When a business owner asks me what to do with a troublesome employee, my first answer is not, “Fire them.” My first answer is, “Show me your documentation.”
This post exists because an associate asked me a practical question after taking my hiring course: What should I go through before firing someone? My answer is simple. You need guidelines, documentation, and a clear warning process before you make the final decision.
Start With Written Employment Guidelines
Quick Answer
Before firing an employee, I recommend that you confirm the employee violated a written employment agreement or written personnel policy, document the repeated transgressions, and give verbal or written warnings before termination.
The key point is that firing should not be based on a vague feeling or personal irritation. It should be tied to a clear written standard the employee was expected to follow.
This is one reason I place so much emphasis on hiring and setting expectations correctly from the beginning. If you want to strengthen that front end of the process, my guidance on hiring right the first time is a good companion to this discussion.
Why the Written Agreement Matters
If you do not have a written agreement or written personnel policies, you weaken your own position. You need something more concrete than simply saying the employee annoyed you or did something you did not like.
A written agreement gives you a basis for action. It helps you point to the procedure, expectation, or term of employment that was violated.
Document Every Transgression
The second thing you need is documentation of what the employee did. When the employee exhibits behavior that is not acceptable to you or the company, write it down.
For the first one or two times, I recommend documenting the issue clearly. That record matters because it allows you to show a pattern rather than relying on memory.
This same practical discipline applies across small business leadership. If you are building stronger management habits, the ideas in small business leadership fit naturally with this step.
What to Record
At minimum, write down what happened, when it happened, and which employment term or personnel policy was violated. Keep that information in the employee’s folder so you can refer to it if the issue continues.
The purpose is not to bury the employee in paperwork. The purpose is to protect the company by creating a clear record of unacceptable behavior and how it relates to your written standards.
Use a Three-Step Warning Process
I recommend using a three strikes approach. The first one or two times, document the problem. By the third time, counsel the employee directly and show them the prior transgressions in their folder.
In that counseling conversation, tell the employee that the behavior violates a specific procedure or term in the written personnel policies. The employee needs to understand that the issue is not personal. It is tied to documented conduct and written expectations.
Step Breakdown
- Develop written guidelines and personnel policies.
- Document the employee’s transgressions as they occur.
- Give verbal or written warnings tied to the terms of employment.
- If the same issue continues after the third warning, termination may be the next step.
This process also depends on having the right supervisors in place. If your supervisors are inconsistent or poorly selected, your documentation and warnings may become inconsistent too, which is why I also recommend reviewing techniques for selecting a supervisor.
Be Ready If the Employee Challenges the Termination
I have seen cases where employees challenged employers after being fired. These situations can wind up in a state labor commission office, and the employer may not always have the advantage.
That is why the written record matters. If you are challenged, you want to be able to show that you had policies, the employee violated those policies, and you handled the warnings in a consistent way.
When the situation is sensitive, it is wise to slow down and make sure your file is complete before acting. For broader practical business support, you can also review the resources available through Biz Success School courses.
Short Clarification
The goal is not to make firing easy. The goal is to make the decision disciplined, documented, and tied to the expectations the employee already had in writing.
Mini FAQ
What should I do before firing a troublesome employee?
Develop written guidelines, document the transgressions, and give verbal or written warnings that connect the conduct to the employee’s terms of employment.
How many incidents should I document?
I recommend documenting at least three transgressions before termination, especially when the conduct repeats and violates written policy.
Should the warning be verbal or written?
The transcript supports either a verbal warning or a written warning. The important point is that the warning is tied to the employee’s terms of employment and is clearly documented.
What if the process still does not work?
If the process does not work, and you need help thinking through the next step, you can reach me through the Biz Success School contact page.
Final Wrap
The core lesson is simple: do not fire from frustration. Fire, if you must, from written guidelines, documented conduct, and a warning process the employee had a chance to understand.
This blog is a companion to the transcript below, where I walk through the practical steps I recommend before firing an employee.
Transcript:
0:01
Excuse the introductory call cough. This is John Heinrich from the Small Business Success School. A few weeks ago, an associate of mine asked me, “I’ve taken your hiring course, and I’ve used it, but what do I do with a troublesome employee? That I think I want to fire. What should I go through?”
0:22
The purpose of this video blog is to tell you what you go through. First of all, you should have written down every transgression that you thought the employee did and how that’s a violation of the employment agreement that you hopefully had written down with the employee, because if you don’t have a written agreement, you don’t have any basis on which to fire the person, other than his or her parting your hair the wrong way on last Tuesday.
0:52
So those are the two things you need. The second thing you need is a document, again, documentation of what the employee did. We recommend that for the first one or two times that the employee does it or exhibits behavior that is not acceptable to you or the company, you write it down.
1:12
Then, using the three Strikes Law, we would say that you should counsel the employee the third time on the same thing or whatever the transgression was, and tell them, “This is a violation of whatever procedure you had in your written personnel policies”, and you haul out their folder and show them the two prior transgressions. Now, if that doesn’t work, then I think you are within your rights to terminate them.
1:46
We’ve had cases where employees have actually challenged and put up employers on firing cases, and they usually wind up in the state Labor Commission office, which even in Arizona tends to favor the employee. And if you’re doing a DEI case, like the one that I can think of most recently, the person being fired, if it fits into the DEI category, you’re probably going to lose unless you get a really sympathetic judge, which under the current democratic administration of the state is not going to happen.
2:20
So, there are basically three things you do. You develop guidelines, you document the transgressions, at least three of them. Then you give the employee in each of the three cases: a verbal warning or a written warning, that they violated their terms of employment.
2:39
And if they do it the third time, then you’re going to fire them. So hopefully that helps. I’m doing it in my Joe Rogan t-shirt here, so if he can do it, I can do it. Hopefully, you will take a look at the books back there, which I just keep back there, and the degree that you can see up there over my right shoulder.
3:03
We know what we’re doing. This is what we would recommend you do in this case. Try it out. If it doesn’t work in some cases, and we know that it has, in cases that we’ve helped with clients give me a call. 480-200-5678. Thanks a lot.