Terminating an Employee: Preparing for a Difficult Conversation

For nonprofit managers, the decision to terminate an employee is often heart wrenching. There are few actions more difficult than preparing to tell someone that he or she is being let go.

Before you have that difficult talk, it’s important to take the following steps to prepare for the conversation, the transition, and the aftermath.

Partner with Human Resources

If your organization has access to human resources expertise – in the form of a dedicated human resources leader, an administrative professional with human resources experience, or even a board member with a human resources background – partner with them. With external human resources help, consider how best to work with them and be clear about who will be responsible for which parts of the process. The collaboration should focus on the logistics of the process, risks to the organization, caring and support of the individual affected, and follow-up regarding the overall organization change.

Seek legal counsel

Even for the most straightforward termination, it is important to seek the expertise of legal counsel, particularly those who specialize in employment issues.

This will ensure both the organization’s and individual’s issues are handled in the best way possible. An employment attorney can help mitigate risks and assess employee considerations, including relevant regulations. When talking with an attorney, walk him or her through the situation with a timeline, actions, and rationale.

Use the employee file and the documentation you have created (see the next section) to show what happened and why.

Ensure all documentation is clear and comprehensive

Typically, documentation consists of a record of conversations and actions — not judgments — about behavior or performance problems.

But know that in the case of restructuring or programmatic changes, it may also take the form of a clear project plan that covers the changes, rationale and process for implementation.

Prepare the severance agreement and package

You will need a written letter that clearly states that employment has been terminated, why it has been terminated, and relevant benefits information.

Either as part of that letter or separately provide the terms of a severance package, if you choose to offer one. The package usually consists of career and transition counseling (often referred to as “outplacement”) you plan to provide and severance pay, the additional payment you offer to help bridge the employment gap. The written severance agreement typically stipulates that acceptance, via signature, indicates the waiving of the right to pursue legal action against the organization. Human resources or legal officials should write and review it to ensure it meets any legal requirements, including those regarding time allowed to sign.

Plan the logistics

Ensure that you are clear on exactly what will happen on the day you deliver the termination conversation. Know and be comfortable with all parts of the process.

Ensure there is a neutral private place to have the conversation.

Will the employee be expected to leave immediately following the conversation or will there be time to gather belongings? Will the person finish out the rest of the day or week? When will systems need to be shut off in their work area?

The circumstances of the situation may dictate some of these decisions, as will any relevant internal policies. Your organization culture and how things have been handled in the past may guide these decisions, too. Know the risks and rewards associated with the decisions, and plan the logistics accordingly.

Get all relevant parties on board

Consider exactly who needs to know about, and support, the upcoming actions. This includes leaders or managers who need to help implement the actions, deliver the termination conversation, or communicate with staff or other stakeholders.

Ensuring the appropriate people are in the know and on board should be balanced with confidentiality – not to obstruct transparency, but to protect the dignity and privacy of those affected, depending on termination reasons.

Script and rehearse

Once you have decided on the logistics, prepare the conversation script.

Keep the message simple, direct, and compassionate.

Ensure you know exactly what to say and work with legal counsel or a human resources adviser to prepare for any responses or questions.

It’s highly recommended that you have a human resources person in the room when the message is delivered, but if you don’t, you may have to also communicate benefits information, so be sure you are comfortable with the necessary language addressing benefits continuation and payouts.

Prepare emotionally

The employee’s reactions may range from anger to sadness to cynicism to relief – or be a combination of those and others.

Be prepared for the emotions you encounter and feel during and after the conversation. You can’t give in to defensiveness, discomfort, or apologies. Think about what you need to do to fortify and center yourself for emotional outbursts or simply the very real tenseness of the situation for all involved.

Know that managers and human resources leaders with decades of experience who have had multiple termination conversations still find it an incredibly intense experience that doesn’t get easier over time.

Think about what you need to do to be ready for the emotion – yours and theirs.