Letting go of a former performer

Our long-time office manager isn't keeping up with our growing practice. She did an excellent job for almost 10 years, but during the past few years, she's lost the practice money because she can't manage the increased patient and billing load. How should my partners and I approach her? How much severance should we offer her?

Roger Cummings, CVPM

"It's difficult to discharge any employee and even more difficult when it's a long-term employee," says Veterinary Economics Editorial Advisory Board member Roger Cummings, CVPM. "In this situation, your best help is evidence that you've given regular performance reviews, acknowledged failures in performance, and offered your office manager opportunities to improve her performance."

Cummings, a consultant with Brakke Consulting in Dallas, says that evaluations offer you a clear reason for dismissal if the employee fails to improve. "If you've laid this groundwork, your employee likely will enter the meeting knowing that she'll be discharged," he says.

If that's not the case, be careful. If you don't have any documentation to show her poor performance or any evidence that you've worked with her to try to improve her performance, you're setting yourself up for a lawsuit. Document and discuss the problem, then fire if change doesn't occur.

As for severance, Cummings says that a severance package is appropriate when an employee is discharged for reasons beyond his or her control, such as a general staff reduction. "But offering a severance package to someone you fired because of poor performance gains you nothing," says Cummings. "She isn't going to be happy about being fired, even with a severance package. And offering a severance package sends the message to all team members that poor performance will get them fired eventually—but you'll give them one last bonus."