Common Mistakes Managers Make When Terminating Employees

Terminating an employee, whether for performance or financial reasons, is probably the least favorite part of your job. Most people like to avoid conflict – not tackle it head-on. Unfortunately, most managers will have to terminate an employee (or two or more) during their career. We can’t make the process painless but we can help you avoid some of the most common mistakes managers make when terminating an employee.

Clear Message: Be kind and respectful to the employee but don’t beat around the bush during the termination meeting. Be direct and let the employee know that you’re terminating the employment relationship. Don’t use words like “change” or “different direction”. These terms may lead the employee to believe that they’re being re-assigned or that their job duties are changing. Confusion doesn't help the employee or you.

Avoid Long Delays: Don’t unnecessarily delay the inevitable. If you’ve made the decision to terminate an employee, it doesn't do you or the employee any good to delay the process. Indeed, if you delay without reason something might happen that’ll make the termination risky or that’ll require you to keep the employee (e.g., the employee gets injured on the job or files a complaint about unlawful treatment).

It Shouldn't be a Surprise: If you have properly addressed the performance problems or insubordination leading up to the termination then the employee shouldn’t be surprised by your decision. Have you put the employee on an improvement plan or have you given the employee a written warning? If not, you may want to do so prior to termination.

Don’t Make it About You: Don’t spend time talking about how bad the decision makes you and other managers feel. Let the employee know that you’re sorry it didn’t work out and provide them with the reason for termination so that they don’t come up with one on their own. Enough said.

Plan Ahead for the Meeting: Don’t think that you can just handle the termination meeting without preparing for it. You’ll need to decide what you’ll say, what documents you must have ready for the employee, and how you should arrange to provide the employee with their final paycheck. Unprepared managers are much more likely to say something they shouldn’t, forget to have the employee sign the required paperwork, etc. This’ll make the termination very risky for the company.

Avoid the above mistakes to help make the termination process easier on you and the employee. No termination is entirely risk free; however, if done correctly and with forethought, the risks can be significantly reduced.

© 2013 ePlace Solutions, Inc. October 2013 Newsletter

PEOs By The Numbers

1. Master policy clients of a PEO average 9.7 employees, while multiple coordinated policy clients average 6.7 employees.  By contrast, the average number of employees for non-PEO policies is 19.4.
2. PEOs represent 1-2% of all payroll
3. In Florida, it is 6% of the market
4. Five PEOs make up 48.8% of the overall PEO market
5. PEO loss development is less for PEO’s then standard market.  For large deductible clients, 1.278 at 42 months versus 1.41 for the non-PEO business
6. Approximately 90% of PEO client companies are not large enough to promulgate an experience modification
7. PEOs have had comparable or lower loss ratios

Via: Industry Leaders Meet With NCCI | Chief Economist Provides Positive Update on the PEO Industry

The ADA Interactive Process in Five Easy Steps

Jill has worked for as a cashier for two years but she has had ongoing performance problems. As you talk to her about it, she tells you the reason she cannot perform a certain task is because she has a disability. You are not sure what to say next, afraid to say the wrong thing but concerned because this task is an essential function of her job. There is no need for concern, the next step is simple. Go through the interactive process that is required under the ADA. Follow these steps and you’ll find the process is easy.

1. Talk with your employee. Ask them how their disability affects their ability to perform the task in question. Do not ask about diagnosis, only how job performance is affected.
2. Ask what accommodation they think is necessary so they can perform the task. If the information they provide is insufficient or they do not have an answer, you can ask them to have their doctor complete an assessment of their disability as it relates to their job functions. This includes asking what the doctor suggests as an accommodation.
3. Determine if you can make the accommodation. The employee must be able to perform the essential functions of the job, but there are usually always ways to accommodate. For example, moving less essential parts of the job to another employee, changing a shift, providing lifting assistance, or a chair. Most accommodations are easily accomplished and two-thirds cost less than $500, with many costing nothing at all.
4. If you cannot provide the requested accommodation, you can make a suggestion for an alternative modification which will allow the employee to perform the job. The provided accommodation does not always have to be the one the employee requested but it does need to allow them to perform the job.
5. Come to agreement on the accommodation and implement. Document your conversation and the outcome with the employee for your confidential file.

If you reach a point where you feel you cannot accommodate the employee because doing so would be an undue hardship, you are encouraged to talk with an HR professional or employment law attorney before proceeding. Undue hardship is very difficult to prove and we do not encourage taking that approach.

Follow these simple steps and get professional assistance when needed. Remember that the interactive process is a conversation with your employee; do not make it harder than it needs to be!


© 2012 ePlace Solutions, Inc.

Avoiding a Claim: Reduce Your Risks by Taking These Steps Before Terminating an Employee

Making a mistake when firing an employee can result in a wrongful termination claim. The four steps outlined below can help guide you through the process and reduce the likelihood of a claim.

Step One: Conduct a Pre-Termination Analysis
A pre-termination analysis requires you to carefully think through your decision to terminate a particular employee. Oftentimes, the process exposes a potential risk that you had not reviously factored into our decision. Review the employee’s employment history to identify any “Red flags”. A red flag would be any fact or characteristic that tends to make the termination risky. For example, has this employee complained of harassment, discrimination, working conditions, wage and hour violations, etc.? The termination is risky whether or not the complaint has merit. Also, consider whether the employee is a member of a protected class (e.g., gender, race, age) or if the employee has taken a medical leave. Any of the above circumstances may encourage an employee to file a claim after termination.

Step Two: Get Professional Help, if Needed
If the employee you want to fire is in a protected category identified in Step One, you should consult with an HR professional or attorney prior to taking any action against the employee.

Step Three: If No Red-Flags, Complete Required & Recommended Forms/Polices
Processing a termination can be confusing. The law requires that certain forms and procedures be followed. Both federal and state laws apply to the termination process. Be sure to consult your individual state’s laws prior to terminating an employee.

Make sure you understand the following:

•  Final paychecks
•  Acknowledgment of final paycheck
•  COBRA/HIPPA notifications and information
•  Any unemployment forms
•  Change of relationship form
•  Return of company property

Step Four: Final Review
As a last step, review all the paperwork and notes that you have regarding the termination and then document your final review. The purpose of this step is twofold: one, you can verify that all the required procedures have been followed and two, you will have one last opportunity to document the steps that you have taken to minimize the risks of the termination. 

No termination is completely without risk; however, you can mitigate the risks if you follow the steps above.

© 2013 ePlace Solutions, Inc October 2013 Newsletter

How Does the Shutdown Effect Employee Benefits?

With the launch of the new health insurance exchanges; open enrollment; and now, the federal government shutdown, an already confusing time of year for benefits managers has been made even more challenging. As of Oct. 1, federal government offices have been short-staffed or closed, leaving employers and employees with more questions than answers.

Jill Collins, an attorney at the law firm Mintz Levin in Boston, outlined key points regarding employee benefits and the shutdown. Click Here to view these points covered in the SHRM Article, "Shutdown Has Limited Impact on Employee Benefits—For Now."