Terminations

Reasons for firing employee

Masters of the Universe

Another update from the Jungle…

Masters1Jim and Tony run a venture capital fund that specializes in distressed assets. They buy companies, replace the management team, cut most of the employees to generate savings and make the company look profitable (on paper). Then they sell the company.

A business magazine features them in an article and uses the term masters of the universe. After the feature article, Jim and Tony decide to branch out from distressed assets and buy a company that has been successful without being spectacular.

Jim and Tony begin their ownership by holding a company-wide meeting with employees at which they talk about the company’s wonderful financial future. This sales pitch is interrupted by Linda who asks them to reconcile these comments with their established practice of boosting profits by firing most workers. Jim evades her question. So Larry asks pointblank how many jobs will be cut. Jim looks at Tony. Tony shrugs. The meeting ends abruptly.

Masters3After studying the company’s bottom line, Jim and Tony decide that the first employees to go are Linda and Larry. They tell Sandra, the HR rep, to prepare the paperwork. She cautions against firing two of the most respected workers. Jim looks at the org chart again and concludes they are peons.

On Friday, Linda and Larry are ushered out the door. Their first port of call is an employment law attorney where they discuss wrongful termination, retaliation, and age discrimination.  The attorney has a vision of becoming famous by taking down the masters of the universe. He agrees to represent Linda and Larry.

Master2Within weeks, a third of the workforce resigns following Linda and Larry out the door. Jim and Tony are initially relieved; they only had to fire two workers. But the remaining workforce is demoralized. Within six months, the company has lost several key clients and the bottom line is tanking. Jim and Tony call a meeting with Sandra to discuss staffing levels and the status of Linda’s and Larry’s lawsuit.

What should Sandra tell them?

  1. She can say that she warned them that firing Linda and Larry would have dire consequences.
  2. She can tell them that as masters of the universe, she expects them to solve their own problems.
  3. She can hand in her resignation, having already received several job offers.

The above scenario is exaggerated but may seem familiar to anyone who has experienced a change in ownership at an employer. Creating a plan with HR for handling inevitable layoffs can smooth the transition. It is also helpful to see employees as more than just a cost to the bottom line.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

 

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Promoted to Failure

Another update from the Jungle….

actionplanJulia, the HR manager, is watching her company’s diversity and inclusion program go hideously wrong. Julia pushed every level of management all the way to the C-suite, urging them to broaden the pool of employees eligible for promotion to management. What did all her effort get her? Margaret.

Margaret worked in operations for many years and understands the technical side of the job but her interpersonal skills are dismal. She’s whiny and needy and self-absorbed. Some of her shortcomings might have been fixed if the C-suite had accepted Julia’s recommendation to create a management training program.

Instead, Margaret was promoted to manager without training or a mentor to help her. Now she micromanages her subordinates and refuses to delegate any decision-making authority to them. But she’s afraid of being held responsible if something goes wrong so she fails to make any decisions.

When other department managers complain that their work is disrupted, Margaret blames her subordinates of incompetence. Her subordinates show up and don’t do their jobs since they know bossany actions they take are likely to be undermined by Margaret. Most of them are applying for transfers away from her.

The stress on Margaret is so intense that she suffers from migraines and works from home several days a week. When she does come into the office, she is so unpleasant that everyone avoids her.

The steady rumble of discontent is growing so loud that the C-suite is having trouble ignoring it. Julia is desperately searching for a solution to the whole mess but she’s run out of time. In today’s mail she receives an EEOC notice letter that a complaint of racial discrimination has been made against Margaret by Margaret’s secretary.

What should Julia do next?

  1. She can recommend that Margaret be appointed special liaison to the company’s suppliers with an immediate posting to, say, Shanghai or Taipei.
  2. She can investigate the charges and then artfully respond to the EEOC in a way that is slightly more flattering than the actual situation warrants.
  3. She can notify the C-Suite of the EEOC investigation and use this as an opportunity to convince the senior managers to approve a training program for new managers.

In the actual situation, the EEOC concluded there was no racial discrimination because the new manager treated all her subordinates like crap. The employer hailed this decision as a victory. The new manager was eventually reassigned during a departmental reorganization but the employer still doesn’t have a training program for new managers.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Get Rid of Him!

Another update from the Jungle….
image024Doug is getting close to retirement age after a long, not very distinguished, career. He’s still the consummate professional but it’s obvious that all is not well with him. He is out sick at least one day a week and he doesn’t do much work on the days he is in the office.

Doug’s problems are becoming a headache for Suzy, the HR manager. Suzy likes Doug; he’s always polite and respectful which is not true of his pushy boss. The pushy boss has ordered her to find a reason to fire Doug. Suzy privately thinks the pushy boss wants to make his budget look better by dumping Doug for a less experienced and lower salaried employee.

Suzy begins discrete inquiries of Doug’s behavior and job performance. His friends tell Suzy that Doug suffers from anxiety
attacks and depression. Doug’s anxiety attacks worsened when he was moved into an office on the 15th floor with a wall of windows. Doug has a fear of heights.

Doug’s also having trouble remembering things. Yesterday, Suzy overheard a junior team member
image025talking to Doug about a client problem. When Doug said the problem sounded familiar, his junior replied, “It ought to; it’s your client”.

Today Suzy is meeting with Doug’s boss. She suggests that Doug should be moved to an interior office but the boss says no; senior people like Doug must have a window office. Next Suzy asks for examples of Doug’s work that show he can’t do his basic job description. The boss has none. In fact, Suzy already knows the boss gave Doug a tepid, but positive, performance review.

What should Suzy do next?

