In very simple words, productivity is just a term that is used to measure efficiency. In terms of economics, it means measuring the output that comes from the inputs provided. Technically productivity is defined as output per unit of input, labour, or capital.

A real-time example would be a bag manufacturing factory. Suppose, if 10 labours collectively produce 20 bags per day by employing all the resources, it would not be considered as very productive. However, if the same number of labours collectively manufacture 200 bags per day, productivity would be considered to be very high.

Productivity is an important context not just in the professional scenario. It is relevant in every walk of our life, every sector and hence it is very important to know how productivity can be measured. In economics, operations, factories, as well as service sectors. However, with tangible products as output, the measurement of productivity becomes a lot easier. However, with intangible output, the determination of productivity is a lot more complex.

In factories and manufacturing firms, the units of output can be divided by the labour or tangible inputs and the productivity will be measured. However, in any service, it is harder to find. So in some cases, the aggregate revenue collected by the employee is recorded. It is then divided by their salary to find a deduction of productivity.

Factors Affecting Productivity

There are a number of factors that determine productivity in an organisation. They are described as follows :

Selection of proper manpower largely affects productivity. Selecting the right employees for the right job leads to higher productivity. Also providing proper training to the employees for skill formation increases productivity.

Selecting and acquiring proper types of equipment and machinery in an organisation increases productivity. Availability of optimum, well-functioning and up-to-date machinery in the workplace ensures smooth functioning of labour and hence better productivity.

The floor area or space covered is a detrimental factor in productivity. The total area of different departments, including quality department, administrative block, affect productivity in the workplace. Apart from the floor area, the positioning or the location if these departments also play a major role.

The use of economic, clean and renewable sources of energy has also proved to significantly increase productivity.

Intra-organisational movement is also a significant influence on productivity. The movement of manpower and materials inside the organisation to a large degree affects productivity in the workplace.

Also Read: How to Measure and Improve Employee Performance?

Types Of Productivity

Productivity, broadly speaking is a consolidated term. However, it can actually be rather dynamic in its meaning. It can be differentiated on the basis of a number of factors namely, labour, capital and materials. Below listed are the comprehensive explanation about the three types of productivity.

Labour Productivity

Labour productivity, otherwise called labour efficiency, is characterized as genuine financial yield per work hour. Development in labour productivity is estimated by the change in monetary yield per work hour over a characterized period. Labour productivity and employee productivity are not the same aspects. Employee productivity is characterised as an employee’s yield per hour.

Work profitability is straightforwardly connected to improved ways of life as higher utilization.

This expansion in yield makes it conceivable to expend a greater amount of the merchandise and enterprises at an inexorably sensible cost.

Development in labour profitability is legitimately decipherable from changes in physical capital, new innovation, and human capital. When the increase in labour productivity is evident, in most cases the attributing factors are the above listed three. Physical capital is the instruments, gear, and offices that labourers have access to use to facilitate production and manufacturing. New developments are new techniques to join contributions to create more yield, for example, sequential construction systems or robotization. Human capital speaks to the expansion in training and specialization of the workforce. Measuring labour productivity also provides a huge and clear insight into the trends of these mentioned factors.

Capital Productivity

Capital productivity is the output per unit of estimation of fixed capital assets. In a socialist economy, capital profitability describes the effectiveness with which fixed capital stock is utilized. It is regularly utilized in the financial examination and in the detailing of creation plans and plans for capital consumptions, both for the national economy in general and for independent organisations or companies, professional associations, joint ventures or enterprises.

Information on the GDP and on national income is utilized in computing capital efficiency for the national economy all in all; for ascertaining the profitability of independent organisations information on the net as well as the gross output are put to good use. In segments where the yield is homogeneous (oil, coal, concrete), physical units are at times utilized in the figurings. Capital productivity is determined based on the parity valuation of the fixed creation resources (devaluation costs included), utilizing either the normal incentive throughout the year or the incentive as of the year’s end. Capital profitability is inversely proportional to the ratio of capital and output.

Material Productivity

Material productivity is feined as the amount of output produced in term of per unit input of materials. Materials, in this case, are defined as natural resources. It can be broadly differentiated from total productivity.

The capacity to make the equivalent or more yield utilizing less material assets is known as material productivity. Procedure inconstancy is at the base of materials overconsumption. It begins process wasteful aspects that bring about faulty production, procurement errors, faulty billing practises etc. In other words, it is a blatant wastage of resources.

