Ultimately, as a CEO, your job is to find the best solution to problems that are not easily solvable.  If the problem was easy, it would’ve never made it to your desk.

One of the biggest lessons I’ve learned as CEO is the responsibility of managing employees cannot be taken lightly, and that responsibility has to be taken in context with the responsibility I have to all of our clients, employees and to the wellbeing of the organization.  Recently, we had to terminate a sales employee, who wasn’t performing up to our expectations.   We had recognized early on that he wasn’t going to work out.    He was, however, well liked within the company and gave the impression that he was putting in a lot of effort.   Unfortunately, the results weren’t reflective of his performance.   We were also aware of some difficulty he was having in his personal life.

I deliberated about this for quite some time.  It wasn’t a question of money for me, but more about the impact (both positive and negative) he was having in the organization.  I knew that he represented Simplegrid every time he visited a client, or spoke on the phone with someone, and he was not representing the company positively.   I knew this was having an affect on our reputation, and reputation in an IT consultancy is paramount to it’s success.  At the same time, I was worried about his personal life and how losing a job would further add to his woes.  Lastly, I was worried about how the rest of the team would react to his termination, as he had formed some strong relationships, and people in the company were aware of his predicament. 

Ultimately we decided to terminate the employee.   We considered investing more into him, training him more, or at least waiting until his personal issues subsided.  But none of those solutions were ideal.  We had already invested heavily in his training and were constantly doing whatever we can to help him succeed.  And we don’t know when (or if) his personal issues would subside.  With that said, we didn’t want to just let him go and fend for himself on top of everything that was going on in his life.  We  offered him a generous severance package, and assistance with finding another job. 

We also met with some of this employee’s closest colleagues in the organization to answer any questions they may have.  Surprisingly, most of them agreed with the termination as they also were aware of his poor performance.  Some consultants even were getting upset that this person was working for the firm, as they felt that they were working more effectively than this person and having him continue working for the firm would’ve affected their morale.   Lastly, many of the consultants were appreciative of the assistance we offered this employee after termination and increase their confidence in the management team that we would do the right thing.

Key Takeaways

• Firing people is never fun, but at times necessary.
• Firing employees is more than just about dollars and cents and being aware of that is notices by those around you.
• As a CEO, you have responsibility to both your employees on an individual basis, but also to the employees as an organization, and must factor in both when making personnel decisions.
• Your staff is very aware of the performance (or lack thereof) of their peers, and how those employees are treated affect the morale of your other employees.

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