How to Lay Off Employees and Save Face in the Process

As economic times get tight some solopreneurs may find themselves in the position of having to decrease staff. This can be very difficult for everyone involved so we’d like to offer some heartfelt advice but, before we go any further let’s set some basic ground rules:

• Letting people go is never easy (read: it sucks)
• Despite your best efforts they will take it personally (read: they will hate you, despise the company and most likely will disparage you every chance they get)

That said let’s begin.  When you have to let people go it is on your shoulders to do the dirty work, own up to your responsibility and you inform the employee personally.  Using a hatchet man is not a cool idea.  Also, please avoid doing one of the dumbest things possible- letting them go at the close of business Friday with the idea being they can decompress over the weekend.  That is ridiculous.  Instead, let them go the first thing Friday morning so they won’t feel used before termination.  I’ve seen people get let go on Friday afternoon and can say with almost no exception their general mindset is always like, ‘geez… at least they could have let me go early so I could have the day off!”  In case you don’t agree try to put yourself in their shoes and ask yourself how you would feel?  Is getting another eight hours out of them worth it?

Warning: this next part is a rant.  If you are one of those sick people who delight in firing people, do us all a favor and fire yourself and seek professional counseling.  Heartless people like you are vile and should never be employed by anyone else.  When you fire someone realize that you are affecting them on several levels.  Their self-esteem will be shattered, they lose their income (most likely the have dependents), and now have to start over again. The very least you can do is try to preserve their dignity.  For the record I have been fired, to this day I will not recommend any of my former employers. Would you? And I have been in the position of having to fire staff, which is one of the hardest things I’ve ever had to do.  Please allow me to share with you the best lesson I’ve ever learned about how to let someone go. (I feel much better now…)

When I was in the investment business I got to know some of the executives.  One executive had a rather unique way of laying off people, one that I still use to this day (if needed which fortunately is not very often).  Whenever he had to let a quality employee go due to a downturn in business, he would call them into his office, explain the situation and then let the hammer drop.  So what’s different? Here is the twist- he would not let them go immediately; instead he told them to go look for another job, when they found one they would part ways.  Or put another way, he would say something to the effect of,  ”I’m sorry but I need to let you go since things are slow. You can stay here and work while you interview, just tell me if you are going on an interview so I know where you are.”  He would then carry that person on the payroll until they found something else. 

If the person was really bad (read: crappy worker) he would give them a two week notice.  He would allow the person an additional two week “grace period” before they were officially let go. During the two week period the employee could work or interview as long as management was in the loop.  At the end of two weeks the person was officially done no matter if they found a job or not

So why did he use this method?  He realized the value of word-of-mouth and how negativity can impact any business.  Instead of doing things “by the book” and letting someone go, he would preserve the person’s dignity by giving them some time before dismissal.  He knew that a terminated employee would rip the organization every chance they got, so he would opt for the “easy let down” with the hopes the person would not say anything derogatory about the company.  Unorthodox, yep.  Worth it… you be the judge.