Employee termination is a sensitive and consequential decision for leaders, impacting both the individual being terminated and the broader organization. While termination may be necessary in certain circumstances to address performance issues, misconduct, or organizational restructuring, it also raises ethical considerations regarding fairness, dignity, and compassion. This article explores the complex dynamics of employee termination, offering insights into termination criteria, ethical considerations, and best practices for conducting terminations with integrity and professionalism.
If you have ever been terminated from employment, it is not pleasant. If you are a leader and ever had to terminate an employee, it was also not pleasant. However, termination is an event that you will have to act upon at some time in leading others. Leaders should consider not only the legal ramifications of firing someone but also the ethical and team impact as well. Firing an employee has financial costs regarding severance or pensions, and it has legal costs if it is not done correctly. Not firing an employee also has costs to teams, production, customer service, and organizational culture. Let’s learn how to do it right.
Sources for this article:
Cascio, W. F., & Aguinis, H. (2011). Applied psychology in human resource management (7th ed.). Pearson/Prentice Hall.
(2023) How To Terminate an Employee (And What Not To Do). Indeed Editorial Team (accessed on 24 April 2024 at https://www.indeed.com/career-advice/career-development/how-to-terminate-an-employee)
Understanding Employee Termination.
I had a general officer ask me when a leader should get relieved of command or duty? Is it only in circumstances where wrongdoing is proven, or in other words, a criminal or immoral act was committed? My response was simply that in cases where someone makes critical mistakes over and over again, it is necessary to remove them. Termination is not reserved for just misconduct or criminal behavior. It is the easiest to aid our decisions, but leaders need more than one criterion to successfully navigate this topic. With that in mind, I want to begin looking at when you should terminate an employee.
Termination Criteria:
Incompetence. Persistent underperformance or failure to meet job expectations despite remedial efforts and support. The remedial efforts are a key item that we will discuss later. Look for repeated instances of missed deadlines, errors, or quality deficiencies that impact organizational goals and outcomes. Cascio, W. F., & Aguinis, H. (2011) discuss having acceptable characteristics for employment and minimum requirements to qualify for the job.
Insubordination. When there are repeated related issues such as dishonesty or breaking company rules. You might think this is similar to misconduct, however, I am categorizing this to include disloyalty and a general sense of disrespect to others that might not cross over to criminal or illegal. Many know how to skirt the legal gray area and you may need to terminate an employee that isn’t legally wrong, but still disloyal.
Attendance or Appearance. Similar to incompetence but slightly different. This employee may know their job well but may have hygiene issues or time management problems, such as frequent absences or chronic tardiness. Just as for incompetence, termination of employment is held until after all opportunities to remedy their faults are exhausted. Another topic that may skirt the misconduct or insubordination line but doesn’t always go that far.
Misconduct. Violation of organizational policies, codes of conduct, or ethical standards, such as dishonesty, harassment, or workplace violence. Criminal behavior or serious breaches of trust that undermine the integrity and reputation of the organization. Sexual harassment and other discriminatory behavior in the workplace. Physical violence or threats against other employees are all factors that should have zero tolerance.
Organizational Restructuring. Changes in business needs, market conditions, or strategic priorities that necessitate workforce reductions or realignment of roles and responsibilities. Mergers, acquisitions, or downsizing initiatives that result in the elimination of redundant positions or departments. Remember that if the organization fails, everyone loses a job, so although it might be difficult to terminate someone on this basis, it may be necessary. Also, remember that this should not be used as an excuse to fire someone without cause. It can result in legal troubles especially when you turn around and hire a new employee for the same work.