January 19, 2007
When to Say “You’re Fired”
One of the most frequent topics for questions at www.AskDaveLorenzo.com is Firing People. Business owners often want validation for their decisions when they have decided to let someone go. (Incidentally, I hate that term – let go. It is not as though the person wants to leave in the first place and you are going to finally “let them”).
Most of the questions center around firing someone because they made a mistake. First mistakes, repeated mistakes and good intentions are all referenced as business owners, leaders and managers look to make themselves feel better after a tough conversation.
Keep in mind that you need to check all local and federal labor laws before you make a decision on discontinuing employment. It is best to consult an attorney for advice on this topic. I am not an attorney and this blog should never be used in lieu of the advice of a licensed professional.
Here are my general thoughts on mistakes and the consequences for the employee who makes them.
Good Intentions
In my business I generally forgive mistakes that are made when people are doing what they think is best in the given situation. If the employee has good intentions, and it is a first mistake, I will generally discuss the issue with him/her and make certain that he/she understands:
- What happened
- Why it happened
- Why it was a mistake
- How to keep it from happening again
As long as the person’s actions were legal, moral, ethical and they had the best interest of the business in mind when they made the mistake, I give them a second chance.
Examples:
- A hotel clerk leaves the hotel, without telling his supervisor, to drive a guest to the airport because the guest is late and he can’t find a cab.
- An administrative assistant in your CPA firm allows a group of teachers from the local school to print up 10,000 lesson books for this semester on the only printer in the office during tax season.
- The shuttle driver at the airport skips several stops because several people on the bus complain about being late because of the traffic.
Critical Errors
If someone makes an error that results in permanent or long-term damage to the business, a customer or a fellow employee they must go. Some businesses call these errors “deadly sins”. They include:
- Fighting, striking or injuring another employee or customer
- Theft
- Destroying company property
- Damaging an important business relationship with a customer, supplier or other business partner
- Harming the reputation of the business
These actions usually result in immediate job termination.
Incompetence
This is the tricky area for most business leaders. What is incompetence? Just how much incompetence should you tolerate?
In my mind, incompetence is making the same mistake over and over again after being told that it is a mistake. I generally have two conversations with someone about an issue before firing them. I always document each conversation in writing and I am consistent in my policies with all employees.
This is a basic “three strikes and you’re out policy”. This applies to all the “good intention mistakes” and just plain stupidity. Let’s face it, everyone has a bad day where they do something stupid. As long as it is not one of the “deadly sins” you should have a conversation about it (see above) document it and move on. The practice happens twice before I ask the employee to permanently leave. So yes, people can make the same exact mistake twice and not be fired (as long as it is not a “deadly sin”). They key is to be consistent in the administration of this policy.
In my opinion, if people make the same mistake over and over again and they cannot learn from their mistakes, they deserve to be fired.
This brief article does not cover all the nuances involved in employee discipline and again, it is no substitute for the advice of an attorney, but it should give you some insight into my thoughts on when to say “You’re Fired”.
Filed under: Management
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