Banking industry veteran, Rita Facchini, has joined Bloomfield Hills-based Mi BANK as senior vice president. Facchini brings extensive experience in construction lending, investment real estate financing, and medical/dental practice lending. Mi BANK officially opens Tuesday, May 28, 2019.
Two forward-thinking transit advocates talk about what a future ‘beyond the automobile’ could look like
While any Michigan native can tell you our state is the birthplace of the automotive industry, far fewer know that public transit was alive and well in Detroit in the 1860s. Back then it was horse-drawn trolleys, which eventually gave way to electric streetcars in the 1890s. In both Southeast Michigan and West Michigan, public transit as we know it was born in the 1960s. Today, The Rapid in West Michigan and SMART in Metro Detroit are combining to help millions of riders get to work, school and other destinations.
For this issue focused on mobility, Corp! spoke with John C. Hertel, general manager of SMART (Suburban Mobility Authority for Regional Transportation), and Andrew Johnson, named CEO of Interurban Transit Partnership (The Rapid) in 2018.
Corp!: Looking back on 2018 what success story stands out?
John Hertel: SMART put into effect the express bus system, FAST [Frequent Affordable Safe Transit]. They are operating on Gratiot, Woodward and Michigan Avenue. From downtown, you can ride the FAST Michigan Avenue route to Detroit Metro Airport, which is the first major public transit system to actually serve the airport. Most significant is that our weekly ridership on those three routes is up 40 percent. Our weekend ridership is up 80 percent. We also have free Wi-Fi on all the FAST buses.
Andrew Johnson: I started in August, but prior to my tenure, The Rapid was able to get the capital investment grant released by the federal government to get the Laker Line funded. At the end of 2018, we received a $696,000 grant from the Federal Transit Administration as part of a new $945,000 effort to plan for development along the Silver Line Bus Rapid Transit route, focusing on the Division Avenue corridor from Wealthy to 60th streets. The Silver Line is Michigan’s first bus rapid transit route.
Corp!: What is on the horizon for 2019?
AJ: We will break ground on Laker Line. We are also looking to expand our compressed natural gas fleet. At our compressed natural gas fueling station, we are looking to expand and add a retail component so other users of compressed natural gas can fuel at the stop. We will be doing a transit-oriented study in the Silver Line corridor to look at how we can spark further development in the community, as part of the FTA grant. It’s a joint project between The Rapid, Grand Rapids, Wyoming and Kentwood. We are looking at this as a game changer.
JH: We have something called “Get A Job, Get A Ride!” If a business signs up for the program, when someone is given a new job, the person who gets the job is offered a one-month free pass to ride the SMART bus to work. We would like more people to use that. [Editor’s note: employees must meet eligibility requirements.]
We have the second smallest millage of any bus system in Michigan – 1 mill – and we have the largest square miles to cover. We have to apply most of our money to services. And our number one priority is to provide services to get people to work. We serve 850,000 jobs in the region and 70 percent of our riders every day are using SMART to get to work.
Corp!: When speaking to business leaders, how do you make the case for the value of public transit?
JH: I point out how successful public transit is in some of the major economic centers in the country. In every case, you can look at their public information and find that the more that was done to create a better system, the more jobs were created and larger profits were realized in those regions. From all the (industry) surveys, we know real estate values go up on properties near public transportation and young people graduating from college are not as interested in owning automobiles and are more interested in getting access to public transit.
AJ: The model that we currently have, and have had for many years, where we build large parking lots/ramps where everyone drives into work and drives home, is an antiquated model. We need to find new ways for employees to get to work. We want to give people choices, to get more and better qualified employees to worksites and to meet the needs of the new generation of employees who don’t want to own a car. We want to work with employers to find a way to offer good transportation to their employees and their business.
Corp!: How does your system support businesses, employment and economic development?
