For companies with lots of employees and small businesses with smaller teams, there are always going to be teething problems. The day may come when the employee is underperforming and the role is no longer viable.Ending an employment contract is never easy. There are always various reasons that lead up to this eventuality, but when it comes to actually executing the action, how that happens is a valid question. This post explores when it might be time to act on a termination clause, and what the procedure should be in the run-up.
How to Know When a Contract Needs to End
What are the variables that determine the necessity of a termination of contract for individual employees? Well, there isa whole range of circumstances that may lead to this.
Lack of Engagement
Lack of engagement is a major red flag sign. While it is important to figure out the reasons with an internal investigation, if engagement continues to be a barrier, then it is time to start the conversation about moving on to other employment. Decreased engagement may represent as someone who doesn’t get involved in meetings, fails to deliver on promises, and doesn’t show up when they’re supposed to. It is hard to quantify, but it is easy to spot and when a problem begins, it gets bigger,and often there is no other answer other than to terminate the contract.
Engagement and productivity are closely intertwined. However, productivity factors go beyond just engagement. When an employee stops being productive, their outputs become less valuable. Their work might be full of mistakes and a depleted or noticeably poor effort.
They might not be listening and responding to feedback, and their professional façade begins to slip. If productivity issues are prolonged, everything else starts to fall apart too. Everyone is allowed space to get things wrong, but if there is no light at the end of the tunnel, this becomes a major problem.
Harassment or Poor Behaviour Towards Others Employees
A major red flag is when an employee behaves in a derogatory way toward other employees. This type of incident causes a decrease in morale throughout the whole team and can lead to a bigger problem if left unchecked. There should always be a clear policy and red line on workplace bullying, which has to be followed through to a conclusion for maximum efficacy. When an employee doesn’t respond to reprimand or is called out on poor behaviour, they are a risk to the brand reputation and the well-being of all the other employees.
Frequent Lateness and Missed Deadlines
This ties in with the above points, but it is the biggest deciding factor that leads to termination. When deadlines are missed, and an employee is frequently late to work, it becomes a major barrier to the success of the wider organisation. Everyone in their roles has a responsibility towards the bigger project goal, and if they are falling short, nothing else can function around it properly.
So, What Can Be Done?
Finding a solution is the only way forward. If problems are occurring and no one is finding an answer, it is time to take action in one way or another. There is value in outsourcing the termination process to an external, professional HR company that is able to act on the termination of the contract on your behalf. This creates a clear division between internal and external practices and demonstrates that the business values employee engagement but it cannot allow a slip in standards for any extended period. It sets clear boundaries, and outsourcing the concern means there is a cost-effective, efficient solution so things can continue to move forward.
The Value in Investigations
The issues at hand should always be investigated before any action is taken. An outsourced HR company can also help with this, and it would be a part of their procedure regardless. It is recommended to take action to explore the concerns before the contract is ended so that you are able to avoid things like lawsuits and so on. Investigations can be initial conversations and an increase in performance monitoring in a collaborative way. If the employee engages, things might change for the better. There is always value in allowing room for improvement before termination action is taken.
Learning when it is time to part ways with an employee is an integral part of leading a business to success. There are obvious downsides to poor productivity levels, and when employees are causing problems as opposed to supporting the values and nurturing the outputs of a company, it is time to move on.