Firing employees while saving face

5/13/2011

As companies grow, sometimes they begin to outsource certain positions, which makes having in-house staff redundant. While it is an unfortunate predicament, the business owner is left with no choice but to let go of the redundant staff.

American Express OPEN Forum suggests that firing an employee doesn't always have to be a huge heartache. The key is being straightforward with workers and avoiding dancing around the situation.

"Make sure you have retained detailed notes from performance reviews. Planning and documentation is the best way to avoid costly litigation," explains the site. "Thank them for their time with the company. This will be your last impression upon the employee. Make sure they understand that you are human."

Fortunately, as small business lending improves and companies have greater access to commercial loans, more organizations are looking to hire employees rather than fire them. As recent ADP reports have suggested, the number of people collecting unemployment has decreased significantly over the past few months.