Fired is the New Retired - The idiocy of axing older employees.

By Ellis Cose NEWSWEEK
Published Oct 29, 2009
From the magazine issue dated Nov 9, 2009

This may be the worst time in the last 60 years to be old and looking for work. Some 6.8 percent of workers over 55 are unemployed (not as bad as for younger workers, but still a historic high). You have to go back to 1949 to find employment stats nearly (but not quite) as bleak as they are now. The bad news does not stop there. On average, it takes employees over 55 roughly 33 weeks to find new jobs, nearly seven weeks longer than for younger workers, and nearly 13 weeks longer than it took just two years ago. Bad as things are, the Supreme Court has made them even tougher—at least for those who believe they are victims of age discrimination and are inclined to try to prove it.

The court's 5-4 ruling last June came in response to a suit filed by a demoted employee, Jack Gross, under the Age Discrimination in Employment Act (ADEA) of 1967. It was not sufficient, concluded the majority, to show that age was among the reasons for an employee's bad treatment; age had to be the reason. In his dissent, Justice John Paul Stevens called the decision "unnecessary lawmaking." The majority, he said, misread Congress's intentions. Last month, in introducing legislation to nullify that decision, Senate Judiciary Committee chair Patrick Leahy also accused the court of thwarting congressional intent.

At a Judiciary Committee hearing focused on recent Supreme Court workplace decisions, Jack Gross told his story. (The committee also heard from a former Halliburton employee who says she was raped by coworkers in Iraq but was denied the right to sue because she had unwittingly signed a binding arbitration agreement.) Born in 1948 in a small Iowa town, Gross grew up imbued with the value of hard work. As a schoolboy, he labored at numerous jobs despite the constant pain of ulcerative colitis. As an adult, he found work with Farm Bureau Life, an insurance company, and eventually became a vice president. But in his 50s, he was abruptly replaced by a younger woman. The company, he surmised, was systematically trying to weed out older workers. A jury found in his favor but an appeals court vacated the verdict. The case eventually made its way to the Supremes, whose decision "mortified" him.

The AARP was similarly disturbed—especially in light of statistics showing a 29 percent jump in age-discrimination complaints from 2007 to 2008. Dan Kohrman, senior attorney with AARP, concedes that the numbers don't necessarily prove a commensurate rise in age discrimination, but he insists they show something bad is going on. During hard times, he says, many employers resort to "crude practices" that drive older workers away. They may force supervisors to rank employees on subjective criteria—such as mental "flexibility"—that are essentially a license to discriminate. Or they generate paperwork alleging drops in performance that have no clear explanation.

Linda Barrington, an economist with the Conference Board, agrees that older workers are often stereotyped. Obesity," she observed, "is more of a health-care cost than age for those between 30 and 50." And older workers show every bit as much stamina as younger workers when called upon to put in long hours. Yet in all too many cases, employers see age as a much larger liability than it is.

Earlier this year, after another Supreme Court ruling made it harder for women to fight discrimination in pay, Congress passed the Lilly Ledbetter Fair Pay Act to restore rights many legislators assumed they had already protected. Congress ought to do the same for older workers, who should be given every legal weapon they need to fight discrimination. But even if that happens, age discrimination will not simply go away. Very few workers have the resources to bring a case to court. As Joanna Lahey, an economist with the Rand Corporation, has noted, "the majority of people who sue under the ADEA are white, male middle managers or professionals." And even if more people did have the financial resources to sue, many who are discriminated against don't have the smoking gun that will prove their case. They may just know the job or promotion they wanted went to someone else.

The larger problem, as Barrington points out, is how we tend to view people, the stereotypes we impose on workers of a certain age. It would be great if correcting that were as simple as changing a law. Instead, we face the more daunting task of changing ourselves.

Find this article at http://www.newsweek.com/id/220144 © 2009

Barack Obama Becomes the 44th U.S. President

The economy ranked as the top concern among voters who cast their ballot for Barack Obama, elected President Tuesday night.

The issue...Jobs.

A total of $100,032,604 was spent to broadcast 52 ads related to the presidential campaign on the issue of jobs from April 3 to Oct. 27, 2008, according to statistics compiled by Campaign Media Analysis Group, which tracks political advertising expenditures.

Layoffs and hiring freezes announced by Companies in the broader economy can ripple throughout the Staffing Industry by causing management to cut back on their costs by "making do" with less staff, and this can make it harder for these companies to maintain market share, fueling the ongoing decline in revenues and profits.

Given the weak labor market, only the most skilled, talented and motivated employees will uncover, discover and leverage opportunities to contribute. The economy may be weak, but it is not without prospects.

