Reason for Termination
Voluntary
_ Another Position
_ Personal Reasons
_ Relocation
_ Retirement
_ Return to School
_ Other
Involuntary
_ Attendance
_ Violation of Company Policy
_ Layoff
_ Reorganization
_ Position Eliminated
_ Other
Additionally, the exit interview form should contain sections that record the comments of the interviewer and a section for the departing employee to fill out stating their side of the story along with a place for them to sign acknowledging that they understand the reasons. The purpose is to offer the opportunity for fair access to the employment record. The employee may feel unjustly terminated and, without being given the chance to state their side of the story, could walk away with a bad feeling about the company that could result in negative publicity or legal action for the firm. While it is likely with involuntary terminations that bad feelings will result, the purpose of the exit interview is to, as much as possible, mitigate those feelings and permit the employee to, at the very least, fully understand the circumstances surrounding the decision to terminate their employment.
In cases where the termination is due to circumstances outside of the employee's control (such as the elimination of a position); it may be prudent to offer to help in the placement of that employee with another firm. This help may be predicated on the longevity of the employee with the firm and the applicability of that person's skill set to another firm's needs. But at the very least it constitutes a best-efforts attempt to help that should leave that departing employee with a better feeling about the termination.
Certainly, the financial considerations are also a way to leave a departing employee with a more favorable impression. Calculating what is fair and just in compensating the terminated employee is a key issue. In cases where the termination is for cause, the financial compensation should be limited to what is actually owed to the employee (such as accrued vacation time, unpaid compensation, etc.). With the employee who is terminated due to other reasons (such as the position being eliminated), consideration should be made for some forward compensation in addition to the accrued benefits. This forward compensation may be calculated based on longevity (more than five years on the job qualifies for "X" weeks' severance, etc.). But it is critical to pre-document this scale in an employment manual with all the qualifiers.
In the end, the goal of a termination is to leave the firm in a better place and to, as much as possible, leave the departing employee with a good feeling after the termination. Obviously, there are times when this may not be possible, but that is the goal. Fully documenting the reasons for termination and taking all the necessary steps can prevent future issues or security problems and protect the firm going forward.
David L. Lawrence, Ph.D., is founder and president of Efficient Practice, a consulting firm that provides financial practices, broker-dealers and independent firms with comprehensive, profit-driven efficiency consulting and resources. For details, visit www.efficientpractice.com.