Firing the right way important, if tough

In the final push toward the election, office talk naturally turns toward politics, a touchy topic for many. (Robyn Beck/ AFP/ Getty Images)

Q. I work for an investment firm selling institutional pension products to large institutions. One of my senior staff members is not performing anywhere close to where he should be. We have had several conversations about what he needs to do to get his sales on track, but nothing has helped. I really think I need to replace him with someone who can get the job done, but I know it is tricky to fire someone at a senior level. Any tips on how to do this properly so my firm is not in jeopardy of a lawsuit? There is no course on this in business school.

A. Laying someone off due to performance is never easy at any level. Often, the manager feels like a failure for hiring someone who could not do the job. The subordinate feels like a failure because he or she could not live up to the expectations of the manager. Any way you look at it, it is an unenviable position for both. Below are some things to consider as you think about replacing this individual:

Ask yourself how much of performance was affected by the economy. If times were better, would he have been able to sell more pension products? Do you have another senior staff member with a similar territory who is also struggling? Also, consider whether this could be a regional issue. Is the fellow who is not performing well assigned to a part of the country that has been hit particularly hard. It sounds as if this has been a problem for some time, but it is worth reviewing.

Have you documented all of your conversations with the employee stating what feedback you have provided the individual and what suggestions you have made? Have you set goals and deadlines for the employee that he must reach in order for you to consider his performance satisfactory?

Does his performance review support your assessment of poor performance? If you rated his performance as acceptable or better and he has received some type merit increase, there is a disconnect here between what you are saying and what you are doing. Poor performers should not be receiving raises. This sends a mixed message.

Is it important to have someone in the wings to assume this position if you do lay this individual off, or can this territory not be serviced for some period of time and be all right? Consider that you may have to take up the slack if you let this person go before you hire a replacement. Your current customers need attention and that may fall to you. Can you handle it with your current load?

Have you spoken to human resources about your decision? They will work with you closely to ensure the termination is done properly. Make arrangements for someone else to sit in the termination meeting with you: This eliminates a lot of the "he said, she said."

I am sorry that you need to go through this. It is never pleasant. Be sure that you have all your ducks in a row before you pull the trigger. Though there are no guarantees, this will help eliminate any future legal problems.

A. Yes, this is tough, but I would hold my ground and tell everyone that you are not comfortable discussing politics at the office. You are absolutely right not to discuss this, and I would listen to your gut. Invariably there is a boss or colleague who will hold it against you, especially if it is a close election. I would smile and say, "I'll never tell." Then, as best as you can, try to change the subject.

Managers and supervisors who are reading this column, please take note. You can help control this kind of questioning in your areas. Don't ask anyone yourself how he or she will vote, and do not allow anyone else to ask another colleague in your presence. What you can do is to encourage employees to vote. Offer employees some flexibility the day of the election to either vote before they come to work or to be able to leave early in order to vote.

A. Yes, it is a huge decision and one that you do need to do a lot of research about before making a final decision. You didn't tell me whether you were married or have a significant other. That can add a whole new dimension to your decision as well. I love that you are starting at age 60 to think about when you will retire. I hope you started a very long time ago to save for it.

I encourage you to speak to a financial consultant, one paid by the hour, not one who depends on his or her income by services or products that you buy. It might be very expensive, but to me, it is worth every penny if the adviser is good. Ask friends or colleagues for referrals and shop around just as you would for a doctor. You need to have that special connection with the person. Ask for three references as well and call them.

If you work for a midsize to large company, it is very possible that it might have a full-time or part-time financial consultant available for consultations. More and more companies are offering this service to employees who are reaching retirement age. Some offer a gamut of retirement offerings to help you make this decision. Be sure that you ask around to determine if any of these offerings are available.

Why all this attention on your finances? Because for most of us, it absolutely drives our decision to be able to retire or not. Unless we were fortunate enough to inherit or earn vast amounts of money, we are very dependent on what we are able to accumulate over our careers. You can help the consultant by listing the sums of all your savings accounts, pensions, retirement accounts, Social Security, and portfolio amounts. Know what the monthly amounts you will receive for any pensions, annuities, or Social Security benefits. Companies you've worked for, and the Social Security Office, will provide this information, but you must initiate the call.

Keep in mind that the longer you wait to start collecting Social Security benefits, the larger the amount you will receive. So, though you can start collecting Social Security at age 62, you may not want to start until you are at least age 66 or older. A similar decision is necessary about tapping into your 401(k) or 403(b) plans. Though you have passed the age of 59, which is the minimum age that you can tap into your retirement account, you may not want to touch it until age 70½ the maximum age that you can wait to start tapping into your retirement account. This will allow the money in your account to earn as much interest as possible. I am guessing that many individuals will be doing this as a result of the current volatile market. Many lost 20 to 30 percent of their portfolios and will need to leave their money in their accounts as long as possible to maximize their earnings.

Research what health benefits you will have available, as well. Unless your employer will provide it in full, and very few companies offer that today, you need to have a plan for coverage. You usually don't have to pay for Part A coverage of Medicare if you or your spouse paid Medicare taxes while working, but you will want to purchase Part B and some kind of gap insurance to cover any expenses not covered by Medicare.

Finally, think about what you will do in retirement if you are fortunate enough to be able to retire financially. There are all kinds of books, classes, and consultants available to help you think about next steps in what some experts are referring to as the "third age." For many individuals, working gives them their sense of identity, self-worth, and sense of fulfillment. Think about what will replace work for you if you decide not to go into your workplace any longer.

Today, you do not have to decide all or none. Many companies are offering phased retirement where you will pare down your workweek a little at a time. Other companies are offering former employees special projects to come back and work on, seasonal work opportunities, temp services for retirees, and a host of other part-time work opportunities. Talk to the experts, your loved ones and make the right decision for you. Enjoy this next phase of your life. Remember, the best is yet to come.

Joan Cirillo is the executive director of Operation A.B.L.E., a nonprofit that provides employment and training opportunities to mature workers 45 and older.

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