Staffing Industry employers might be well served by taking a hard look at the capabilities of their employees and how they are deployed. To preserve a place in the market and prosper for longer term benefit, only the best and brightest should be "on the team," so to speak, in revenue generating assignments. Tolerating mediocrity is risky. Finding talent is difficult with the unemployment rate increasing.

We can help make an investment in finding and hiring talent produce sustaining, material results.

Direct Search Alliance was established by Staffing Industry leaders to provide an alliance between America's best employers and executive, management and professional people already successful in their role and area of specialization.

Our organizational mission is to represent, serve and inspire talented individuals to nurture and propel business performance.

How to Fire the Employee Who's Holding You Back

Compliments of Jennifer Alsever

Donald Trump makes it look easy, but the words "you're fired" are always difficult to say. Letting an employee go is painful, and for many managers the process is fraught with sleepless nights and stomach-churning anxiety. But hanging onto the wrong people can ultimately make matters worse for you, your other employees, and your business. Here's how to break the news firmly but gently, so you can put the rest of your team back on track.

Treat Dismissal As an Option of Last Resort
Goal: Make sure the employee has been given ample opportunities to succeed.
Before you lower the axe, ask yourself whether you should really let this person go and whether you've given them sufficient opportunity to redeem themselves. Will more training or guidance help? Is the problem the worker, or the work environment? Along the way, communicate expectations clearly—in person and in writing—and provide sufficient feedback so the worker knows where he stands. Planning and documentation is key to letting someone go gracefully, and it's also the best way to avoid expensive litigation. It's tough to objectively document a worker's surly attitude, but you can address the issue in periodic employee review sessions. Keep copies of those reviews and document performance regularly, indicating how the worker was informed of your expectations, how he fell short, and whether or not he knew that continued failure would result in termination. Performance reviews are important, but no set number is needed. Just be sure to treat every worker equally and even-handedly: Don't scold the underperformer for lateness if you let another worker get away with the same transgression.

Danger! Danger! Danger!
Flattery Will Get You Nowhere.
"A lot of employers fall into the trap of trying to flatter workers [in reviews] with the hopes that problems will go away," says Lew Clark Jr., an attorney at Squire Sanders & Dempsey in Columbus, Ohio. "Workers think the boss is happy, and when they're fired that can create legal problems because they feel that the firing was discriminatory or unlawful." For more detail about the legal issues surrounding employee termination, see "Firing and the Law."

Endure Pain Now to Enjoy Benefits Later
Goal: Get over your guilt. Accept that you're doing the right thing and start preparing for the change.
Once you're sure an employee isn't working out, act on that conclusion. "The longer it takes to fire someone, the more you're in danger of losing respect from the rest of the organization," says Monique A. Dearth, a former HR manager at General Electric who's now president of Incite Strategies, a consulting firm in Atlanta, Georgia. "Firing someone is never something we want to do, but it's inevitable, and if you're a leader it's something you're going to have to get used to."

Nobody likes conflict, but while you dither, your company may lose customers, money, or productivity. Tolerating sub-par performance can also impact the morale of other employees. "Managing an underperformer drains resources," says HR consultant Donna Flagg, who spent 15 years as a human resources professional for Chanel, Barneys New York, Donna Karan, and Goldman Sachs. "Other employees will want to leave if they feel they're not being recognized while someone else is doing less and getting a break." It's better to spend your time filling an open position, she adds, than managing someone who shouldn't be in the job.

Don't forget continuity planning, and anticipate what you'll need to do to replace the employee or handle her work flow once she's gone. Will you need approval from anyone above you before firing the worker? Before asking other employees to fill in? Is there anyone you'll want to promote into the vacated position?

Hot Tip
Put the Ball in Their Court.
In many cases, when the skills, work ethic, or personality of a worker don't mesh with the rest of an organization, you may actually be doing them a favor by letting them go. In fact, they may know this as well. So before you fire someone, consider asking if they're really happy in their job, rating it on a scale of 1 to 10. Sometimes, employees will realize on their own that it's in their best interest to move on.

Set a Time, Date, and Place
Goal: Map out a strategy to make the event as painless as possible.
There's never a good time to tell people they're fired. But if you wait until 4 p.m. on Friday, the terminated employee might question why he wasted his whole week. "Monday gives them an opportunity to regroup and start networking," says Pamela Holland, COO of Brody Professional Development. Likewise, it's best to get it over early in the day, so you won't be distracted by the looming conversation. Cutting ties during lunch hour can be a good idea, because the office will be relatively empty and a fired worker can clean out his desk in private. Plan out the details carefully, considering whether company policy requires that the worker be escorted out of the office and whether he has access to critical company systems. (If so, you may want to back up files before you have the conversation.) Arrange to have the employee's final paycheck ready on the day of your termination meeting.