AJ: Last year, we unveiled Route 19, a partnership between The Rapid, Grand Rapids and Spectrum Health. Spectrum wanted to know how to get larger numbers of employees in and out of their facility. We created a route that serves remote parking lots, Spectrum and facilities along the Medical Mile. Route 19 is a completely different version of the route that existed before. It was serving about 54 people a day. Now it’s serving 1,100 people, primarily employees getting to and from work.
JH: Over last three years, we have worked cooperatively with Detroit Mayor Mike Duggan, who used to be head of SMART years ago, to coordinate the DDOT system with SMART and it’s working a lot more cohesively. One of the reasons it needs to is that 50 percent of people who live in Detroit and have jobs, work outside of Detroit and they need SMART to get to work. Two-thirds of people who work inside of the city limits come from the suburbs and they need SMART to get to work.
Corp!: As autonomous vehicles, rideshare services and mini-mobility are all developing, what do you think the future holds for public transportation?
JH: I actually think all those things bode well for public transit. The reason is those are all tentacles. The public transportation is the backbone. If you don’t have a strong backbone, the tentacles are not going to work. What you need is the strong corridors that move more people faster and more comfortably and at the same time, they become feeders for all these things.
AJ: Public transportation is in a great state of change. At The Rapid, we are shifting from public transportation to mobility coordination. Really, my vision for the organization is not to simply be buses and paratransit vans. We want to be a provider of mobility outcomes. With the state of disruption in the transportation area, there are new options popping up all the time and we have to integrate new choices for people.
Corp!: What is your guiding principle to live by?
AJ: My guiding principle really is to be fair, to treat people well and to serve. What I do benefits the community and people around me and that’s why I do what I do.
JH: I actually have two guiding principles. One is that (since age 22) I wanted to be involved in public service. The other is that family and friends are the most significant part of my personal life.
Corp!: What is the biggest management myth?
JH: I personally believe that you do not get the best results from people by constantly standing over them and checking on them and having all kinds of programs to check on them. You need to let professionals have some space and you need to demonstrate confidence in them by letting them have the freedom to utilize their talents and show you what they can do.
AJ: Delaying anything because everything is not perfect is not in the interest of the community. You have to be realistic with the resources you have available to get the best result.
Corp!: What is the most important lesson you have learned in business?
AJ: No matter how great the challenge seems, there is a way to resolve it. Getting too upset about things is not the best course of action. I didn’t always understand that early in my career.
JH: If you can create circumstances where people are going to rub shoulders with each other, you create a society where there is a lot better feeling and more cooperation. We have a society where people are more isolated and looking more at screens.
Corp!: What is your pet peeve in the office?
JH: Coming in to a stack of email.
AJ: Not being informed of things on a timely basis. I can handle bad news without too much trouble, but I don’t like surprises.
Corp!: Who is the most interesting person you’d like to meet and why?
AJ: Rosa Parks is very interesting to me, because of her impact on public transportation and how she shaped this business that I love so much.
JH: I would have liked to have met John F. Kennedy.
Department of Labor takes another swing at raising the overtime salary level
As Yogi Berra, the great baseball sage, famously quipped: “It’s like déjà vu all over again.”
Business leaders may recall that in May of 2016, the United States Department of Labor (DOL) issued a “final” rule doubling the minimum salary threshold under the Fair Labor Standards Act (FLSA) to be exempt from overtime eligibility, from the current level of $23,660 to $47,476 per year.
Business groups lined up against this exorbitant increase and the usual suspects in the organized labor movement applauded the estimated 4.2 million employees who would now be eligible for overtime pay who had heretofore been considered exempt.
With the effective date of the change approaching on December 1, 2016, employers scrambled to analyze their exempt positions and potential liabilities as a result of the change. Companies had to make the difficult decision: to either increase the salaries of exempt positions (to maintain the exemption) or leave the salaries unchanged.
The latter choice would require employers to constantly monitor hours worked to avoid significant overtime liabilities.
