Glossary of Human Resources Management and Employee Benefit Terms
Employee Termination is a formal and deliberate process of ending an individual's employment within an organization. This may occur due to various reasons, including poor performance, code-of-conduct violation, or misconduct. Employee termination ends the working relationship between the employee and the employer.
Employee termination refers to the end working days of an employee in the company. Employee termination may be voluntary or involuntary, depending upon the situation.
Employee termination is essential for HR and employers to handle termination delicately and adhere to legal and ethical standards, which may involve open communication, unbiased treatment, and providing support to the departing employees can help mitigate negative impacts and maintain active employer-employee relationships.
The general outline of steps involves in the employee termination process involves:
1. Review policies and obligations of the company: Before taking any step towards termination, review relevant company policies, employment contracts, and applicable employment laws to ensure compliance and unbiased treatment.
2. Determine the reason for termination: HR and employers should gather the evidence to know the cause, which may be due to poor performance, misconduct, or other legitimate reasons.
3. Connect or meet the employee: In the meeting, the employer should justify the reasons to terminate the employee by providing their perspective towards the behavior or the misconduct. Any necessary paperwork, including a letter of separation agreement, should be prepared beforehand.
4. Handle logistics and paperwork: By following the terminating meeting, the employer or HR should handle the logistics matters, which may include collecting company property, deactivating the account, and ensuring returning of assets provided by the company. Before leaving, final pay, other benefits and agreements, and company policy should be done.
5. Communicate with the employees: The company should communicate with the other members of the organization and inform them about the departure of the employees, ensuring confidentiality and providing any necessary information.
6. Conduct exit interview or feedback: An exit interview/feedback should be conducted before the departure of the employee to gather insights of the experiences or suggestions/concerns related to the organization.
Termination of an employee takes place when the employee is performing poorly, misconduct, or any unfair practices take place in the organization. Termination can be by free will or forced, which depends on the situation.
Announcing an employee termination should be handled with sensitivity, professionalism, and respect. The steps to announce an employee termination are as follows:
1. Plan a communication: Analyze the situation and who needs to inform the termination, which includes the employee's immediate supervisor, HR department, or other stakeholders.
2. Maintain confidentiality: It's important to maintain confidentiality and respect the departing employee's privacy and confidentiality during the announcement. Share information only with the people who need to know and avoid any gossip.
3. Prepare a clear and concise statement: Create proper communication by easing the employee and clarify properly with the employee. All the essential information should be provided, such as employee departure and general explanation for the departure.
4. Choose the appropriate communication method: The method of communication depends on various factors such as the size of the organization, nature of termination, and level of impact fostering on a team which can be conveyed in person or by email.
5. It offers a sense of empathy and respect: The information should be conveyed respectfully to the employee and with ease. Be prepared for cross-questioning or addressing various concerns by the employee.
6. Offer support to remaining employees: Provide opportunities to express feelings and add their concerns and be empathetic towards them and offer proper support during their transition.
7. Provide resources and guidance: According to the situation, help the employee by providing resources and guidance, which may involve roles and responsibilities, training opportunities or services.
HR is primarily responsible for terminating the employee by informing them, conducting meetings with them, and conveying the issue, which may be performance-related, disciplined, or not following the code-of-conduct. This situation should be handled critically. They also provide guidance related to legal compliance and handle logistical aspects of the termination process.
Format to write employee termination letter:
1. Date: Add the current date on the company letterhead, the name of the company, and the address to print.
2. Add employee's information: The information related to the employee's name, position, department, or team they were working with and the employee ID or any other relevant information.
3. Salutation: Add the employee's formal salutation with their designation.
4. Make a formal statement: Start by expressing a clear statement of termination and notify them of the primary concern.
5. Include the reasons for termination: List the reasons that led to the employee's termination with cause, and support the reasons with the evidence.
6. Termination Details: Clearly state the effective date of termination, which is the last day of the employee's employment, including information regarding the final payment, benefits, or severance package.
7. Appreciation and well wishes: Convey appreciation for the employee's contribution and offer well wishes.
8. Add contact information: Provide contact details of the HR representative or other relevant person whom the employee can contact for their queries.
9. Closing: End the letter with professional closing followed by the name and position.
10. Signature: Signing the letter and providing the physical copy and typing the name/position below the closing is sufficient.
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Employee termination due to various reasons:
1. Poor performance: Employees who consistently fail to meet the team expectations or do not improve despite several warnings or feedback.
2. Attendance and punctuality: Often less attendance, late, or lack of adherence to the organization's attendance policies.
3. Violation of the code of conduct: Employees violating the code of conduct or involved in unethical practices may also face termination.
4. Reduction in workforce or restructuring: Certain economic factors, organizational changes, or strategic decisions can lead to terminations due to redundancy or the need to streamline operations.
5. Resignation or voluntary termination: Employees may voluntarily choose by submitting their resignation for personal reasons or new job opportunities.
6. Misconduct or policy violation: Major misconduct, which includes fraud, harassment, or breach of company policies, can lead to termination.
Some general considerations related to employee termination are as follows:
1. Employee contracts: Employees must adhere to the terms and conditions outlined in employment contracts or agreements. Termination should be done with proper notice and breach of contract claims.
2. Notice period: Many jurisdictions require employers to provide a certain amount of time, called a notice period, to serve the organization before termination. The length may vary based on certain factors, service size, position, or employment laws.
3. Discrimination and retaliation: Employers cannot terminate employees based on protected characteristics, race, gender, religion, disability, or age. Termination should be for non-discriminatory reasons.
4. Final pay and benefits: Employers must provide terminated employees with their last paycheck, accrued vacations, holiday pay, or other related uses.
5. Consultation: Some jurisdictions mandate that employees consult employee representatives, labor unions, or government agencies.