Layoffs Stink

There are a few situations in business that really stink for a small business owner. Being defrauded or swindled by an employee or partner is really bad. Being a victim of someone else's crime is way up there. Violence brought to the job by an employee is unconscionable. But what these have in common is they are rare and have to do with crime in one form or another.

But in the regular ups and downs of business, nothing is worse than letting go of an employee. Sometimes you have to sack an employee because they did not work up to expectation. That’s hard. One reason it is hard is because the owner was probably the one who made the decision to hire that person. Now the boss has to admit he or she made a mistake. So the decision to fire an under-performing worker is delayed in the hope that they will get with the program and turn around. That rarely happens.

While there is justification to let go of a bad worker, laying off an employee is much harder. Now you have to sack someone who was doing a good job. It is not for cause. It is for economic conditions that are usually not in the bosses control. The overall economy is in the dumper, sales are down, clients are slowing down payments, we are in a pinch. I have to let you go.

In a small business employees can become like family. Of friends. That makes it worse. Some bosses will delay laying off excess staff in down times because it hurts and is uncomfortable. This delay could kill the business. It can put everyone out of work. And it can bankrupt the business owner personally. Sadly, the burden to make the hard decisions falls on the owners shoulders. It stinks, but that’s the reality.