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Remedial measures are normally implemented: performance appraisals are reviewed; the CEO or supervisor has a heart to heart chat; goals, objectives and performance measures are reemphasized; less demanding positions are considered; and job related training is pursued.

However, the CEO may eventually conclude that the individual must be let go.

This article is not relevant where terminations are conducted under a collective agreement or where there is an employment contract with defined termination provisions. Nor should the following be taken as legal advice. It is however based on long experience and may be of value to recently appointed EDs and CEOs.

In some cases the employee has caused the problem, but in many cases he or she is blameless - the victim of a changing environment. Dynamic associations constantly reinvent themselves, taking on new programs, offering more complex services and broadening their membership base. The following examples are indicative.

Examples Where Termination Makes Sense

Joanne is the senior finance officer in a small association with an annual budget of $1,000,000. The association is entrepreneurial and develops a new range of member services. Over a few months, revenues increase fivefold and more complex systems are needed to manage onerous reporting requirements. Joanne begins to lose control, but says nothing. Accounts receivable begin to mount and cash drops below a prudent threshold. The CEO perceives a disaster in the making and decides that more sophisticated financial management skills are required urgently.

Sometimes the Peter Principle is at play. Mary is promoted to the position of Secretary to the Board, among other duties, but immediately causes embarrassment with late circulation of board documents and poor minute taking. It is clear she was promoted once too often. She is frustrated, but she is not willing to return to her prior position fearing loss of face. The Board is also frustrated. Faced with few options, the CEO decides that Mary must move on.

Henry has been responsible for IT for several years, but decides he wants to get out into the world and following an internal competition, takes on responsibility for member relations. The CEO soon learns that members are unhappy. Henry, it turns out, is relates well to technology computers, but not to people. To quell the complaints, the CEO decides he must let Henry go since his IT job has already been filled.

Bill has many years of distinguished service, but of late seems to have lost interest and is simply not performing. All efforts to get to the bottom of the problem have failed. Other employees are resentful that they have to cover for Bill, even though his pay packet is bigger than theirs. Morale suffers. Bill must move on.

The Exit Meeting

All of us who make these decisions do not look forward to the exit meeting. I myself have allowed some situations drag on for longer than necessary for this reason. But in such cases, the real loser in a slow response is the person who is not measuring up. Employees who are not performing are generally unhappy and frustrated. More often than not, being let go comes as a relief. For the most part, a termination brings benefits to the dismissed employee: he or she can define and build a more satisfying career better suited to his or her competencies and interests. A burden has been lifted and the future is free from constraints.

Over the years, I have developed several operating procedures that have made things easier for both the employee and employer when the moment of truth arrives.

I have acted only when I am persuaded there is no reasonable option and when I am sure that termination is best for both the employer and the employee.

Only once, when I was much less experienced, I attempted a “for cause” dismissal. It was simply not worth the effort. As we expected, legal proceedings ensued and although the judge found in our favour (something that happens rarely), energies that should have gone into productive activities were dissipated and the association endured heavy legal costs.

The Case for Legal Advice

An employer contemplating dismissal should obtain legal advice from a law firm that specializes in labour law and whose practice serves employers, not employees. The key question is how large a payment in lieu of notice would a court deem to be fair and reasonable? Many variables come into play.

I have always done my best to be generous with the dismissed person. It is in the interest of both parties that the problem be resolved quickly. You must pay out unused vacation with cash and the compensation should include most benefits.

It is prudent in my view to offer somewhat less than you are willing to pay in order that the lawyer for the dismissed person can justify his or her fee. This is the drill: you make your offer, the dismissed employee’s lawyer writes to you arguing for more, and you counter offer at the point you had in mind from the start: it’s a win-win-win.

I have always offered first class outplacement support. It is in everyone’s interest that the dismissed employee finds a new and satisfying career quickly. To the best of my knowledge, every employee I let go found a path forward to a new career, normally transitioning to a position more suited to his or her talent, and offering higher compensation and job satisfaction. Dismissal focuses the mind and stimulates personal reflection. For some people, it is cleansing and therapeutic.

You should conduct the exit interview late in the day and early in the week. You want the individual to exit with dignity, hence after closing hours. Early in the week increases the likelihood that the individual’s support network is close at hand. You should ask another staff member to be present as a witness.

A perfect exit interview takes two minutes. It goes like this: “A management decision has been taken to terminate your employment. To assist your transition to a new career and to compensate for lack of notice, we are offering financial and other benefits as defined in this letter. We recommend that you obtain independent legal advice. We will make arrangements for you to return to the office at a mutually convenient time to collect those personal effects that you are not able to take with you today. For your own protection we must collect your office keys now. Your office email account is no longer available. An outplacement specialist is waiting to meet with you now. We have retained this service to help you with your career transition. We thank you for your contribution and wish you every success in your transition.”

That is all. There is no discussion, no explanation and no conversation. At this point you and your witness leave the room and the outplacement officer enters. His responsibility is to explain briefly the services available, to give assurance that other opportunities will arise, and to ensure the individual arrives home safely. Taxi chits are normally offered.

Final Thoughts

Once and only once, I allowed an individual to continue working for a short time after the termination interview. The outcomes were disastrous. Never again!

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