After U.S. employers spent untold millions preparing for compliance with the new rule, an injunction was issued staying its enforcement. The rule was ultimately declared invalid by the United States District Court for the Eastern District of Texas. The DOL appealed, but after the 2016 election, with its change of administrations, the Fifth Circuit Court of Appeals dismissed the DOL’s appeal (at the DOL’s request).
The DOL under the Trump administration continued to review the issue, floating various more modest increases in the salary threshold to business and labor groups. On March 7, 2019, the DOL finally announced it was formally rescinding the 2016 rule and proposing a new Rule that would increase the minimum salary needed to qualify for the so-called “white collar” exemptions to $35,308 annually. It is estimated by the DOL that 1.1 million additional workers would qualify for overtime pay under this more modest increase in the salary threshold.
For background, the FLSA’s white collar exemption excludes executive, administrative, and professional employees from the federal minimum wage and overtime requirements. However, to qualify for one of these exemptions, an employee generally must pass both a “salary” test and a “duties” test. The salary component is actually in two parts: first, to be salaried, the employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed. Second, the predetermined salary must meet a certain threshold (as noted, currently $455 per week or $23,660 per year).
The duties test (which is not impacted by the current rule change proposal) focuses on the primary duties of the position at issue. To qualify under the “executive” exemption, the employee’s primary duty must be managing the company or managing a recognized department or subdivision of the company. The employee must also direct the work of at least two full-time employees and have authority with respect to hiring and firing. To qualify under the “administrative” exemption, the employee must exercise discretion and independent judgement and the employee’s primary duty must be the performance of office or non-manual work directly related to the management or business operations of the employer or the employer’s customers.
Under the “professional” exemption, the employee’s primary duty must be the performance of work requiring advanced knowledge in a field of science or learning. The FLSA regulations go into significant detail examining all aspects of the various duties tests.
The Notice of Rulemaking sets forth two interesting changes to the current salary basis regulations. First, the Rule includes an amendment to allow employers to use nondiscretionary bonuses and incentive payments (including commission payments) to satisfy up to 10 percent of the new salary level.
Secondly, the DOL also proposes to increase the minimum annual compensation requirement for exempt “highly compensated” employees. Highly compensated employees are exempt if they perform at least one of the duties of an exempt executive, administrative, or professional employee identified in the standard tests set forth in the FLSA regulations. Currently, to be exempt as a highly compensated employee, an employee’s total annual compensation must be at least $100,000. The new minimum proposed by the DOL will be $147,414. This “total annual compensation” must include at least $679 per week paid on a salary basis. Total annual compensation may also include commissions, bonuses, and other nondiscretionary compensation.
Not surprisingly, missing from the new Rule is the controversial provision of the 2014 rule containing automatic increases in the salary threshold every three years, commencing in 2020. Instead, the DOL announced its intent to issue further proposals to update the salary thresholds for the white collar and highly compensated employee exemptions once every four years.
The DOL has requested public comment on the proposed Rule. The comment period will begin once the Notice of Proposed Rulemaking is officially published in the Federal Register and will remain open for 60 days thereafter. If it is enacted, the proposed Rule will likely be effective in early 2020. Companies who wish to be proactive should consider the following steps in anticipation of the new Rule:
—Review the current salaries of all your exempt employees.
—Analyze which employee salaries you can and/or should raise in order to retain the exempt status.
—Determine the impact of these increases on your company’s labor budget.
—Review the hours worked by your exempt employees and determine the costs involved if these employees were converted to hourly and paid overtime.
—Examine whether you will decrease the hourly rate when you convert employees from salary to hourly (so that total annual earnings remain constant).
Companies with questions concerning these changes should consult with their experienced employment legal counsel for assistance.
Steven K. Girard is an attorney in the Grand Rapids office of Clark Hill PLC, specializing in the firm’s Labor and Employment Practice Group. He represents a variety of clients with most of his work involving the negotiation of collective bargaining agreements.
