One of the hardest tasks a manager ever has to do is terminate an employee. This concept of "firing" dates back to medieval times. When someone in a community was deemed to be unacceptable, that person’s hut was burned down, forcing them out.

We’re struggling with an economy that is forcing businesses to downsize. The workplace has become a competitive environment, where those who demonstrate the greatest value win the grand prize of keeping their jobs.

Even in a strong economy, managers have to let employees go, and the biggest reason is poor performance. Whether you tell them the decision is downsizing, a layoff, or outright firing, the result is the same: someone is out of work. And while the terminated employee clearly suffers the greatest loss, it is the manager who has to deal with the tough decision and its consequences.

Now, if you look at the behavioral economics of management, firing is, in truth, de-hiring. And this action is the result of the employee’s actions (or lack thereof), I do not fire anyone; I let them de-hire themselves. If an employee is late every day or unwilling to actively prospect for leads, I believe that person has made a choice not to comply with the clear-cut requirements of the job. With this action, he has chosen to de-hire himself. I merely affirm that decision.

When the termination time comes, I explain, "You’re a wonderful person, but I’m not judging you on your character but rather the fact that you have clearly decided not to comply with the needs of this position. So, do you want to change that behavior or de-hire yourself? The choice is yours."

With this simple statement, I remove any guilt on my part and reaffirm the employee’s responsibility. Behavioral Economics 101: It’s business, not personal.

Posted In: New Home Sales Management Training

Tags: behavioral economics, de-hiring, management, myers barnes, new home sales management, termination