'You're Fired!'

On a weekly basis, millions of Americans watch Donald Trump direct his imperious gaze at someone and snarl, 'You're fired!' As Trump continues to dismiss these would-be apprentices, the ratings climb. For Trump, 'You're fired!' has become a money-maker. But for Human Resources managers and in-house counsel, 'You're fired' is a dreaded phrase that will bring not an increase in ratings, but an increase in lawsuits. A poorly executed termination exposes the employer to significant liability; even a simple discrimination claim can cost the employer $100,000 in defense costs. Not surprisingly, human resources managers and in-house counsel seek to minimize risk by advising caution in terminating an employee. Sometimes this caution paralyzes the employer, and a poor performer remains straining the organization and contributing to significant morale problems. The costs of keeping a poor performer are no less real than the costs of a discrimination lawsuit, though more difficult to quantify. Many human resources managers and in-house counsel understand and appreciate the risk of firing an employee, but fail to understand and appreciate the risks of keeping the employee. As a result, many poor performers remain in their organizations.