If you’ve read my previous columns in Spotlight on Business, you’d know that I write about building and maintaining relationships as well as tips and tricks for networking. One aspect of relationships in business that isn’t talked about very often is how to properly end one. It happens. It’s very rare that a customer will sign up for life or that an employee will dedicate their entire life to your company, at some point, almost every relationship will come to an end. More important than how it started is how it ends. A lesson most people learn early in their careers is not to burn bridges. In this article, I’ll discuss how you can avoid ending relationships in a negative manner that can lead to future headaches and missed opportunities.
There’s a reason why big companies have entire HR departments, procedures, and policies in place to deal with dismissing employees. One wrong move can spell big problems for a company if employees are not properly terminated from their positions with just cause and or compensation. Employee lawsuits against a big company can lead to big settlements or damaged reputations. For smaller companies and startups, it’s mainly the business owners or the founders who need to be educated on employee rights and are actually the ones who have to deal with the dismissal process themselves. It’s arguably more important for smaller companies to get this right as lawsuits or damaged reputations could lead to bankruptcy if not handled properly.
One thing I’ve learned as a business owner is to lead with compassion and to put your pride to the side when dealing with employee dismissals. I still remember the first time I had to let an employee go. I was really anxious and uncomfortable, but you have to remind yourself that it’s a business move and it can’t come off as personal no matter what the employee has done to justify the dismissal.
In any event, you want to present yourself in a professional manner, get to the point, and be compassionate about the decision. Be clear on the next steps and in most cases offer yourself as a resource for the employee seeking future employment elsewhere. How you as an employer handle this situation will in most cases determine how that employee speaks about you and the company in their future endeavors. It’s never a good look for a company to have past employees speak in a negative manner about their experience as an employee. This can discourage future employee prospects from applying to the company and can even get back to customers which can lead to loss in revenue.
On the flip side, as an employee, whether you make the decision to leave the company or you are dismissed, it’s important to approach the situation in a professional manner and that you express gratitude for the opportunity. Transitioning out of the role is also very important, handing off clients or tasks and making sure that all tools and intellectual property are returned or remain confidential are essential in leaving on good terms. More times than not, a future employer will call a past employer for a reference and if you make a mess of this process, it will not reflect well on you or your chances of landing the prospective role.
The way a company manages losing a customer is also very important for similar reasons as mentioned above. As a company, you do your best to provide the highest level of customer service and satisfaction but for a variety of reasons customers will still leave. When this happens there’s often an opportunity if handled correctly to get feedback to be able to improve while also leaving the relationship on good terms. The worst thing that can happen is bad communication and lack of professionalism on the company’s part that can lead to the customer speaking poorly about their experience within the industry. Your reputation as a company is paramount so treating your current customers and customers that leave with the same level of respect is just good policy.
There are many other examples of different types of relationships within business that will inevitably come to an end but the ways in which you handle them are relatively similar. No matter what side of the table you are on or how long the relationship has taken place, the following characteristics should always be practiced.
Lead with empathy and compassion while being professional about this situation. Always be respectful and think about how your words, body language, or actions could be perceived. Play the long game and avoid burning bridges that could come back to haunt you in future scenarios. Lastly, always express gratitude and try to learn from each experience.
by Kris McCarthy