The following points should be considered when you first identify that an employee has a performance problem or anytime you are considering terminating an employee. Keep these points in mind whenever you hire someone. Then, if you find yourself facing the need to terminate someone, the process will be much easier.
Review your company polices, handbooks, employment offer letters. Make certain that there is nothing that specifies length of employment or indicates employment lasts "as long as performance is satisfactory" or something similar. Note also, that some states consider employment is "at will" (i.e., of indefinite duration) unless there is something that indicates otherwise. If you have questions about employment laws in your state, contact the state unemployment agency for further information.
If you have written company policies, follow them. If you find that you are always making exceptions to the rules, then change the rules.
Develop reasonable standards of conduct and provide them to your employees in writing. They should be written in simple, straightforward language. You should also have your employees sign an acknowledgment that they are aware of and have read your company policies and standards of conduct, that they agree to follow the rules you have established, and that failure to follow such rules can lead to discipline up to and including termination.
As soon as a performance or discipline problem crops up, start documenting your communications to your employee. Generally, it is best to follow a progressive disciplinary process: verbal warning, written warning that job is in jeopardy, and then, if necessary, termination.
Anytime you are notifying an employee that their job is in jeopardy it should be in writing. If possible ask the employee to sign the memo. If they refuse to sign, this should be noted on the memo. It is a good idea to have a witness participate in these type of disciplinary counseling sessions, if at all possible.
If you plan to provide employees with periodic performance evaluations, they should be fair and honest. Let them know where they are doing well, where improvement is needed, and what the outcome will be if they don't improve.
Know the steps you need to follow in the termination process and make your plan when necessary.
Have someone conduct an exit interview whenever possible. These discussions can be an excellent way to improve the work environment for other employees.
Always preserve the employees' dignity and keep all discussions confidential. No matter how angry you may be, treating an employee with respect and dignity during the termination process is good manners and good business sense.
Document the termination and refer to this memo whenever you are asked questions by a state or federal agency. You should communicate the facts consistently and honestly anytime you are asked, keeping in mind the importance of confidentiality.
