Hiring and Firing — they sound so close, yet are so different. Hiring can be such an exciting time for small businesses as it usually signifies growth. Firing on the other hand, is not fun for anyone. Both are tricky processes and must be done by keeping several things in mind — including to-do’s that could lead to legal action if not followed properly. Below are a list of some common-sense hiring guidelines and general firing guidelines to follow when dealing with employees:
Common-Sense Hiring Guidelines:
- Don’t discriminate. This includes but is not limited to race, color, gender, religion and disability.
- Respect the applicant’s privacy. Do not ask questions about marital status, economic background, personal life, etc.
- Don’t make false promises on things like job security or employee benefits.
- Follow all laws pertaining to minimum wage, hiring minors or hiring immigrants.
- Follow all IRS guidelines pertaining to hiring contractors.
- Follow all IRS guidelines pertaining to hiring requirements.
You’ll want to be particularly careful during the interview. Don’t ask questions based on any of the discriminatory labels as mentioned above. If you cross the line, you are potentially opening the doors for the applicant to file a discrimination claim. Another pre-screening task you’ll want to be cautious of is running background checks. Each state has its own laws on the ifs and butts of running one — some states ban all forms of background checks. Remember that if you do run a background check (and it’s permissible in your state), you get the applicant’s written consent and provide them with a copy of the report.
Firing Guidelines:
- Don’t do any firing when you’re mad. Before you let go of any employee, you’ll want time to think it through and evaluate. Taking some time to cool off may not change your decision, but it will help you evaluate and develop your plan of termination.
- Follow the company policy. Most companies have termination policies in place – make sure you stay consistent.
- Document your evaluation. An explanation of why and how an employee was terminated should be noted in that employees file. If your business was to get audited, failing to do this may result in assumptions of an improper motive.
- Be honest. How often have we all heard, “it’s not you, it’s me.” Or just corporate jargon about “cutting back.” Your employee, no matter how infuriating, has put in time with you and your company and deserves the truth about why he/she is getting terminated. It could also hurt your credibility if you say you’re “cutting back” but are in fact looking for their replacement.
- Prepare and give out a severance package. A severance package is a generous sentiment that could really help an employee’s transition and reduce the likelihood of any litigation. If you do choose to offer a severance package contingent upon a release of claims against the employer, make sure to have a attorney draft it.
- Include a silent observer. Termination interviews are full of emotion and it’s easy to get caught up in it – make sure to have a silent observer there to document the meeting in case you get compromised.
- Write a termination letter. This isn’t a must, but it’s a good idea because it allows you to really think about the reasons behind a termination and convey them appropriately.
- Be respectful. Terminating an employee should be done with as much consideration as possible. The more worked up you get, the more likely you are to say irrational things, which increases the chance for any legal action.
Are there any hiring or firing guidelines that we’ve missed? Do you know of any resources that give additional information on specific guidelines per state?
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