How to Handle Layoffs, Firings and Exits from your Small Business - Small Business Show 144
Channel: Business Brain — The Entrepreneurs' Podcast
Date: 2017-11-08

When the time comes to let an employee go, what are some best practices to keep your Small Business running smoothly during the transition? Should you worry about how it will impact other employees? Are there rules about how you go about firing someone in your state? Should you apologize to the person you are laying off? Join us on this episode of the Small Business Show for answers to these questions and much more!

Your co-hosts have been to the party, they've seen this movie before and it's not their first Rodeo. Having experiences with firing and laying off employees during their 25+ years in business has made it clear to both Shannon and Dave that how you handle these "Exit" situations can have a profound impact (both positive and negative) on your Small Business.

We start the show with Shannon's belief that in most situations, it's ultimately the fault of management (that includes YOU, small business owner) when you have to fire someone - listen in to find out why and then let us know if you agree with this concept. Then, we dive right into what type of message your actions send to the rest of your employees, how thinking of yourself as a Steward to your employees can help you to frame things correctly and how to handle layoffs that will impact your cashflow.

Even the eternal optimists at the Small Business Show want to warn you about being overly optimistic during these situations and how it can ruin your layoff strategy, along with tips on keeping communication flowing during this type of transition and how to embrace the "art of firing".

Join us today - we have a lot to talk about. Then, come share your experiences on the Small Business Support Group!

Sponsor: StoryBlocks. Get a "Triple Bundle" – images, video, and audio – for the price of one with our special deal. Visit StoryBlocks.com/sbs to get all of this for just $149 for a full year of unlimited access where all content is royalty-free!

Chapters:
00:00:00 Small Business Show #144 for Wednesday, November 8, 2017 
00:01:01 Sponsorships... in the last episode! 
00:01:18 Layoffs and Firing: Letting people go 
00:03:37 It’s a failure on your part 
00:04:52 Sending the wrong message 
00:05:16 Never take this lightly 
00:06:49 You are your employees’ steward 
00:08:13 Your employees see things differently from you 
00:09:35 Two different types of firings 
00:10:01 SPONSOR: StoryBlocks.com/sbs gets you their Triple Bundle for just $149 
00:12:33 Layoffs - the Burn rate vs. the Earn rate 
00:14:15 Don’t let optimism ruin your layoff strategy 
00:16:03 Layoffs: You don’t get to pick who stays, just who goes 
00:17:27 Communicate with everyone 
00:18:15 No closed doors allowed 
00:19:38 Sacrificing yourself first 
00:22:40 No “poor me” cards allowed 
00:23:45 Draw the paycheck and loan it back to the company 
00:24:37 Learn about Basis for your Investment in your Business 
00:25:31 The art of firing 
00:26:53 Employees that can’t transition with your business 
00:30:32 The value of exit interviews 
00:32:04 Do you apologize? 
00:33:14 Be aware of becoming too comfortable 
00:34:09 Don’t do it alone 
00:37:08 SBS 144 Outtro