The New Malpractice

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Craig Waters's article about lawsuits brought by disgruntled employees (Managing People, June) shows excellent insight into the issues surrounding termination of workers. However, Mr. Waters stops a bit short.

Recent court decisions have lent credence to the idea of a personnel manual being enforceable as a contract between employee and employer. Furthermore, the greatest damage to public relations, productivity, and profits comes from the firing of executives rather than blue collar or semiskilled workers. The damage is done in ways less sensational than lawsuits. However, the released executive is often the heaviest albatross that management (and the profit line) of a company must bear.

There is, however, another way to stay out of court that wasn't mentioned in the article. More and more, longsighted executives have begun to negotiate outplacement as part of their severance package when they first join an organization. Using an outplacement firm to relocate a fired executive can defuse many of the most heated issues The actual "termination meeting" becomes easier on all concerned. The fired man or woman becomes appropriately reemployed with less frustration and personal trauma. Furthermore, the company insulates itself from the problems of costly severance, poor morale, and loss of productivity.