Each business needs to see if its utilization of materials is changed in accordance with the base adequate levels, or, on a flip side, overconsumption is available. Numerous organizations set the base minimum level dependent on historical data or forecasted data of consumption. However, setting the minimum level should always be based on optimum consumption. R&G can help an organisation by baselining what that minimum level is, along these lines setting the measures. When this count is comprehended and shared by all the essential partners, the time has come to evaluate the deviations between real utilization and guidelines, and to make a framework for persistently lessening or removing the sources of those deviations, subsequently expanding material efficiency.

Productivity and its various types are extremely relevant in any big or small workplace. It helps to keep a proper check on resources and also works as an alarm for necessary changes that have to be made to make the best use of all kinds of availabilities.

An entrepreneur is the owner of the company. He is someone who sets up the foundation of the company. He brings in ideas, innovations and makes decisions in terms of running the company. He is the prime decision-maker. An entrepreneur is responsible for taking risks in the business. Risks include financial, operational, and other unforeseen contingencies related to the business. The entrepreneur is the true-leader of the company. His primary focus is on achievements and profits.

A manager, on the other hand, is an employee of the organization. He evades the element of any form of risk-taking related to the business. Instead, he is responsible for the smooth functioning of his subordinates. A manager may be responsible for a group, a specific department, or a region. He handles and manages all the administrative functions running under him and ensures the organizational goals and targets are met. He does not have to make binding financial decisions regarding the organization. A manager is employed to run an organization or company and does not have to decide upon its fate.

Let us find out what are the key differences between an entrepreneur and a manager based on some important aspects.

Difference between Entrepreneur and Manager

Position in the Company

An entrepreneur is positioned in a company as a visionary. He is the leader and the owner of the business. All the risks associated with the company are borne by him.

A manager, on the other hand, is placed in the organization as a salaried employee. He does not bear any risks.

Focus

An entrepreneur’s focus is primarily long-term. He is focussed on setting up the business,  sustaining it, and expanding it. His focus determines the existence and growth of the business organization.  He has long-term objectives and works towards reaching the same.

A manager is an employee who has short-term objectives in terms of the organization. A manager’s assigned job is to ensure the regular smooth-functioning of the company, and hence, his//her objectives and duties are not far-fetched.

Motive

An entrepreneur is motivated to set up his/her own venture. This means that his motive is to set up a new venture due to his own personal choices.

A manager, on the other hand, is motivated by the power his position holds. His only motive in the organization is to dispense the services that are assigned to him and prove to be a competent employee.

Element of Risk

The possibility of risk-taking is probably one of the most significant aspects of being an entrepreneur. In setting up a completely new venture, an entrepreneur poses himself/herself to the risks and uncertainties of the business. Whether the risks are related to the finances, legal operations, or profits, it is the entrepreneur who bears the full of it.

A manager does not have to take risks in the organization. He has a predefined set of duties and a limited job role that he has to dispense and then receive definite perks in return.

Income

The income of the entrepreneur is rather uncertain. His income from the organization depends upon how well the organization makes the profits. Setting up an organization from scratch has its uncertainties. That also makes the profit-yielding capacity very unpredictable.

The income of a manager of a company is certain and fixed. A manager in an organization is a middle or high order employee. Hence, he/she is a salaried employee on the company’s payroll. As a result, by the end of each month, a manager receives a fixed amount as remuneration as well as promised perks that come with his position.

Innovation

An entrepreneur has to take necessary decisions in terms of the innovations in the organization. The business is the entrepreneur’s brainchild. Hence the decisions regarding product offerings, product development, etc., are made by the entrepreneur. The entrepreneur decides ways by which the evolving demands in the market can be met.

A manager does not have to make any innovative inputs into the organization. A manager, however, has the responsibility of carrying out the decisions taken by the entrepreneur. Hence, it can be rightly said that a manager puts the entrepreneur’s idea and gives them shape in the real world. He/she is responsible for the proper execution of these ideas.

Characteristics

A successful entrepreneur is supposed to have a number of characteristic traits. He/she should have great leadership skills. He/she should be ready to take risks and have an extremely innovative bent of mind. In addition, an entrepreneur should be analytical and patience. He/she should be a good speaker since it is the entrepreneur’s ides to sell his/her business idea to the world and find an establishment.

A manager, however, can have a few inter lapping qualities as that of an entrepreneur. But in essence, to be a good manager in an organization, a person needs to have adequate knowledge in management theories and other aspects. He/she, in most cases, must also have prior practical experience in his field of the job to be hired.

Approach

An entrepreneur’s approach to work is more informal in nature. Since he/she is not directly related to the operations and daily execution of tasks, the necessary formality is averse in the entrepreneur’s case.

A manager, on the other hand, is extremely formal in his professional approach. He/she is responsible for administering a coordination a group of employees around him. This requires the manager to maintain a degree of formality and professionalism in his operations.

