Breaking up is hard to do: An SBO guide to terminating an employee.

Every small business owner, SBO, will face many challenges, but few are as tough as having to let an employee go.  Here are some tips on getting through it with confidence and compassion.

Preparation is key before any termination.  It’s important to clearly document the performance issues or incidents that led to this decision.  Have your termination policies available, along with all exit paperwork, closing paycheck, and other documents that may be required by your state, like benefits information.

Unless there is an extreme situation that prevents a face-to-face meeting, do it in person.  Choose a private location and be sure to have a witness present.  It’s important to be direct but compassionate.  This is best accomplished by keeping the focus on documented facts rather than emotions. 

Remember that you do not need to “defend” your decision, just stick to the facts and avoid arguing or debating.  Also be sure to avoid discussing other employees if they go down the path of “what about so-and-so?”  Be resolute in your position and make clear the decision is final.  You may also need to discuss the return of any company property, and if confidentiality policies apply, restate the policies.

After the meeting, document the details and any issues that arose.  Also make sure you update their access to email, facilities and systems. 

Then you need to notify your full team of the decision that was made, without delving into details or disparagement.  Be clear in explaining how that person’s role and duties will be handled going forward – looking for a replacement, split between Amy & Fred, I’ll be handling it myself, etc.

Terminations are never easy, but handling them professionally is part of being an SBO.  With proper preparation and clear communication, you can navigate this process with dignity.  The heavy load of challenges like this can also be made lighter with the help of an SBO Coach.

Explore some of the different classes, courses and services offered at SBOCoach.com to help your small business through the day-to-day SBO challenges you face.