Student loans just part of debt millennials are piling up
Lisa Gavan knows all about student loan debt.
The Grosse Pointe Woods native recently completed her master’s degree in arts administration, with a focus on nonprofit leadership, from Eastern Michigan University, and she carries some $25,000 in student loan debt spent earning it.
Gavan, who also earned her certified nonprofit professional credential from the Nonprofit Leadership Alliance, said that while she’s “very proud of myself,” her level of debt is a huge concern.
“I’m now working a part-time job in the nonprofit world and several contract jobs in the entertainment world,” said Gavan, who now resides in Northville Township. “I am also on Medicaid because I don’t make enough money to afford proper health insurance.
“If I make too much money I lose my health insurance, but can’t actually afford a plan that covers what I need,” she added. “Between bills and working several jobs, I don’t expect to be out of debt any time soon.”
Gavan certainly isn’t alone, particularly among millennials. According to a study of 1,000 people between the ages of 23 and 38 conducted by LendEDU, a Hoboken, N.J.-based online service (www.lendedu.com) that helps consumers learn about and compare financial products, the average American borrower has nearly $28,000 in student loan debt.
It’s not just student loans
Student loans obviously aren’t the only way people are racking up debt. According to the study, conducted March 1-2, the average American owes $5,472 in credit card debt and has $201,811 of mortgage debt.
“It is no secret that in the United States, debt is a huge component of our economy and it is in abundance amongst American consumers,” said LendEDU’s Mike Brown, who uses data to identify emerging financial trends, in explaining the study. “If used responsibly, debt can be useful for emergencies and other times of need. However, it can spiral out of control quickly and leave borrowers in an inescapable position if they aren’t careful.”
As the cost of living in the U.S. increases, Brown said, Americans could need to take on more debt. This is especially true for millennials, the largest living generation, who are entering the prime of both their earning and spending years being between the ages of 23 and 38.
LendEDU surveyed 1,000 millennials, split evenly between three income brackets, on a series of questions related to the types and amounts of debt they carry.
Results are surprising
The results, Brown said, were “quite startling” — not only because of the sheer amount of debt that members of this generation were carrying — but also because “high levels of debt were reaching everyone, regardless of how much money they made.”
Among the things the study discovered:
- Credit card debt is the most prevalent type of debt among millennials. Among all the different types of debt that were discussed in the survey, credit card debt was the most widespread. Overall, the survey found, 50 percent of millennials had some amount of credit card debt; the average amount carried was $6,206.
Millennials in the middle income bracket, making between $50,000 and $99,999, were the most likely to carry credit card debt, with some 56 percent of this cohort carrying an average of $6,479. Half of the high-income millennials (earning $100,000 or more) had credit card debt; the average amount this group held in credit card debt was $8,040.
- The greatest millennial earners are among the greatest millennial debtors. In every single debt category the survey covered, millennials who made $100,000 or more had the highest average amount of debt. “It was interesting to see that so many millennials in the uppermost income tier reported back with staggering amounts of debt,” Brown wrote.
When it comes to student loan debt, all income brackets had similar proportions of millennials with that debt, but high income millennials by far had the highest amounts.
Millennials making $100,000 or more had an average of $48,451 in student loan debt, while middle income respondents had $36,077, and low income millennials had $33,767 in student loan debt.
No guarantees
Gavan, the recent EMU grad, has a warning for those spending a lot of money on education: It doesn’t always get you where you want to go.
“I’m lucky to have found the positions I currently hold,” she said. “They are exactly what I want to be doing with my life, but what most people don’t understand is that this level of degree doesn’t guarantee you the perfect job and large salary right away.”
While the figures could be attributed to a number of variables, a likely scenario is that millennials in the uppermost income bracket received an advanced degree after receiving a bachelors. Medical, dental, law, or any type of graduate school is going to rack up your student loan debt balance quickly. However, any of those advanced degrees usually lead to a larger salary, which explains why they have the most student debt but simultaneously make the most money.
