If you fire an employee, should you “walk them out of the building” immediately? A TEC member said he did just that, and it sparked discussion among his fellow CEOs.
The workforce watches with interest how you fire someone and will be left wondering, “Is this how my firing will be handled?”
There was no clear consensus. Some CEOs had given a solid, long-term employee who was no longer performing as much as six weeks’ notice with this warning: “Begin looking for a new job. If I hear any word that others know, that will be your last day. If I don’t, we will be honoring you for your long-time service.”
If a person quits with two weeks’ notice, it’s likely he has already copied or stolen whatever information he wanted, so a walkout won’t prevent anything. Honoring the two weeks allows finishing off work-in-progress and training a successor.
If you’re terminating a person for persistent non-performance, and it will be unexpected, it may be useful to do a “walk out,” especially if the person is likely to create more ill will in the following days. The other employees will wonder what took you so long.
Here’s a useful tip. Have new employees sign a statement saying that when termination occurs for any reason, all work information is the property of the company. If documents or other materials are missing, the company will prosecute the employee for theft. One TEC member whose employee stole information said he called the president of the company the employee was quitting to join and told the president that he was hiring a thief.
On rewards for recruiting employees
This is an important incentive as it becomes harder to find the right people to hire.
Companies that offer rewards have found that if an employee recommends a relative, it’s usually a great recommendation. Employees know that if a relative they recommended performs poorly, it will reflect on them.
How much to reward? One company pays $2 for every hour worked by the new hire for the first year of employment. So the referring employee could earn up to $4,000 for the recommendation. For a salaried employee, $80 per pay period worked for the first year of employment.
Another company paid a flat $500 after three months of the referral’s successful employment. Another pays $250 after each of the first three quarters worked, and then $500 at the end of the first year.
On hiring millennials
TEC members have heard that millennials, born since 1982, won’t be loyal, dedicated workers.
Not so, says TEC resource Gustavo Grodnitzky. They might not be as committed as past generations, but the statistics say the difference is marginal.
More importantly, create the type of culture that appeals to them. For example:
- Move from separate vacation/holiday/sick pay buckets to paid time off and leave without pay days total.
- Flexible work time within the work week. Stress that accountability precedes flexibility.
- Specific personal career development programs.
- Specific emphasis on relationships, including opportunities for socializing.
- Millennials need to work for a larger cause or mission. Make sure you are articulating and living one.
Building a culture around these elements works because other generations can easily meld into or around them, as well. It’s also critical because as baby boomers retire, there aren’t enough Gen Xers to replace them at current staffing levels, much less higher ones.
Grodnitzky also stressed the powerful potential of millennials. What they have experienced as children and young adults is similar to what the Greatest Generation experienced.
The Greatest Generation lived as children through the “unraveling of society,” from the Roaring ’20s to the Great Depression. As young adults, they lived through the crisis of World War II. After the war, they had low expectations but high desires. They spawned seven U.S. presidents who were dynamic in dealing with problems.
The millennials are following the same path and, Grodnitzky believes, will show the same dynamism and leadership.
Interesting, yes? Hire and develop them, if you can keep up!
-Phil Hauck facilitates three TEC CEO groups in northeast Wisconsin.
