work responsibilities. In other cases, the employee is asked to continue working until a certain date, and may even receive a "stay bonus" for doing so. Since there is no universally best way to effect transitions for all companies and employees, it is important to clarify how this particular transition will happen.

Next Steps As the termination meeting comes to a close, the manager needs to tell the employee what will happen next. Is the employee to go to another office to see someone? Is Human Resources to meet with the employee? Is an outplacement consultant on site to meet with the employee? Is the employee free to go to others in the company and discuss this matter? Establish an appropriate time for them to collect their personal property.

Wrongful Termination Breaches one or more terms of the contract of employment Provision in employment law Absence of a formal contract of employment a de facto contract is taken to exist

Wrongful Dismissal include: Dismissal for a wrongful cause Dismissal without going through a contractually mandated dismissal process Dismissal based on age sex, race or other protected class Whistle blowing Legal Action Remedies: Reinstatement of the dismissed employee, monetary compensation for the wrongfully dismissed. Employment probation period

Managers Should Remember to: Be direct, but not curt Be compassionate and yet make sure the message is transmitted and received clearly; Provide guidance, but do it gently and sensitively Listen carefully without losing the purpose and momentum of the meeting The place of meeting should be private and away from the individual’s immediate work area

Strategies to Help to Manage the Risk It is more cost effective and better risk management to rehabilitate rather than terminate employee. 1. Preparation: Verify important facts & develop “talking points” for the actual termination meeting. 2. Teamwork: include all individuals in the organization who are trained in HR management and employment low. 3. Documentation: Take time before making any final decision, to review the employee’s personnel and other files.

Strategies to Help to Manage the Risk 4. Discretion: Be as sensitive as reasonably possible, and terminate employees in an appropriate environment away from other employees. 5. Promptness: Manage the entire matter, from investigation to analysis, to determination, without a rush to judgment. 6. Exit Interview: Take special care during the exit interview because what manager say or write may be presented to jury or media. 7. Listening: listen to what the terminated employee says, and document everything for the record. 3. To make sure that the reason for termination is adequately documented.

Termination Meeting Thank the employee. Don’t assess blame or make apologies. Be clear and answer questions. Let your employee respond End on a positive note

Video’s: http://www.youtube.com/watch?v=nxsZDokxZBQ&feature=related http://www.youtube.com/watch?v=XVsBMiawY4k

Questions ?