Ethical and Professional Termination: How to Terminate Correctly?
In any organization, there eventually arises the need to part ways with employees. Termination is always a challenging and painful process for both the employer and the employee. However, if approached professionally and respectfully, it is possible to minimize negative consequences and maintain the company’s good reputation.
For instance, in 2020, at the height of the COVID-19 pandemic, Airbnb faced the necessity of reducing about 25% of its workforce. The company approached this process transparently and respectfully. The CEO personally informed employees of the upcoming layoffs through an open letter, explaining the reasons for the terminations, the criteria for the decisions, and the subsequent steps to support the affected employees. Additionally, the company launched an internal job portal for laid-off employees with vacancies from Airbnb partners, provided career counseling, and paid severance packages and compensation.
IBM also ensures generous severance packages and benefits to support its employees. The company provides access to retraining and upskilling programs, offers laid-off employees services of professional career counselors who help with resume writing, interview preparation, and finding new opportunities.
Microsoft follows a similar practice. They offer programs for learning new skills to help employees adapt to new labor market requirements. Laid-off employees receive recommendation letters and assistance with professional contacts. Through the outplacement service, Microsoft provides access to external agencies that help employees find new jobs.
The experience of global companies shows that to ensure employee termination is ethical and professional, certain fundamental principles should be followed.
Honesty and Transparency
A termination discussion should be conducted in person, in a private setting. State clear and objective reasons for the termination, backed by facts. Avoid long introductions and ambiguities. Show respect and empathy towards the employee, listen to their perspective, and allow them to express themselves. This helps mitigate negative emotions and reduce stress levels. Highlight the prospects and new opportunities that may arise for them post-termination. Ensure that your actions comply with the law.
Organizing Termination
At this stage, it is important to correctly complete all necessary documents in accordance with legal norms, considering social protections. Calculate and pay all amounts due to the employee, including severance pay, compensation for unused vacation, and other payments and benefits provided by the company.
Support and Farewell
A dignified farewell to an employee also requires attention:
- Organize a small farewell meeting to express gratitude for their work. This helps maintain a positive impression of the company.
- Provide the dismissed employee with a recommendation letter to aid in their job search.
- Offer the employee assistance during the transition period, such as retraining or upskilling courses. Discuss other possible support options that the company can provide.
- Provide outplacement services, which involve helping laid-off employees with job search, resume writing, and interview preparation.
Smart Solutions successfully practices outplacement services for its clients. We advise affected employees and assist them in finding new jobs. This helps companies ethically and correctly terminate employment relationships, maintain their reputation and positive employer image, and potentially resume cooperation with the employee in the future if necessary.
Our company has many positive cases, particularly in Ukraine, where as a result of professional terminations and subsequent job placement assistance, employees retained a positive attitude towards the employer despite the unpleasant news of layoffs. Thanks to the assistance and recommendations from our professionals, such employees usually found new jobs more quickly, allowing the company to avoid negativity from them.
Ethical and professional termination is an important aspect of personnel management that requires thorough preparation, professionalism, and attention to detail. By following the above recommendations, you can minimize negative consequences, maintain the company’s reputation, and support the dismissed employee during a difficult period.
