Join Eddie Davila for an in-depth discussion in this video Ending employee relationships, part of Business Foundations.
- Much like romantic relationships, ending employee relationships can be difficult. And while some human relationships last for a lifetime, the same is not true in business. Eventually, employees leave the company. Sometimes they leave you, other times you must end the relationship. And like with the romantic relationships, the end may be smooth and easy, but other times, the end comes with friction. How can companies minimize the friction? Well, it all starts on day one, the day you hire an employee.
What is said and what is signed, that is an opportunity for a company to make a smooth ending possible. Companies need to be sure not to set false expectations. And they must be clear about what would constitute termination. If the company is too harsh on day one, a bad relationship may have already started. If the company is not specific enough, it could shield bad employees from termination. There are a number of reasons companies terminate employees. Illegal behavior, inappropriate behavior, poor performance, lying about skills or past jobs.
They're all common reasons for firing an employee. And unfortunately, even good employees may be laid-off when a company is struggling financially. No matter what the reason, a company must be truthful. They must tell workers why they let them go and all managerial statements related to terminations and lay-offs must be documented. Also, companies must be fair. All employees must be treated the same way. Inconsistencies in employee evaluations may be construed as discrimination.
When appropriate, consider providing departing employees a severance package. Why? It can build good-will. It can soften the blow when lay-offs of good workers are required, and in a contentious parting of the ways, it can bring about a swift resolution. In all these cases though, it is important to document the purpose of the severance. While terminating an employee for any reason can be difficult. Sometimes employees leave the company by choice. They may get a new job at another company, they may decide to leave to get a degree, and of course, some folks decide to retire.
In all of those cases, it's vital to try and set-up a final meeting, an exit interview. This allows the company to thank the employee for their service, find ways to stay connected, and ask them for their positive and negative experiences with the company in an effort to improve the employee experience in the future. In the case of retirees, staging a retirement event can be helpful to everyone saying their good-byes and allow management to recognize the employee's complete contributions to the organization.
The person retiring, is celebrated. And other workers may be motivated to build a deeper relationship with the company that takes time to honor employees that have given a good part of their lives to this company. The best companies know the rules of terminating employment. They respect labor laws when bad employees are involved, and they know the importance of honoring their retirees. And they may even have specialists that are responsible for ending employment relationships in the company.
Saying good-bye is never easy, but in the world of business, it's something you'll need to face.
He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Understanding business goals, stakeholders, and resources
- Developing a product or service
- Selling a product or service
- Raising capital
- Managing employees
- Managing customer data
- Understanding finances
- Managing resources
- Understanding economics