For a small business owner, terminating an employee is neither an easy decision nor a pleasant experience. So the entire process has to be planned well and should be handled very professionally and with the utmost sensitivity. It will ensure that the departing employee is treated with dignity and respect, and he never feels discriminated or dejected in any way. Nor will he ever nurture any kind of grudge or negative feelings against the organization or his employer.
As a first step, it would be advisable for the business owner to convincingly explain to the employee, who is going to be terminated, the exact reason why he is being laid off so that he doesn’t feel worthless, rejected, guilty or embarrassed in any way. This step will also avert negative fallouts or adverse impact on the motivation or morale of the remaining staff and help retain their goodwill, loyalty and trust.
If the employee is being sacked because of poor performance or due to some misconduct, the SME owner must first communicate his unhappiness to the concerned individual and warn him that he will be sacked if he cannot start delivering the results expected of him or if he doesn’t amend his conduct within a specified timeframe. If he heeds the advice and manages to turn things around and improves his performance in every respect, the decision to terminate him can be reconsidered and cancelled.
If the SME owner is in a position to offer any career transition support to the terminated employee so that the latter can successfully switchover into the next stage of his career, the owner should definitely extend a helping hand to orient the concerned employee towards a better future. This will tremendously ease the difficulty of the unpleasant situation and also avert the risk of the organization being sued by the sacked employee. If the departing employee is entitled to severance pay or any other benefits, ensure that all those benefits are given to him as soon as possible.