Orange County Teachers Federal Credit Union

Orange County Teachers Federal Credit Union (OCTFCU) is a not-for-profit organization rooted in the credit union philosophy of “People Helping People,” and built on traditional values of commitment to service, respect for the individual, and fiscal responsibility.

The Santa Ana, CA-based credit union ranked third on the list of 25 medium-sized companies in America honored by the Society for Human Resource Management (SHRM) as using smart people management strategies to develop a strong trust between employees and management. OCTFCU was among other organizations, ranging in size from 50 to 999 employees, who were selected and ranked by the Great Place to Work Institute® based on the results of a randomly distributed employee opinion survey.

As a financial cooperative, OCTFCU members share ownership of their credit union, and have democratic control (one Member, one vote), electing from their midst a volunteer Board of Directors. All excess earnings are passed along to the Members through competitive rates, expanded products and services, and lower fees.

OCTFCU came to Astron Solutions with the financial welfare of their employees in mind.  Astron Solutions provided an in-depth Compensation Audit, ensuring an up-to-the-minute pay strategy for their employees.
 

 

It’s More than Saying “You’re Fired!” –  Effective and Professional Ways to Terminate Employees

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Donald Trump makes it look so easy. If only terminating an employee could be handled in a five-minute boardroom meeting!   

HR professionals know that the reality of terminating employees can be a long, painful, and costly process.  It’s a treacherous road that must be navigated with extreme caution since the aftermath could result in lawsuits, low employee morale, and other negative consequences.  

Many companies subscribe to an “employment-at-will” policy.  However, they should not assume that this policy means safety from legal liability.  “The fact is, employers who have terminated employees without the proper procedural safeguards have opened themselves to significant legal liability and incurred substantial damages, even in instances where the terminated employee was a poor performer or had engaged in conduct clearly unacceptable in the workplace,” explains Shawn Smith in the HR.com article “Safely Terminating the Problem Employee.”

Nancy Lasater, an attorney who represents employers in employment matters, is quoted in the Business Finance magazine’s article “A Kinder, Gentler (Legal) Way of Firing.”  She estimates that “a wrongful discharge case can last two years and involve upwards of $100,000 – just in legal fees.”  

There are certain steps that employers can take to ensure the termination process goes smoothly:

1.   Prepare all documentation.  As stated in the HR.com article “The Art of Firing – Part III” by M. Lee Smith Publishers, “Review the employee handbook or policy manual to make sure there has been compliance with all procedures.  There is no point in having such a handbook if it isn’t going to be followed in this type of situation.”  It is also imperative that all written warnings, performance evaluations, and other materials be gathered prior to the meeting.

2.   Review the reasons for the firing.  It is wise to review not only the reasons behind the termination but also any potential facts about the individual that could result in a possible discrimination suit.  In “The Art of Firing – Part II”, the author suggests a checklist that includes questions such as “How old is the employee?  Is the employee pregnant?  Does the employee have a disability?  Is the employee a minority?  Has the employee recently filed a worker’s compensation claim?”  If any of these questions are answered with a “yes,” employers must proceed with caution.

3.   Plan the meeting.  Termination is an unpleasant experience for both the one receiving the message and the one delivering it.  The best bet is to keep it short.  According to the HR.com article, “Successful Termination – Is there such a concept?,” the best way to prepare is to write a script to be used during the meeting and also to convey the news to the remaining employees.  The article suggests managers “list two or three factual reasons for the termination.  Keep everything short and to the point.”  If you anticipate an angry or possibly violent reaction, plan to have another staff member in the room with you during the meeting.

4.   Be discreet.  Take the necessary precautions to not humiliate or embarrass the terminated employee.  This includes “being sensitive to timing, i.e., avoiding terminations before vacations, during company Christmas parties, or in the presence of other colleagues,” as noted in the HR.com article “Why Jurors Fire Back During Wrongful Termination Lawsuits,” by Joni Johnston.

“A ‘bad’ firing can be used as evidence of the employer’s animosity toward the employee in a subsequent discrimination, retaliatory, or wrongful-discharge lawsuit. Spitefulness in a termination can be very harmful to an employer’s defense,” says Alan L. Rupe in his Workforce Management article, “Horrors From the Bad-Firing Files.”   In the article, Rupe tells the story of the computer systems engineer who took his eight-year-old daughter to the office with him on “Take Your Daughter to Work Day.”  He was callously fired that day with his daughter sitting next to him in the human resource manager’s office.  They were then escorted from the building. 

Terminating an employee is not an easy managerial task.  It can be done effectively with the right combination of preparation and professionalism.  HR professionals should think of termination as not just an end of a relationship, but hopefully, a new beginning of a successful and productive future for your company.