According to the study, millennials in the high income bracket are the most likely to be homeowners and also the most likely to have greater mortgage debt because they are likely purchasing more expensive homes, Brown wrote. They are also more attractive applicants in the eyes of mortgage lenders as compared to their counterparts due to their higher income.
Courtney Barbee, a 33-year-old millennial and the co-owner of a consulting firm, said she has some $300,000 remaining on her mortgage, but that’s it.
“I pay off the balance on my credit cards each month, and my student loans will be paid off in full next month.”
- Miscellaneous debt piles on quickly for some millennials. Some 43 percent of this generation, according to the study, carry an average of $13,550 in miscellaneous debt, while 36 percent of the wealthiest millennials carried an average debt balance of $16,521. Miscellaneous debt could have come from anything including, but not limited to, personal loans, medical loans, and auto loans.
Kathryn Mancewicz, a 26-year-old millennial who is a personal finance blogger at MoneyandMountains.com, is working on paying off some miscellaneous debt with her husband.
“As of this year, we have paid off all of our student loan debt (some $40,000) and own three cars outright, one of which we just paid off (some $20,000),” Mancewicz told LendEDU. “We were debt free until we decided to purchase an RV so I can work as a traveling speech language pathologist.”
Other debt harder to figure out
So while the trends regarding student loan and mortgage debt can be explained, the other categories are a bit tougher to figure out, according to Brown.
For example, he wrote, upper income millennials had an average of $8,040 in credit card debt, more than the $6,479 owed by middle income respondents and the $3,793 average that represented the low income poll participants.
Further, the study showed high-income members of the millennial generation had an average of $16,521 in miscellaneous debt, while middle income and low income millennials had an average of $15,559 and $8,671, respectively.
Granted, wealthier millennials may be in a better position to pay off debt when compared to their counterparts, but taking on a considerable amount of debt is never a sound strategy. A large salary isn’t a free pass to take on tons of debt, and compounding interest can turn a minor debt problem into a inescapable hole if it is not monitored diligently.
Additionally, too much can go wrong at any given moment that will make that debt a lot harder to tackle, no matter how much money one makes. For example, a medical emergency can quickly double that credit card debt in the blink of an eye. Or, a borrower could unexpectedly get laid off from his or her job, which would mean not having a source of income to pay off existing debt.
The “troubling amount of miscellaneous debt” carried by millennials only further exacerbates this generation’s debt problem, Brown wrote, something “made evident” by this survey.
“The U.S.’s largest living generation is flirting with a dangerously thin line that could turn bad very quickly when the next economic downturn hits,” Brown said.
Zeal Credit Union honors winners of Hard Working Spirit awards
For the third consecutive year, Zeal Credit Union honored nine people who were nominated online as people who are passionate about what they do, work hard and give back to their local community. Winners were honored in March at the credit union’s 65th Annual Membership meeting at the Dearborn Inn.
Comerica aids Big Brothers Big Sisters of Washtenaw County in raising over $50,000
Comerica Bank sponsored the annual Big Brothers Big Sisters of Washtenaw County’s Rise and Shine for Kid’s Sake! Breakfast, which initially generated $50,000 for 2019 (additional $73,000 for next four years) and featured a keynote address by Michigan Men’s Basketball Head Coach John Beilein.
Following in her footsteps: Owner credits mom for encouraging successful barber shops
Jami Buchanan, and her husband Chad, might never have opened their award-winning barber shops, Detroit Barbers Barber Shop + Brand, if it hadn’t been for her mother, Loretta “Chickie” Przekop.
Loretta has worked in and owned hair salons for her entire professional career – and she had a hunch the couple would be able to create something really different in Metro Detroit. And, like most mothers, she was right.
A family business in every sense of the word, Chad and Jami Buchanan run their Detroit Barbers Barber Shop + Brand smoothly buy treating both staff and clientele like family.