Decision-making Process

The decision-making process of an entrepreneur is largely intuitive. He/she employs his innovation, ideas, motivation, and natural drive into making decisions for the organization.

A manager, on the other hand, abides by rules and analyzed data. He/she follows proper protocol and hence takes decisions which are calculative and analytical in nature.

From all the above-stated information, a summary table of differences between an entrepreneur and an employee is drawn. It mentions the various bases of difference along with relevant information.

All the above differences have made it clear that there is a significant difference between manager and entrepreneur. Needless to say, both have considerable importance in any organization. It should, however, be noted that their roles cannot be juxtaposed. Both possess specific skill sets and work on different avenues to keep the growth and daily operation of the organization steady.

Job enrichment is a subset of job design and a by-stander with job enlargement. It is a vertical restructuring of a job role. It is a tool used to motivate the employees by enabling them to learn new skills and acquiring new experiences. It serves as an antidote to employee monotony that occurs due to the repetitive nature of jobs. It attempts to increase employees’ autonomy over its job and also allow him/her the room for feedback and participation. The idea of job enrichment largely emerged from Frederick Hertbergz ‘Two Factor Theory’. It is a process of motivation where newer sets of dimensions are added to pre-existing jobs.

Different Ways of Job Enrichment

The primary essence of job enrichment is to increase the job satisfaction of the employees. This is done by vertical enlargement of the job profile known as job enrichment. This means increasing the control of the employee over his job. Upon having heightened control, the employee feels more responsible, more accountable and freer to take risks on his activities. All of these factors attribute to better job satisfaction which in turn lead to better productivity. Here are some of the ways by which job enrichment can be carried out:

Job Rotation

One of the most effective ways of job enrichment is by rotating the employees in various jobs. This will allow the employees to learn new skill-sets and acquire new experiences. Job rotation can be an extremely useful tool in providing motivation to the employees.

Complex Tasks

The employees can be assigned with more complex set of tasks. This will give them a sense of entitlement towards their job since they will be handling the job from the start to the end. They will find more meaning in their professional duty and that would give them the motivation that is required.

Formation of Autonomous Teams

Job enrichment can be both on an individual and group level. Formation of such teams would help the enrichment on a group level. In such groups, the employees should be given the freedom to decide upon the operations, evaluations, etc. In some cases, they may also e give the freedom to choose their own team members. This will provide heightened motivation for their work.

Increasing Participation

Increasing the participation of the employees in the higher-level management processes can work as an effective motivator. A company with a very strict hierarchy is likely to make the employees that their voices are unheard. Hence letting the employees have a say in strategic management can, in turn, lead to job enrichment.

Transparent feedback

In most cases, we see that the quality team of an organisation tracks employee performance and points out the mistakes. However, if the feedback process is more employee-directed meaning that the employees have more control over tracking their own performance, then it would lead to effective job enrichment.

Steps in Job Enrichment

The followings are a rough sketch of the steps might be implemented for job enrichment:

Survey

The first and foremost step is conducting an extensive survey in the organisation. It should be first understood the areas of improvement. The areas where the employees are dissatisfied should be found out. Implementation of enrichment without a proper survey would only lead to developmental work in areas that do not require it leading to ineffective job enrichment.

Deciding on the Approach

There can be a number of approaches to implement job enrichment. Hence, it is important to decide on the right approach. Choosing a drastic approach would not only be cost-ineffective but also poses the risk of operational failure. Hence, a complete paradigm shift in the workplace scenario is not a safe option. Instead an optimum task-force should be appointed to implement job enrichment on grounds of operational profitability as well as job satisfaction of the employees.

Curating the Program

After analysing the different approaches, a final program for implementation of job enrichment should be created.

Communicating the Program

After designation of the program, there should be clear communication. All the levels of management, as well as the employees, should be well communicated about the plan of action. In addition, the employees should be given enough participation and their feedback should also be taken into account.

Advantages

The followings listed are the advantages of job enrichment:

• Job enrichment enables the employee ton to learn new skill-sets and enrich himself.
• With learning new skills, he is prone to new jobs and hence can potentially acquire new experiences.
• It is one of the best motivational drives for the employees of an organisation.
• A workplace with motivated and skill-enriched employees can be regarded as a healthy working environment.
• Since due to job enrichment, the employees are motivated to be participative, it improves their decision-making process of the employees.
• By increasing the job role and participation of other middle and lower-level employees, job enrichment reduces centralisation of power.
• Job enrichment inculcates a sense of accomplishment in both the employer and the employee.

Disadvantages

Even though job enrichment can be generally attributed to positive outcomes in an organisation, there are a few disadvantages that should be noted.

