Episode Summary: The $100 MBA Show - MBA2272 Why It’s So Hard To Fire Someone & How To Do It The Right Way

Host: Omar Zenhom
Release Date: March 23, 2023
Podcast: The $100 MBA Show
Title: MBA2272 Why It’s So Hard To Fire Someone & How To Do It The Right Way

Introduction

In episode MBA2272 of The $100 MBA Show, host Omar Zenhom delves into the challenging yet essential task of terminating an employee. Drawing from his extensive experience in entrepreneurship and business management, Omar provides a comprehensive guide on understanding the emotional and practical complexities involved in firing someone and offers actionable strategies to handle the process effectively and compassionately.

Why Firing Is So Difficult

Omar begins by addressing the inherent discomfort associated with firing an employee. He likens the process to a personal breakup, emphasizing that it’s a relationship dissolution that carries emotional weight for both parties.

“Any relationship, even if it's an employee employer relationship, is a relationship. It's a breakup.” [02:45]

This emotional difficulty is compounded by the repetitive nature of the task. Each instance of firing triggers the same feelings of confrontation and regret, regardless of past experiences.

“You are reliving it, thinking about it when it's over. So you experience the emotions of this confrontation over and over and over.” [04:10]

Taking Responsibility

A significant reason firing is challenging is the realization that it often stems from the employer's decision-making, particularly the hiring process. Omar stresses that if an employee isn’t performing adequately, it reflects on the employer’s initial hiring judgment.

“If you hire them and they don't work out, you have to fire them. This includes me.” [05:30]

Acknowledging this responsibility is crucial for growth and improvement in future hiring decisions. Omar advocates for taking ownership of the mistake to foster better business practices and team dynamics.

Executing the Firing Process Correctly

Omar outlines a straightforward, three-step approach to firing an employee effectively:

1. State the Decision Clearly

   • Begin the conversation by unambiguously informing the employee of the termination.
   • Example: “Unfortunately our working relationship has to come to an end.” [07:15]

2. Provide a Brief Explanation

   • Offer a concise reason for the termination, focusing on business needs or unmet goals.
   • Example: “We're unable to continue to work with you because you're not hitting your KPIs.” [08:00]

3. Outline the Next Steps

   • Inform the employee about logistical details, such as their last day, final pay, and contact points for further information.
   • Example: “Your last day is this day. HR will be in touch with your next steps.” [09:20]

Omar emphasizes the importance of keeping the conversation short—typically under five minutes—to maintain clarity and prevent unnecessary emotional escalation.

“This is not a long conversation. This usually lasts less than five minutes, if that at all.” [09:50]

Handling Employee Reactions

Employees may respond with surprise or requests for another chance. Omar advises referencing prior performance discussions to reinforce that the decision is the culmination of ongoing evaluations and support efforts.

“Remember we had this conversation. Remember I put you on this plan? Remember when we had these new goals set out?” [10:35]

This approach helps in grounding the termination in documented performance issues, minimizing ambiguity and personalizing the decision as a business necessity rather than a personal failing.

Maintaining Team Morale Post-Termination

Post-termination, Omar highlights the importance of publicly acknowledging the departing employee's contributions to sustain team morale and demonstrate professional leadership.

“Anytime somebody leaves the team, there is some effect on morale. And we want to make sure that we manage that as much as possible.” [11:10]

By expressing gratitude and wishing them well, leaders can foster a positive environment and set a respectful tone for the remaining team members.

Final Considerations

Omar concludes by advising business owners to prepare for the emotional aftermath of firing an employee. Scheduling the termination appropriately allows for personal reflection and recovery before transitioning to subsequent tasks.

“Understand that this is an uncomfortable conversation and it's going to have some effect on your day. So make sure you schedule it properly.” [12:00]

By implementing these strategies, leaders can navigate the difficult process of firing with professionalism and empathy, ultimately strengthening their business and leadership capabilities.

Key Takeaways

• Acknowledge Emotional Challenges: Recognize the personal and emotional difficulties involved in terminating employment.
• Take Responsibility: Understand that hiring mistakes reflect on leadership and responsibility.
• Follow a Clear Process: Utilize a structured, three-step approach to communicate termination effectively.
• Reference Prior Discussions: Reinforce the decision with documented performance evaluations and support.
• Maintain Team Morale: Publicly thank departing employees to sustain a positive and respectful team environment.
• Prepare for Aftermath: Schedule terminations thoughtfully to allow time for emotional recovery and readiness for subsequent responsibilities.

This episode serves as a valuable resource for entrepreneurs and business leaders, providing practical insights into handling one of the most challenging aspects of team management. By adopting Omar Zenhom's recommended approaches, leaders can handle terminations with integrity, compassion, and strategic clarity.