So your star employee has started slacking on the job. Deadlines are being missed, projects are incomplete, and attendance is low. Before pulling the trigger and terminating that employee, be sure you develop an unbiased, fair evaluation and reduce your liability.
Conducting performance-based terminations that follow a progressive process of penalties for repeated bad behavior are the best way to protect yourself and your business.
Tips to protect your business from a termination lawsuit:
Write down everything
If you don't write something down, it can be argued that it didn't happen. Even informal conversations written in a notebook can be helpful and considered documentation. While it may seem time-consuming, doing so can be important should you have to defend your decision.
Be clear about expectations
Every job should have a job description or a solid overview of the functions and responsibilities of each role on your team. You, and your employees, should also know what it takes for employees to be successful in each role. By clearly defining each role, it is easier to pinpoint and correct issues that arise.
Be a good coach
Both new and existing employees need informal feedback to understand how they are performing. Doing this may help resolve issues well before you get to the point of considering disciplinary action or termination.
Initiate a work improvement plan
If you are still seeing major problems with performance that the coaching can't change, it might be time to develop a written work improvement plan.
Your plan should explain specifically where the problem areas are and establish detailed goals for correcting them. In some cases, one-on-one counseling might better help the employee, while other cases might need a written plan.
This could help with addressing issues like attendance, communication and other behavioral issues by stating exactly when the employee is expected to arrive at and leave work.
For more skills-based issues, a plan should include suggestions for increasing skills and be given an appropriate timeline. For example, if the employee is having grammar and writing issues, suggesting they complete a business writing class might be part of their plan.
As always, document the conversation and have your employees sign an acknowledgement form to confirm that they understand. It is also good to hold follow-up meetings to provide feedback on what they are doing right and what they are doing wrong.
Conduct a written counseling
After implementing the measures listed above, if you are still having problems with an employee, you may need to move to a written counseling. Be sure to detail specifically what needs to improve and how this should be accomplished.
Employees should sign this form after you've discussed it with them to indicate that they have received the counseling.
When all else fails, terminate employment
If despite all of your efforts, you still do not see the improvement you expected or required; the only option left might be to sever the relationship. Since you've clearly documented all the steps taken to help the under-performing employee improve, a performance-based termination should not come as a surprise to your employee. Prior to terminating your employee, be sure to review all documented files, review any employment contracts, and contact your legal counsel or HR representative to ensure your case is supported, justified and sound.
So, now that you are ready to release the employee, you are probably wondering when the best day or time is to have this kind of conversation?
In releasing employees, you should be honest and not disguise a performance-based termination as a "layoff" or request the person to resign. There is no "good" time to have the conversation, but you should not let it linger throughout the week.