  1. She can tell the pushy boss that he’s a dingbat for trying to fire an older worker who is obviously still competent and who has not received a negative performance review.
  2. She can read up on the definition of “disability” in the Americans with Disabilities Act in case Doug decides to ask for an accommodation.
  3. She can verify that the company has employment practices liability insurance because her gut instinct is that Doug’s boss is about to demonstrate the need for such coverage.

In the actual case, the older worker eventually took early retirement based on health reasons and faded away without raising any of the legal issues that were available to him. The pushy boss was promoted which allowed him to be pushy to a greater number of people simultaneously.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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The Slob Next Door

Another update from the Jungle….

image017

Judy was excited about her new job. She targeted the company for employment after reading the corporate social responsibility blurb on their company website. During the interviewing process, the HR people seemed impressed by her accomplishments and she was impressed by their description of the charitable causes supported by the company.

Judy moved into a cubicle with a window view (of the parking lot) and prepared to work for a company with a conscience. Judy set to work with energy and enthusiasm, sure that she had found the perfect employer. But, alas for Judy, the dream job quickly ended. A slob moved into the cubicle next to hers.

The slob’s cubicle overflowed with work papers, empty candy bar wrappers and gum wrappers. The slob guzzled caffeinated drinks all day and left the empty cans lying around his cubicle, creating a sticky mess that oozed into the corridor between rows of cubicles.image021

All those caffeinated drinks also made the slob twitchy. He thumped and bumped against the cubicle walls so that Judy sat in a mini earthquake zone. The slob listened to music on his iPhone but even with headphones, everyone in a ten-foot radius could clearly hear the music. The slob often cracked his gum in time to the music.

Judy made several attempts to politely ask the slob to turn down the volume on the iPhone, to not crack his gum, and to not hit the wall between their cubicles. Each time the slob apologized but promptly ignored her requests. Finally, Judy asked her boss to move her to a cubicle far away from the slob. Her boss told her to ask HR.

The HR rep said no other cubicles were available. She implied that Judy was not a team player after Judy pointed out that the slob was violating several HR policies on cubicle etiquette. Then the HR rep suggested that Judy should try to “work something out” with the slob. Judy left the HR meeting convinced that no one in authority cared about the slob next door.

What are Judy’s options?

  1. She can train the slob the same way she trained her dog, spraying him with water each time he engages in “bad” behavior.
  2. She can learn meditation techniques to help her deal calmly with the slob.
  3. She can ask whether she wants to work for a company that brags about corporate responsibility while allowing a slob to ignore company policy and annoy co-workers.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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I’m Not His Employee

Another update from the Jungle….
image011Addison works for Rob, who has a consulting business. (We met Rob in last week’s post.) The work is sporadic and project-based but she likes it that way because she’s a free spirit. Addison worked for large corporations for many years and is happy to be on her own now.

She does project-based work for several businesses, including Rob’s, and also has a few clients of her own. She dislikes sales and prospecting for clients because she prefers to focus on the work. She likes working for Rob because he pays quickly and the projects allow her plenty of scope for imagination.

Today when she stopped by Rob’s office to discuss the next project, she found him in a strange mood and slightly hung over from overindulging in Gentleman Jack. Rob began talking about financial problems. At first Addison thought he was telling her that he was insolvent. Then she realized he was talking about some new policy of the U.S. Department of Labor (DOL).
image015The DOL recently said that it would no longer use the “control” test to determine if a worker is an independent contractor (1099 worker) or an employee (W-2 worker). Instead, the DOL plans to use an “economic reality” test. This new test has a number of factors but can be summed up by saying that if a worker is economically dependent on the employer, then the worker is a W-2 and not a 1099.

Addison accepts Rob’s offer of a shot of Gentleman Jack, although she prefers Buffalo Trace, and they sit in a gloomy silence as they contemplate what the new test means for each of them. Addison dreads the idea that she could again be classified as a W-2 because she likes being free to work at her pace and only on things she enjoys doing.

What should Addison do next?

  1. She can explain to Rob that she has other clients in addition to the work she does for him and so she thinks that she truly is an independent contractor.
  2. She can incorporate her business now that she has the money to do so rather than continuing to operate as a d/b/a. Incorporating is additional proof that she is running her own business.
  3. She can wait to make any changes until she has more information.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

Download my FREE eBook today! Click here! 

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How Soon Can I Fire Her?

Another update from the HR jungle….

Gretchen and Sam started their business on a shoestring budget and built the company up to a point where they now have a dozen employees. The employees work well together and cover for each other during lunches, vacations, or sickness; whatever it takes to keep the clients happy. It’s a real team effort and it’s paid off financially for everyone.

That is…until Liza was hired as the receptionist. Liza was told at her date of hire that she would be trained on other office procedures so that she could help cover for other employees when they are absent from office. But it turns out that everyone is covering for Liza.

Liza has a malady a week, mysterious illnesses that mean she misses a lot of work. The other employees are beginning to openly complain about the extra work caused by Liza’s absences and inattention when she is at work.

Gretchen just completed a review of the past quarter’s attendance records and is shocked by what she sees. She wants to fire Liza immediately based on poor attendance. Then she realizes there is no record in Liza’s employee file showing that Liza has been warned of the consequences of poor attendance.

What should Gretchen do next?

1. She could fire Liza immediately and hope that Liza won’t hire an attorney to argue about allegedly wrongful termination.
2. She could offer Liza a severance package in exchange for leaving immediately and waiving any later claims related to the termination.
3. She could set up a meeting with Liza to review attendance policies, give a “final” warning and wait to see if Liza improves (or not).

Does this situation sound familiar? If your company has faced this issue, you know that each option has pros and cons. Corporate Compliance Risk Advisor can help your company consider the options to resolve the immediate problem and limit similar problems in the future.

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