Two to Hire – Two to Fire

Business owners frequently ask—"What can I do to avoid the possibility of a wrongful termination charge by an
employee?" The easy answer—"Don’t hire the wrong person for the job." The reality is that one day every business owner
will face the unpleasant task of having to terminate an employee for one reason or another.

How can a business retain good employees and avoid terminations?

• Diligence when hiring is the first step. Always check background, references, and driving records if driving will be a
  part of the job. Have two management level people involved in all hiring decisions. A second set of eyes reviewing
  an applicant helps ensure the hiring decision is based on the candidate’s qualifications and work experience, rather than
  one person’s likes or dislikes of an applicant’s personality. It is a good procedure to follow.

•  Training and orientation are essential for new employees. Provide ongoing opportunities to learn more about the
  business and improve skills to help keep employees motivated. Mentor those who show initiative and promise to
  develop future leaders.

•  Give feedback to employees on their job performance, but don’t just limit it to scheduled reviews. Don’t assume
  everything is fine just because an employee doesn’t complain. Employees want to know they are doing a good job. A
  simple compliment on how an employee handled a situation will reinforce desired behavior and tell employees their
  efforts are appreciated. Give occasional rewards. When corrective action is needed, use a positive approach with
  specific recommendations. This can help avoid embarrassment or resentment and possible future allegations of unfair
  treatment.

What to do when termination seems inevitable

Always base decisions to reprimand or terminate employees on documented facts and observations, not on emotional
responses to a situation or on personal judgments. Sometimes "just the facts" may not provide enough information and
employees may not be forthcoming about problems. For example, a service technician began to arrive late to work and often
seemed distracted. His co-workers were tolerant, but the service manager was strict about punctuality and became irritated
by the employee’s tardiness. Actually, the employee liked his job and was meeting performance expectations. The problem
was that an elderly parent had recently moved into his home and required special care in the morning. In this case, a simple
schedule change could solve the problem and help relieve the employee’s stress. It would also demonstrate the manager’s
willingness to make accommodations for a good employee.

Sometimes it is necessary to terminate an employee because of poor performance even when good hiring procedures were
followed and the employee started out on the right foot. Make certain all terminations are fact-specific. Is the decision
consistent with how "similarly situated" employees have been treated in the past?
Consider having two management personnel involved with the termination. Should the terminated employee ever
dispute what took place, you have a witness to verify what was said. You may want to implement the "two to hire – two to
fire" strategy. It may be an effective risk management technique for your business.

If you have additional questions please feel free to reach out to:

Mike Russell
Senior Account Executive
Federated Insurance
mdrussell@fedins.com
(480) 216-5445