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Being overly generous on the severance can create more problems than it solves as employees looking to move on can milk it. It is pretty easy for a smart person
by danieltillett 9y ago
Being overly generous on the severance can create more problems than it solves as employees looking to move on can milk it. It is pretty easy for a smart person to get themselves fired if they want to without totally trashing their reputation.
In my experience it is best to fire as soon as you are starting to think about it (people can’t change even if they want), but don’t be a dick. If you have been a good manager and your expectations have been clear then an employee will understand why they are being fired.
If you want to be generous be generous with the hiring bonus. This way everyone is rewarded, not just the bad performers.
- evanwolf 9y agoI've seen the argument that you offer someone enough on exit so that * the leaving person doesn't raise a stink that hurts morale, * you signal the labor market that it's worth taking a risk on your startup (low pain if things don't work out), * you signal other employees and managers that decisiveness is a core value, * the opportunity cost of misapplied talent is so large that you'll pay a bounty for people to "fire" themselves from a role or their job and make room for a better-fitting person.
- danieltillett 9y agoI think giving a large payment (bribe to go quietly) sends all the wrong signals. It shows you are weak (can't handle conflict) and it destroys morale by showing that those that leave are valued more than those that stay. If you want to take out the risk of joining a startup then give a large hiring bonus instead. This rewards everyone and shifts the risk onto the managers rather than the employees.