As your business grows, expands, and develops, you will certainly need to hire in various forms to help take your business to the next level. However, while on one end you will need to hire individuals, on the other end, you will need to let some individuals go due to a variety of reasons. For this article, I wanted to discuss the five people you are likely to fire as your business matures, plus some tips surrounding the “firing” of certain individuals.
Let’s take a look at the five people you’re most likely to fire…
1. Middle Managers
This is just an effect of the churn and burn aspect of business. With a growing and thriving business, you would be able to offer to the marketplace very competitive wages/compensation for said positions and as a result, always have people trying to get into the door to fulfill open roles. As a result, if current managers are failing to hit minimum performance standards, then you might find yourself in the process of having to hire and fire often within these roles.
2. Lower Level Employees
The same is true for the employees your middle managers may be supervising. You’ll likely see a lot of churn among lower-level employees working for your business. Firing someone is never easy. Here are some tips on how to fire your first employee.
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3. Vendors and Suppliers
You will have to fire in this category due to just normal changes of business direction, along with changes in various commodity costs that might drive up prices at a particular supplier. Also vendors and suppliers could fail in their level of performance as well, from order mistakes to missed deliveries, their inefficiencies internally could be a main reason for their termination.
4. Business Consultants
This list can include a variety of professionals from bankers, to accountants, to attorneys, etc. Similar to that of vendors and suppliers, these professionals could fail in their level of performance and their inefficiencies internally could be a main reason for their termination.
5. Business Partners
Having a business partner can be risky if the person’s character, competencies, and operational “vision” changes to the point where they no longer align with yours. As a result, you might find yourself in the position of having to terminate a business partner through the process of buying them out of their ownership shares.
Costs Of Firing Individuals
There are costs of hiring and costs of firing individuals, as a result, a very strong filtering process should be implemented upfront before individuals are brought into your organization. Just about every potential employee, manager, vendor, consultant, and even business partner are likely to be on their “best behavior” during the initial interviewing process, but a deeper procedure should be developed by you to filter those who are likely to come into the organization to be a pillar for growth, rather than a pillar for wasted time, energy, and resources.
Regulations/Potential Lawsuits For Firing Individuals
Another thing to consider is that it’s much easier to hire someone than to fire someone. Firing individuals can cause bitterness and desperation, as they enter back into a marketplace that might not be so easy to pick up another position. As a result, when you fire them, make sure you aren’t violating any of these laws below so that you can avoid (if all possible) a wrongful termination lawsuit:
Americans with Disabilities Act (ADA): Make sure there’s no hint, proof, or other indication that the person is being fired for having a disability.
Equal Employment Opportunity/Employment Discrimination: Make sure there’s no hint, proof, or other indication that the person is being fired for their race, age, gender, religion, etc.
General Harassment: Make sure that no current employee of yours has been involved with, nor the victim of, any type of harassment while in the workplace.
At-Will Employment: Also make sure your hiring agreements state that all employees are hired at “will.” This means they can be fired for any reason or no reason (other than for wrongful terminations such as discrimination).
The Final Word
You can’t do it alone, so as your business grows, expands, and develops, you will certainly need to hire in various forms to help take your business to the next level. But if done improperly, it could lead to other issues that could cause major damage to your organization. Make sure to keep your business attorney and/or expert human resources professional is involved during both the hiring and firing process.
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