It is never a pleasant business to terminate employees. Nonetheless, the prospect presents itself and you must take action. If the termination is for “cause,” you must take great care must to keep from making a bad situation worse. There are books and articles available to guide a manager through this sticky problem.

Sometimes it becomes necessary to layoff employees for economic reasons. While this presents a different set of problems, you still must handle it delicately. The bruised feelings of the former employee may express themselves in ways that damage the business.

Problems Can Arise When You Terminate Employees

The decision to terminate employees raises several different issues. How will the termination affect customers or clients? You must contact them to let them know they can expect the same quality of service they have always enjoyed. It is unsettling for a customer to find the friendly employee he or she always worked with is no longer there.

When it becomes necessary to fire someone, another question you must ask is, “How will this affect the remaining workforce?” When a coworker gets fired, rumors spread like wildfire. Most employees think, “It could happen to me.” You may need to reassure them and calm their fears. It is a mistake to assume that by terminating one employee, the others will increase their productivity. Worried about their job security, these employees may unconsciously decrease their productivity.

There are external forces at work here as well. There are federal, state, and local laws that regulate employee termination. When you decide to terminate employees, you should brush up on these laws. If you do not, you may be inviting a complicated lawsuit.

If you fire employees because of downsizing, keep the all workers informed. Once you fire one set of employees, the business needs might require more layoffs. If this is the case, let the employees know they will get plenty of notice before the next wave.

Also be aware that terminated employees may act irrationally. You may need to change locks and security codes. In short, a great deal of thought and preparation is necessary before you terminate employees.

More terminate employee tips.