How to Dismiss an Employee

Employees’ layoffs are rarely pleasant and the process of informing an employee that the services are no longer required can be very tough for a manager and can even result in an emotional outburst from the affected person. However, a properly planned and conducted termination meeting that ensures that the employee’s dignity is preserved can assist in diffusing tense situations. There are several ways that a manager who has been tasked with this daunting assignment should follow to effectively cope with negative emotions that may accompany a layoff. 

One of the most critical considerations entails embracing a detailed communication plan. The manager should conduct an in-depth groundwork, document it and have all the necessary justifications as to why the employee is being laid off. The reason for termination or dismissal should be precise and to the point. Most lawsuits that emanate from layoffs are propagated by the fact that the grounds for dismissal are vague which can result in negative emotions. The staff exiting feels more dignified when they understand the cause of the dismissal. During the termination session, try to use a language that does not blow out a person’s ego but one that preserves their dignity. 

Effective Communication is needed not only to the exiting employee but also to the rest of the staff. When a layoff is conducted, it emits an emotional wave to those who remain at work. Therefore, a good manager should know how to deal with the aftermath of an employee’s dismissal. Managers should quell gossip and rumors, help staff to stay focused and productive and most importantly reassure the employees that former colleagues were treated with utmost respect and professionalism. The management should anticipate the remaining employees’ reaction and respond to those feelings and responses in the best way possible to help the team move forward. 

Termination of employment may cause tension in the transition of work. The most important aspect after a dismissal for a manager is maintaining morale and motivation of survivors. In some cases, a task that was left by the dismissed employee might be viewed as difficult or impossible. A good manager should ensure that the business remains a going concern. Managers should step up to provide a proper handover of roles by being visible, redesigning processes and tasks, asking for input, reassigning roles and responsibilities, monitoring progress and above all put up a contingency plan to handle setbacks. 

To facilitate a conducive environment in a termination meeting, it is imperative to come out with a detailed systematic process; 

Plan the location and the attendees. A suitable place is one that guarantees utmost privacy. In addition to the employee, you can include an HR representative, the employee’s direct supervisor and maybe an additional neutral witness to quell emotions that may arise. 

Make sure to prepare a list of items to be returnedand develop a checklist or any other documentation that may be of use during the meeting. 

Get straight to the point during the termination meeting. Vividly explain to the employee the specific reasons for termination and avoid lying as it might lead to trouble later. 

Be prepared to face any emotions that might emanate during the session. The employee may turn upset, confused or even angry. The employer has to maintain calm but humane as possible to avoid crushing his ego. The employer should just stick to the facts. There is a possibility of questions from the employee. The employer should answer them in good faith and be careful not to engage in any contentious issues. 

Explain the employee’s benefits and rights. For instance, there might be an option of appealing the dismissal maybe within twenty-one days. It is the opportunity to give information of all the benefits that accrue to the employee due to this layoff. For example, pension benefits, the continuation of insurance, severance package among others. 

The confirmation of the employee’s obligations . The employer reiterates the employee’s obligations such as the employee might be required to return some company stuff for him to access his benefits. After this, formally end the meeting. 

Certain benefits and compensation accrue to an employee after separation. These benefits vary depending on the reason for layoff, government regulations, company policy and the terms of employment on the contract. Some companies sanction layoffs because of restructures and downsizing and therefore they might decide to give their ex-employees a severance package. In other situations company policy and government, regulations might require an employer to honor certain obligations as unemployment insurance benefits, continuing health coverage, and vested retirement benefits. In most countries, employers are obliged to pay the employee a one-month salary in lieu plus the unused leave days for cases of termination with immediate effect. There are also situations where an employ is laid off based on medical grounds and a such an employer may have to continue paying the employee half salary until he or she attains the retirement age. 

In our fictitious company, our form of compensation that we will relay to our laid of employee will be a severance package. The severance package will be half a month salary pay for each year of continuous service the employee had with the company up to a maximum of twenty-six payouts. The employee was earning a salary of $5000 per month, he has been laid off at the age of thirty years and his last year of service is fifty-five just in line with the retirement age of our country. The payments will be made quarterly until the last check. 

The actual implications of a lay off may be detrimental in the short run and positive in the end for a company. An organization should deeply evaluate itself and make all possible consideration before they decide to layoff. One of the short run implications is the cost effect. Employers may have to incur the cost of paying severance and benefits to the employees. This might affect the company profitability for a financial year in a case where there are massive downsizing. The organization will have to deduct from its revenues the cost of the benefits. Other cost implications would include the cost of training others to take up the previous roles. However, this might eventually turn out to be a benefit in the long run as the company would have cut on staff cost. It may result in restructuring and transformation of the operations of the company to ensure that the number of staff left in the organization is sufficient to handle the previous work. The organization might consider acquiring new technological feasible ways to run things to reduce the workforce. 

Layoffs have a direct effect on employee/ customer loyalty and trust. Layoffs may cause insecurity for the staff that are left behind; they might start thinking that their job is not guaranteed having seen their colleagues leave. It might result in a lot of uncertainty and may prompt other to start looking for jobs elsewhere rather than concentrating on their current roles. There is a possibility of losing significant customers as they try to build relationships with new people. Trust takes some time to build and therefore there might be a period of decreasing revenues as the employer is trying to rebuild trust in his employees. Layoffs usually imply that the company is struggling and that’s why it is downsizing thereby directly undermining trust in its customers. 

Other than the direct cost involved in paying out benefits, there is also the aspect of an indirect cost of replacement and transition. An employer is left with an uphill task of ensuring the proper handover of duties. It may deem necessary to train replacements. Managers have to take time and break the news, assemble pending work, relocate the work to the remaining employees, train survivors and to adequately handle other issues that may arise due to lay off. This process eats into time and not forgetting that layoffs directly hit staff morale and in the short run, it might adversely affect the operations of an organization. 

In conclusion, employment dismissal is a sensitive issue to employees and the organization at large. The process requires consultation and should be in a way that least affects the going concern of a company. It should be fairly just and necessary to minimize the overall effect on the individual affected and the organization at large. When it is done professionally, it minimizes chances of unforeseen lawsuits. Ex-employees should feel that the process was fair and this minimizes the chances of them bad-mouthing their previous employer. What really matters after a layoff is how the management handles the aftermath and how they ensure a successful transition.