Friday, 23 May 2008

How to Fire People (MD's Handbook III)

A couple of years back I was watching The Simpsons with my daughter who was then 6 or so. Mr Burns was in the process of firing Homer. The daughter watched Burns do his stuff and then looked at me.

"How many people have you fired?" She asked.

"Thirteen." I said.

The number is way higher now. Just a fact of life. People get fired. My job means that I am often the final line in the process so my batting average is high. Martyn's is higher. He is the line in the sand before me.

The majority of our ex employees who have left against their preferences have gone for effectively dismissing themselves. Persistent failure to simply show up for work. That sort of thing.

We have made our fair share of serious, structural, sometime very senior executions though, and these are expensive if you get them wrong!

Here's my advice:

Do it legally.

Whatever country you are in, there are rules about this. So play it by the rules.

Why?

Because it will cost you less than breaking them. Here in the UK if an employer fails to follow the statutory dismissal procedure any subsequent unfair dismissal claim will be upheld. You won't even get before the beak. You just lose. And it is VERY expensive. I know of one local company who found out the hard way at a cost of around GBP100k for 2 cases.

And legally sometimes means slowly! And sometimes means that under performer in question may well turn the game round and save themselves.

Secondly. Do it strategically. Think about it. Plan it. Think about it again. Execute. Cool head. Calm hand.

Thirdly. Do it before it is too late. If there is someone who has to go try not to beat around the issue for six months while the situation gets worse. They might just cost you a whole load of money in the mean time. I speak from experience: Grow some stones and get on with it.

Fourth. Get your story straight. There are reasons why you want to fire someone but this won't allow a decisive hand within the law. Is there another reason? Can you restructure them out? What is the room for manoeuvre?

Make sure the reason you think you want to fire someone is a reason for which you CAN (legally!) fire someone. There may have to be a certain amount of legal smokescreen involved to reach the desired endgame. Keep point two in mind. Cool, calm, consistent.

I have shot some big beasts in our organisation when necessary. Senior managers and Directors. Once or twice people who were considered fireproof cornerstones of the company history. But there are times when you reach a fork in the road and there is a path with that person remaining and a path with that person removed. On every occasion the person involved was treated with respect and rigid application of the law.

It has never cost more than it should have or could have.

I do not regret a single execution.

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