An article by Michael Hasler in HR Profi
In many companies, the formal framework for managing separations is well established, yet many separations often fail due to leadership shortcomings. Terminations are frequently handled administratively but not actively managed. Terminations are not merely a process; they are the moment when leadership comes to the fore: The way a company handles terminations reveals how it leads. Effective leadership always takes into account both levels of a conversation—the factual and the emotional.
The breach of trust often arises in the run-up to the event
When termination processes are difficult, the cause rarely lies in the actual conversation itself, but rather in the leadership that preceded it. Typical patterns—such as performance reviews that are overly positive and go on too long, a lack of clarity, or the avoidance of conflict—create false expectations. For those affected, the biggest problem is often not the termination itself, but the disconnect in perception. Those who fail to lead clearly in day-to-day work consequently lose credibility at the decisive moment.
Keeping an eye on three stakeholder groups at the same time
Anyone who handles terminations must always manage three different realities at the same time:
- The employees who were laid off: They are experiencing the most intense emotional strain, which often involves not only job insecurity but also questions of identity and future prospects.
- The remaining employees («survivors»): They are deeply affected by this, closely monitor how management handles the situation, and draw direct conclusions from it regarding their own safety, fairness, and trust in the company.
- Managers and HR: Together, you are responsible for the technical, organizational, and emotional aspects of the process.
The real impact is felt by the «Survivors»
Whether a separation has a long-term impact on the company depends not on those who are let go, but on the remaining employees. Poorly managed separations create uncertainty among them, hinder performance, and increase turnover. Well-managed separations, on the other hand, create clarity and stability. The culture of separation is a reflection of leadership culture, and an employee’s departure is a decisive moment for an employer’s credibility.
Leadership doesn't end with termination
Many organizations view termination as the end of the process, yet this is precisely where a critical phase begins. Support services help stabilize employees who are under significant emotional stress in this exceptional situation immediately following the meeting and help them cope with their initial reactions. Outplacement goes a step further and supports structured career reorientation. Companies that consciously implement these measures take responsibility and strengthen their reputation in the long term, because a separation should end the contract, not the employee’s future prospects.
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