Having to let an employee go is likely to be one of the most difficult decisions you’ll ever have to make. The simple fact is there is no easy way to part company with someone who has worked for you for a long time. But, with the economy struggling it is something more businesses are having to do.
In fact, even if they are a short term employee you’ll want to handle this process carefully. It’s an opportunity to reassure your other staff that their jobs are safe.
Consider All Employees
Before you let an employee go you will have come to the reluctant conclusion that their job is no longer viable or needed. There are many reasons why this could be the case. But, the real concern at this stage is how your other employees will react.
Getting rid of a member of staff undermines the morale of the rest of the team.
That’s why you need to show the other staff that you did the best you could for your employee and that their jobs are safe.
This starts with identifying the potential issue before anyone is let go. Explain the problem, whether it be financial or another reason.
Give your staff the opportunity to come up with a viable solution. You also need to be upfront with them if there is the possibility of using temporary labor in the future. Agencies such as this specialist in labor hire, Sydney provide short term workers which can help cash flow.
The more information your employees have the easier it will be for them to believe their jobs are safe.
Adopt The Process
You should have a written process for terminating employment in your company handbook. It’s important to follow this and to make sure all staff knows you are following this. Not only will the person affected have some warning it will reassure your other staff that you do respect the procedures and will treat everyone fairly.
In short, you’ll be showing them that you don’t want to let anyone go, but sometimes you have no choice.
Severance Pay
Regardless of the situation make sure you pay your employees severance pay. It should include anything they are owed and a little extra can help. Not only will you be reducing the risk of an expensive employment tribunal, but you’ll also be showing how fair you are as an employer.
Feedback
Make sure the employee who is leaving knows exactly why this is happening and give them plenty of feedback along the way. This will help them to understand and give them every opportunity to come up with an alternative.
Remaining calm and kind is beneficial to you, the remaining staff, and you never know what will happen in the future. You should also offer the employee all the support you can in locating a new role.
Explain Yourself
Finally, when the employee has left, make sure you explain the process and reasons to all other staff. Don’t let the workplace gossip spread and damage your hard work. You’ve had to let someone go, done it fairly and kindly, make sure your remaining staff knows this.