Give some thought to where you will hold the meeting. Don't go out to lunch or pull a worker into your office, because it can be difficult to end the conversation. Instead, pick a neutral place, such as a conference room, where you can easily walk out when you're done. Afterwards, bring in a human resources representative to handle the final details: collecting keycards, laptops, filling out paperwork, and answering questions about health insurance and accrued vacation. "They can complain if they want, but they'll be sitting there with someone who can't do anything about it," says James Wright, who handled numerous layoffs at tech firms during the dot-com bust.

Danger! Danger! Danger!
National "Daddy Got Canned" Day.
In addition to consulting your own calendar, check to see whether the planned termination will fall on a day that may have significance for others. One company didn't think through its firing plan and let a systems engineering manager go on Take Our Daughters to Work Day. Security escorted both the man and his 8-year-old daughter out the door.

Keep It Quick and Clear
Goal: Be direct and don't let ambiguity creep into the conversation.
Though you'll spend a lot of time planning and preparing, firing someone typically only takes a few minutes. Be clear and—harsh though it sounds—use the words "terminate," "let you go," or "fire."

"When people hear bad news, they go into selective listening mode," says Bob Kustka, who handled terminations at Gillette for 25 years. Kustka recalls one manager who told a worker he needed to "move him out," intending to terminate him. The worker walked away thinking he was being transferred to a different job.

You can show sympathy by starting out with "this isn't going to be easy to hear," but keep it simple and stick to the facts. Ideally you will have already had several conversations about the worker's performance, so the news shouldn't come as a surprise. Be clear—"You're being fired because you stole," or "You're being fired because you're not hitting your sales numbers"—but avoid a laundry list of the worker's personal faults. If necessary, write a script and have a checklist of items you need to cover. For example, be sure to tell them when their departure is effective.

The way you deliver the news can determine how the person reacts—and whether they'll pursue legal action. "When they feel disrespected, employees will believe the law has been violated," says Clark, the lawyer. "How the decision is communicated—doing it respectfully and preserving the employee's dignity—can make a difference." If the worker becomes angry or hostile, end the conversation and insist she promptly leave the premises. Avoid an argument by simply stating "I will not argue with you."

Close the conversation by giving the worker credit for the effort she's put forward. Tell her you're sorry this has happened, but that it's what you must do. Depending on the situation, you may also want to show support by offering to be a reference. Stand up, wish the person well, and shake hands. Then introduce the representative from the human resources department and leave the room.

What Not to Do
Common Mistakes When Firing.
Don't talk about yourself: If you say, "I know how you feel," or "I don't want to do this," you seem more worried about yourself than about them. Do not offer advice.

Don't sugarcoat: Don't offer false praise and tell them all the reasons why you think they're great. It clouds the issue and can be confusing. Pick one genuinely positive thing to say about the person, but do not go overboard.

Don't defend yourself: Even if you're told you're a lousy manager, resist the temptation to tell your side of the story. Stay calm and redirect the conversation back to the worker and your decision.

Let the Rest of Your Team Know
Goal: Lay the groundwork for a smooth transition among the workers who remain.
Tell other workers about the termination right away. Flagg says, "Any window [of time] is dangerous. Someone will hear that it happened, and the news will run like wildfire." Just as in your conversation with the fired employee, don't get into big discussions with fellow workers. Instead, explain that "John left the company on Monday" or "John no longer works here," recognizing his contribution to the company but avoiding details of why he was fired.

If you have a team, bring them together that week to talk about their concerns, discuss how to handle the departed employee's workflow, and map out your plan to fill the vacancy. If the firing was an isolated incident, you may want to assure workers that their jobs are not in danger. But if employee performance varies considerably, save your comments for private conversations tailored to each person.

Nitty Gritty
The Kindest Cut.
One way to bring compassion to the firing process is to let the person determine some aspect of how they will leave. Some managers offer the fired worker the opportunity to resign. This is usually done with high-level executives, but it may also apply in cases where there's a friendly relationship between the employee and employer.

In other situations, smaller gestures are appropriate. You might give the employee a choice about who will walk him out of the building: you or the HR rep. He should also be able to choose whether he wants to gather his personal belongings now or after hours, and whether he's ready to have the benefits conversation or wants to postpone it to another time, when he's feeling less rattled