If you’re familiar with Gino Wickman or have even read his book, Traction: Get a Grip on Your Business, you might’ve heard of the concept of “36 hours of pain.” The founder of the Entrepreneurial Operating System (EOS) primarily uses this concept regarding employee terminations.
In his book, Wickman shares a story from a friend who delayed firing a long-time employee for months, which caused more stress. But once he finally decided to let the employee go, Wickman’s friend realized there were only 36 hours of pain carrying out the termination and managing the transition. Then it was over, and the business owner, his team, and the entire company were happier—and so was the person he fired.
We’ve seen similar cases with many of our clients. These business leaders often see the writing on the wall for months and even years. They’ve done the documentation, performance improvement plans, coaching, and so on—yet still won’t pull the trigger to fire a problematic employee.
Why? Out of fear of turnover, how it will affect company culture, and repercussions like legal action.
In fact, this happened with one of our clients who had a long-standing employee that he’d been unhappy with for years. The employee had been unhappy for years, too. While the employer was practically sick to his stomach leading up to the decision and conversation, the termination meeting was over in less than an hour. Afterward, the client felt like a weight was lifted, and the rest of the team was happier!
Let’s dive into why small business owners simply can’t afford to procrastinate on firing employees—and when it’s time to have the tough but necessary discussion.
Why Do Employers Wait to Fire Employees?
So, why don’t bad employees get fired? The common culprits that we see preventing employers from terminating underperformers include:
- Being uncertain of the outcome and if they’re making the right decision
- Afraid of blowback like lawsuits and reputational damage
- Effects on the rest of their team and company culture, resistance
- The cost of replacing them (which can cost between 30% and 200% of the departing employee’s salary)
And while we understand these concerns and taking the time to properly evaluate employee termination decisions, it’s simply not worth it! Recent research by Gallup shows that the global cost of disengaged employees has soared to $8.8 trillion annually.
A former Gallup State of the American Workplace report found that disengaged employees have a 37% higher absenteeism, 18% lower productivity, and 15% lower profitability—which equates to the cost of 34% of a disengaged employee’s annual salary (that’s $3,400 for every $10,000 they make).
You can see how quickly it adds up!
Embrace 36 Hours of Pain
Hopefully, you’re starting to see why “ripping off the bandage” is often a better approach when it comes to employee terminations. It will be uncomfortable for a short amount of time but positive for the long run.
You have a responsibility to the success of your company as well as your employees, customers/clients, and other stakeholders. Yes, you should ensure your planning, documentation, and communication around terminations are thorough and appropriate—but that doesn’t mean you should prolong the inevitable when you know what the right decision is.
Keep in mind that once you get through that 36 hours of pain, you’ll see a boost in employee productivity and satisfaction, making for a significantly improved work environment.
Know When to Fire an Employee
So, how DO you know when it’s time to fire someone? You can typically find the answer by asking yourself these questions.
Have you put in the work and given them multiple chances?
In other words, you’ve thoroughly looked at why you’re unhappy with the employee and taken steps to support them and improve their performance. This could mean extra training, coaching, a performance improvement plan, or disciplinary action. Despite these efforts, however, the employee is not meeting expectations, and the situation is not getting better.
Are they costing your company productivity—and, therefore, money?
Whether the individual in question is underperforming due to a lack of skills or has an attitude problem, they’re affecting your bottom line. The stats above show that underperforming and disengaged workers can lead to significant productivity loss. This can have a major impact on profitability, which small businesses feel even more because they don’t have enough people to make up for the underperformer’s slack.
Has the position grown?
As businesses grow, so do roles and responsibilities. Perhaps the role has grown, and the employee can no longer fulfill your needs. If you’ve provided resources and development and even offered them opportunities to move laterally, yet it’s still not a fit, it’s time to move on.
Would you hire them again?
Go with the first answer that pops into your head—if it’s no, then you probably shouldn’t keep them now. Hiring is challenging, which is why firing poor employees is even more important than hiring! Despite how well you interview candidates and what type of assessments you use, many still lie and embellish during the application and interview process. And sometimes, people simply change over time. So, if you wouldn’t hire the employee as they stand in front of you today, then it’s time to let them go.
Have you evaluated the risk?
If you’ve:
- Consulted with your HR and legal teams to ensure the employee termination is compliant (i.e., for just cause and non-discriminatory)
- Documented all efforts like performance reviews, coaching, and corrective actions
- Determined that you would terminate any other employee for the same issues
…then you’ve covered your bases—and you have one more sign that firing the employee is the best decision. It’s time to get your employment termination checklist in order and prepare for the tough conversation.
The Best Approach to Employee Terminations: Rip Off the Bandage
Delaying the termination of an underperforming employee may seem like a way to avoid discomfort, but it often causes more harm to your business in the long run. As Gino Wickman’s concept of “36 hours of pain” highlights, the short-term discomfort of letting someone go is far outweighed by the long-term benefits of a more productive, engaged team.
If you’ve followed the right steps—evaluating performance, providing opportunities for improvement, and consulting with your HR and legal teams—you owe it to your company and your employees to take action.
If you’re struggling with when and how to make these tough decisions, BlueLion is here to help. Contact us today for expert guidance on navigating employee terminations with confidence and compliance.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
