Employee Dismissal

Graphics courtesy of My HR ToolkitOpens in new window While no one likes to be the bearer of bad news, managers and leaders are sometimes faced with the difficult task of having to dismiss an employee whose performance just can’t be brought up to par.

Unfortunately, dismissing employees is a fact of organizational life. Managers who shy away from learning about dismissals risk handling the situation badly. The more you know about dismissing employees, the better prepared you’ll be to handle the situation if it arises.

Defining the Term

The Table X-1 Dismissal attributes summarizes the main attributes of dismissals.

Organizations use different terms for dismissing an employee. Examples include firing, terminating, letting go, sacking, and discharging. Often one company avoids a term used by another. In addition, some terms do not cross cultures meaningfully. For these reasons, we have chosen to use the generic term dismissal throughout this topic.

Why Learn About Dismissals?

For many managers, dismissing an employee is the most difficult and painful decision they must face. Emotions run high.

A manager wonders how he or she could have prevented this uncomfortable outcome and what the legal ramifications might be.

The manager also wonders how colleagues of the dismissed employee will react and who will handle the workload afterward. In addition, managers often worry whether the dismissal had anything to do with their own performance or behavior.

But despite the intense discomfort that comes with dismissing an employee, it’s vital that you handle this task correctly. A poorly conducted dismissal can carry immense costs, it can:

For these reasons, you need to take steps to ensure that you handle a dismissal professionally and correctly. That means gaining familiarity with every aspect of dismissing an employee—from how to make the decision and prepare for the dismissal meeting to what to say during the meeting and how to lead your team afterward.

Types of Dismissals

There are three types of dismissals: layoffs, downsizings, and firings.

1.     Layoffs

The phrase being laid off tends to suggest that a person has been dismissed temporarily. Layoffs are also referred to as reductions in force and occur when an organization does not have enough work to justify keeping, for example, its production employees.

These individuals may be recalled later when economic conditions improve. Layoffs are cited by many organizations as needed to improve profitability, although research suggests they do not, in fact, improve profits.

2.     Downsizings

A downsizing is a permanent dismissal; there is no rehiring later.

Downsizing is a common organizational practice, usually associated with economic downturns and failing businesses. Cutting jobs is the fastest way to cut costs, and downsizing an entire store, branch, or divisions also frees assets for sale possibly during corporate reorganizations.

3.     Firings

Being fired, terminated, separated, let go, sacked, axed, or canned tends to mean that a person was dismissed permanently “for cause”: absenteeism, sloppy work habits, failure to perform satisfactorily, breaking the law, and the like.

Today, because of the changing legal climate, leaders and their organizations must take steps to avoid employees suing for “wrongful termination.” That is, an employer has to carefully document the reasons for dismissals. Managers need to take into account the fact that survivors in the organization can suffer just as much as, if not more than, their colleagues who were let go.

Four suggestions for handling a dismissal are:

• Give the employee a chance first. If a manager is dealing with an employee who has a problem with absenteeism, alcohol/drug dependency, or the like, the leader should articulate to that employee what is wrong with their performance; then set up a plan for improvement (which might include counseling). It is a good idea for leaders to get help from the organization’s HRM professionals.
• Do not delay the dismissal, and make sure it is completely defensible. If improvements are not forthcoming, leaders should not carry the employee along because they feel sorry for them. A manager’s first duty is to the performance of the organization. Managers should make sure, however, that they have documented all the steps taken in advance of the dismissal.

• Be aware how devastating a dismissal can be. To the person being let go, the event can be a devastating blow. Managers should be compassionate but not emotional, and allow some silence to give the employee time to react.
  
  Dismissals can also adversely affect those remaining with the organization, who may feel guilty for not being fired, fearful of being fired, or worried about having to take on the fired person’s workload.
• Consider the timing. It is believed that the best day to lay people off is not Friday (the traditional day, when often managers did not want to deal with other employees’ reactions) and not Monday (when managers may not have time to prepare for the aftermath) but rather the middle of the week, which gives former employees a chance to look for work before the week is over.

Taking a Closer Look at Dismissals

When do dismissals occur?

Dismissals occur whenever a manager decides that an employee’s performance or behavior is hopelessly problematic. In some cases, an employee outright violates a law or a company policy (for example, by stealing or by sexually harassing another employee) and is dismissed immediately.

In other cases, the manager has worked with the employee over many months to try to address performance or behavioral problems, but these efforts have not succeeded. In general, you, the manager, would decide whether to dismiss an employee. You would also be the one to deliver the news.

What emotions are associated with dismissals?

For most managers, dismissing a problem employee generates a feeling of relief. That’s because dismissing usually solves the problem at hand. However, some managers may feel a sense of failure because they see themselves as responsible for being unable to improve matters.

For employees who are dismissed, feelings can range from anger, sadness, and resignation to shame, frustration, rage, or even relief—depending on the individual involved and the circumstances surrounding the dismissal.

Workers who remain may experience strong emotions as well, depending on their relationship with the dismissed employee. Friends and supporters of the former team member may feel angry. Those who felt frustrated by the dismissed person’s poor performance may feel relieved.

What are the legal implications of dismissals?

Dismissals can happen in any organization and in any industry. However, dismissal regulations vary widely internationally. Laws and company policies governing dismissals are complex.

Various forms of employee status—such as exempt versus nonexempt or union versus nonunion—add to this complexity. A general awareness of these implications can help guide you when dismissing an employee.

How effectively do dismissals solve the problem?

Dismissals usually solve the problem at hand—whether it’s poor performance on the employee’s part or problematic behavior that severely disrupts team performance. However, sometimes dismissals stem in part from a manager’s failure to give timely and sufficient feedback and support to the problem employee.