The #1 Mistake I Made Firing Employees: A Lawyer’s Confession

The Lesson from an HR Expert Named Lori

After hiring well over a hundred employees, I learned a technique from an HR expert that transformed how I handle terminations. Lori told me two things: First, nothing you say during the firing conversation will make the employee feel better—so do not drag it out with compliments or extended dialogue. Keep it short. Second, use six words that change everything: “For the reasons we discussed.”

What the Phrase Requires

“For the reasons we discussed” only works if you have actually had the prior conversation. Before any termination, there should be a meeting where you clearly state the expectations of the role, explain how the employee’s performance is not meeting those expectations, and give them an opportunity to correct course. You might even ask the employee to repeat back what they heard—so the expectations come from their own mouth. Follow up with an email documenting the key points.

The Termination Conversation Itself

When the time comes, it sounds like this: “This is a difficult conversation, but for the reasons we discussed, we are letting you go. You can meet with HR about any procedural questions. Here are the next steps.” That is it. You do not rehash every issue. You do not list reasons. You reference the prior conversation and move forward. The employee already knows why—you told them before.

When You Can Skip the Prior Conversation

If an employee steals money or commits an egregious violation of trust, you do not need a preliminary meeting about expectations. The expectations were clear—they are written in law and company policy. In those cases, immediate termination is appropriate. But for performance issues that are not intentional or egregious, the prior conversation is what makes the termination clean, clear, and legally defensible.

Video Transcript

What Is the Biggest Mistake I Made When Firing Employees?

I have probably hired well over a hundred employees. And in that time, statistically, you run into some employees who don’t do the job well. They don’t do it right. They are not a good fit for the team. Something along those lines.

Expert’s Advice

And I remember speaking with an HR expert one time. Her name was Lori, and Lori taught me a brilliant concept that I want to share with you today that makes it so much easier to let employees go. It removes some of the awkwardness and pain for the employee leaving, it removes some of the awkwardness and pain for you as the one letting them go, and it protects you from a legal standpoint as well.

A Proven Technique for Employee Termination

And here is the technique, she said, “Whenever you let somebody go, remember nothing you say is going to make them feel better. So don’t drag it on. Don’t compliment them. Don’t sit and say a bunch of things. That creates a confusing message, and the whole conversation is awkward. They just want to get out of there. So make it short.” 

And then the second piece, and this is the most powerful, she said, “Use this line: ‘For the reasons we discussed.'” I will give you an example: 

“Hi, Jim. I wanted to talk with you today. This is a difficult conversation, but I wanted to let you know, for the reasons we have discussed, we are letting you go. If you want, you can elaborate for a sentence or two more. You can meet with HR about any procedural questions you have, but here are the next steps, and then you lay those out. You will be given an opportunity to go to HR and clean out your desk and take your personal belongings. And this is effective immediately.”

It doesn’t always have to be effective immediately, by the way. I have had many employees where I give them days or even weeks. It really depends on the maturity level and the risk of the employee.

Setting Clear Expectations

But here is the magic of this phrase, “For the reasons we discussed.” And why is that so important? First off, it means that you have already discussed those reasons. That the reasons are very clear. And what that entails is a prior meeting where you explain to the employee, “Here are the expectations of the job, and here is how your performance is not matching those expectations. For you to continue to be in this role, your behavior needs to match the expectations.” And so that way, when you have that conversation about letting the person go, you say, “For the reasons we discussed.” You are referencing the expectations for the job and how their performance or behavior is not matching those expectations. 

Now, obviously, if they steal money or do something like that, you don’t have to have a conversation about how their behavior doesn’t match the expectations. The expectations were clear. They are written in the law. Often, they are just let go immediately.

Understanding of Role Expectations

But where their performance is below what is expected but not necessarily intentional or not egregious or not a violation of trust. But let’s say, for example, you expect a certain level of productivity and they are below that level. You want to make it very clear what the expectation is. Sometimes in that initial conversation, you even ask, “I want to make sure that I am clearly communicating what that expectation is. Could you share with me what you are hearing from me?” And that way, it is coming from their mouth. You might even consider following up with an email afterward that says, 

“Hi Jim, I appreciated talking with you today. For your reference, here are some of the key points regarding the expectation for your role, and it is important that your performance aligns with that expectation.”

And then you might list some bullet points regarding the expectation. That way, when you have the next conversation, you say, “For the reasons we discussed.” Jim, or the employee, knows exactly what you are talking about.

Why “For the Reasons We Discussed” Is a Game-Changer

The performance of the employee isn’t matching the expectation of the role. And you had an opportunity to correct that, and it wasn’t corrected. And you might even say, “For the reasons we discussed, the job requires performance at this level or this sort of behavior, and your performance hasn’t matched that over the last few days. So we are letting you go” And you can give them an opportunity to ask any questions they have. But that line “For the reasons we discussed.” Is one of the greatest little nuggets that I learned about how to make the firing of an employee more effective and clear and eliminate some of that awkwardness of dragging it on and having to talk about all of it. You don’t want to get into all the details. You just simply reference it, “For the reasons we discussed. In light of the fact that your performance has not matched those expectations, we are letting you go.”

Conclusion

If you would like more information about any of these topics today, if you are interested in a business owner and getting educated on common mistakes business owners make and how to avoid them yourself, you can go to aaronhall.com/free and sign up to get a number of videos and other resources to help equip you to prevent problems in your business.

This is for entrepreneurs, startups, business owners, and CEOs. Generally, I am thinking about companies with under 500 employees, even as few as one or two, because for you as a business owner or a future business owner, you can either prevent these problems or pay the much more expensive cost of having the problem and having to clean it up afterward. 

The purpose of this YouTube channel is to help you avoid problems, grow your company, provide great value to your customers and clients, create a great environment for the people that you work with, and experience the success that comes from having a good company built on best practices.

I am Aaron Hall, an attorney for business owners and entrepreneurs. If you have questions about any of this, feel free to put them in the comment section below. Look forward to seeing you next time.