“I had always felt Chad wanted to do this,” she said. “And Jami grew up in hair salons. I just felt it was a good fit for them. They work well together.”
A good fit
That personalized barber experience is what attracted the Buchanans to the idea of opening Detroit Barbers Barber Shop + Brand initially. In their travels, the Royal Oak couple visited San Francisco regularly. They noted the long lines that stretched outside of Chad’s favorite barber shops on the West Coast.
In April 2016, the Buchanans took the chance and opened their original, Ferndale location at 23236 Woodward Ave. Due to demand, the business expanded to feature a second level three months later. Przekop was there from the start to help the Buchanans set up the stations, create a template for successfully running the business – and she still commiserates with her daughter about the day-to-day challenges of the industry.
“Jami is even more successful than I am,” said Przekop. She has always been very disciplined.”
‘Enjoy the journey’
By 2017, the Buchanans opened a second barber shop location at 2000 Michigan Avenue in Detroit’s Corktown neighborhood. With a focus on high-quality cuts, hot shaves, classic barbering techniques and superior customer service, Detroit Barbers continues to grow, currently employing more than 20 people – and adding a coffee shop, Lucky Detroit to its Corktown location.
Jami said through it all her mother is always there to provide the necessary positive reinforcement: “She keeps me on track. She reminds me to keep things in a positive light. It’s motivating. She is one of the hardest working ladies I have ever known.”
Przekop said: “Whatever your passion is, be strong and true. Never give up. And remember to enjoy your journey.”
ACG Western MI Women in Finance Panelists discuss how to “Take a Seat at the Board of Directors Table”
The Association for Corporate Growth Western MI Women in Finance hosted a panel discussion on board membership with Sandra Gaddy, Kathy Crosby and Julie Metsker on April 25th in Grand Rapids. The discussion highlighted ways women can be involved in corporate and nonprofit boards of directors.
Mi BANK Names Tom Dorr Chief Operating and Financial Officer
Rob Farr, chairman and CEO of Mi BANK, today announced the appointment of Tom Dorr as chief operating and financial officer. In this role, Dorr will coordinate the implementation of innovative technologies and develop tailored financial tools to empower Mi BANK clients to achieve their goals.
Comerica Bank hits record number of prom dress donations for local nonprofit
Prom remains one of the most memorable events in a high school student’s life, and two organizations are doing their best to ensure teens from all walks of life are able to enjoy this special dance with something equally special to wear.
Recently, Comerica Bank helped as a sponsor to collect more than 2,000 dresses to support Hope Closet during the third annual Prom Dress Drive.
The drive ran from April 8 through 26. New this year were two additional locations participating in the program, reaching 11 metro Detroit communities. Banking centers in Novi and Ann Arbor chipped in to collect dresses, bringing the number of participating Comerica locations in southeast Michigan to thirteen.
Beyond collecting dress donations, Comerica Bank also surprised Hope Closet Founder Whitney Drake with a check for $5,000 to help with operating costs for the nonprofit. Hope Closet provides high school students with the opportunity to attend special events with a dress of their choice regardless of financial constraints or limitations.
“Hope Closet would not be successful without the outstanding support of Comerica Bank,” Whitney Drake, founder and president of Hope Closet, said in a statement. “Through dress donations, funding and employee volunteers, Comerica has been a true partner in making southeast Michigan prom dreams come true.”
Over the past three years, Comerica has donated more than 4,000 dresses to Hope Closet in support of the event.
“Knowing we are creating special memories for students by helping them get access to dresses is rewarding,” said Monica L. Martinez, senior vice president of external affairs for Comerica Bank. “Hope Closet has provided those opportunities to hundreds of young people, and we proudly support the work Whitney Drake and the numerous volunteers do for so many. This would not be possible if not for the generous donations made by both individuals and other sources, including bridal shops. We thank those who have contributed and hope to deliver another great year of making the prom a special and memorable experience.”
Hope Closet is a nonprofit organization in the greater Detroit area working to provide young women with the opportunity to attend high school events with a dress of their choice. Founded in 2003, Hope Closet hosts a prom boutique for one week every year. Hope Closet staffs more than 250 volunteers and receives an average of 300 donations each year. Since 2003, more than 4,000 young women in the Detroit area have been sent to prom with a dress from Hope Closet.
Comerica Bank, a subsidiary of Comerica Incorporated, has served Michigan longer than any other bank with a continuous presence dating back 170 years to its Detroit founding in 1849. It is the largest bank employer in metro Detroit and has more than 4,800 employees (FTE) statewide and one of the largest banking center networks in Michigan.
University of Detroit Mercy establishes the Charlton Center for Responsible Investing
University of Detroit Mercy announces the creation of a new center of excellence in the College of Business Administration (CBA): The Charlton Center for Responsible Investing, funded by alumnus Richard Charlton ’65.
The right way to let someone go
If you could pick just one issue that stresses you the most, what would it be? If you’re like a lot of business owners and managers, it’s firing someone. Letting someone go can be one of the most unpleasant decisions you’ll ever make.
Dismissing someone is never easy. In many cases, it can be prevented by asking yourself a few questions first. Will the employee be a better fit elsewhere in your organization? Are they teachable and just haven’t received enough training? Do they have a personal problem that will eventually resolve itself and all they need is a bit of grace? Is the employee unaware their performance is not meeting expectations?
If you answer “yes” to any of the above, your team member may still become a valuable asset with a new position, some training or mentoring, or a job description that better defines what winning looks like in their role. If the answer is “no,” read on.
How to prepare
Before meeting with the person you’re letting go, have a plan in place to cut off things like their phone, computer access, and email. You’ll also need a plan to cover the terminated team member’s work after they leave. Pick a specific day and time to let the person go. It should be as soon as possible once you’ve made your final decision, and first thing in the morning.
Many human resources professionals recommend avoiding Friday as a firing day, since the person has all weekend to stew about what happened. Letting someone go during the work week means they can immediately begin applying for a new job.
The conversation
It’s never easy to get rid of someone, even a person you don’t particularly like. However, there are ways to make the best of a bad situation for you and the employee.
When it comes to the actual act of firing someone, quicker is better. Don’t drag out the conversation with pleasant chit-chat about yesterday’s game. It sends a signal that nothing is wrong. Meet with the person and at least one other leader in private, and tell the employee immediately that they are being fired and why. If you’re nervous about what you’re going to say, write it down. Stay on course and don’t get caught up responding to arguments when the decision has already been made. It’s not a bad idea to have your fellow leader take notes on the meeting, as well.
Answer any questions the employee may have and cover anything they need to know, like severance pay or benefits. Don’t forget, it’s also your legal obligation to notify fired employees of their possible eligibility for unemployment insurance.
What happens after?
The employee being fired won’t be the only one hurting. Chances are some folks on your team will take it hard, too. In many cases, they’re losing a friend and don’t fully understand what has happened. Tell them as much as you can without embarrassing the former employee or violating confidences. Give the team a little grace, and some time, to process what has happened.
Once a team member is let go, agree on a time they can retrieve personal belongings. Doing this when their teammates are away is often a good idea, and a human resources person or other leader can accompany them.
Do unto others…
Remember, no matter how poorly the team member performed, this will be one of the worst days of their life. Losing a job is traumatic, and they deserve to be treated with dignity, compassion, and generosity.
The easiest way to accomplish this is by following the Golden Rule: “Do to others as you would have them do to you.” Put yourself in their shoes, and then act the way you’d want to be treated if you were being fired.
Letting someone go is a difficult decision. But if it’s done correctly, with a lot of forethought and compassion, you’ll earn the admiration and respect of your team.