• Employees are given way too much control under this approach. However, the credibility of the employees is not always tested. Whether the employee can make full use of the control in his hands or not is debatable.
• A lot of employees work well and prove to be productive when they are under direction. Given the autonomy of actions, it may affect their productivity.
• A degree of ego clashes and complexes may also emerge in the organisation since the superiors may feel that they are losing their hierarchical position.
• Job enrichment comes with added responsibility upon the employees. This may, in some organisations be a tool of their exploitation due to overworking.

Job enrichment is a two-sided sword. However, it obviously does more good than harm. If it is used by unscrupulous management, it may lead to exploitation of the employees. However, if it is systematically implemented, it would lead to a workforce of highly motivated and driven individuals who are satisfied with the work they do.

It is for the organisation to decide the right approach of job enrichment in alignment with the other needs of the organisation. A well-enriched set of jobs will only lead to higher levels of productivity.

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Employee Skills Matrix

A Skills Matrix is rightly known as a Competency Matrix as well. It is a visual instrument that allows an HR professional to observe, analyse and map out the various skills and competencies of the employee in an organisation. This matrix is essentially used to find out the required and available skill-set of the employees. For curating a team for any specific project, a skills matrix comes in very handy. For an HR professional with a data-driven mindset, this proves to be an important tool.

In a properly framed skill matrix, namely, three aspects are shown. These are the required set of skills in the employees, the existing set of skills in the employee, and the skill set that is missing in the employees. Ideally, it is used for a small or medium-sized group or team. However, it can be potentially expanded.

Whenever utilized accurately, the Skills Matrix offers a solid review of the information and aptitudes accessible inside a group. It can let you know whether you have the right stuff important to complete explicit errands. In the event that the group is inadequate in certain important aptitudes, we call this an abilities hole. This makes it a basic instrument for any human asset supervisor putting together their choices with respect to the information.

In the left side of the matrix, the required skills in the employees are listed. In the top row, the names of the employees are mentioned. In the intersection of these rows and columns, the proficiencies and skills of the employee are mentioned by level.

Skills Matrix Levels

As mentioned, proficiency and interest are two important parameters of the Skill matrix. “Proficiency” means an employee’s existing credibility in a field. “Interest” shows his/her drive to learn more and develop. High proficiency is no wonder a positive parameter but it is only useful when it comes with a high level of interest. Following described are a few levels in the Skill Matrix:

Proficiency level 0

An employee with a zero level has no skill in an area and cannot be put to activity. The focus is on the introduction of basic concepts to the employees.

Proficiency level 1

An employee with a proficiency level of 1 only possesses the basic concepts of a skill. The focus for this employee would be on the development of those basic skills.

Proficiency level 2

At this level, the employee, not only has basic concepts of skill but also has some practical knowledge about the same in the professional field. At this point, the focus is on acquiring new experiences and extensive training.

Proficiency level 3

Level 3 employees are experts of middle-order. They have the relevant knowledge, skills and experience. Hence they can carry out the activities on their own with average competence. Occasionally, intervention from professionals might be needed. There is however room for development and new experiences.

Proficiency level 4

Employees marked at this level are experts in their field. They do not need help from other professionals. In fact, they are the ones who help other employees with queries and developmental needs. They generally focus on strategic management and problem-solving in their respective domains.

Proficiency level 5

Employees at this level are highly skilled. They work in strategic management. They are experts in problem-solving, coaching and helping other employees.

Interest

Interest has a binary level. It is either 0 or 1. 0 signifies that an employee has no drive or motivation for development and learning. 1 signifies that an employee is highly driven to develop his skills and increase his core competencies.

Skills Matrix Benefits

A skill or competency matrix has varied uses. Also, it does not just benefit the team that it is applied to. It also benefits the organisation, the individual employee, the final stakeholders/clients etc. Below described are the benefits of a skill matrix:

Team

The matrix is most beneficial to the team it is being applied to. With the help of the matrix, all the members of the team are on the same page. It effectively showcases the missing skills which can be attended to by hiring new employees or extensive training of the current spots. It shows the team its strengths and weaknesses and how they can impact the productivity of the team.

Organisation

On a broader perspective, the Skills Matrix analysis benefits the organisation. It gets a clear picture of the Human resource it possesses. It also helps the organisation to allocate its resources for the required training and development process.

Individuals

The skills matrix provides a two-fold benefit to the employees in the team. TO begin with, it makes the employee aware of his/her strengths and weaknesses. The awareness makes it a starting point for a learning process. Also, the requirements shown in the matrix makes the individual employee clear as to what the team/organisation expects or demands of him as output.

Stakeholders/Clients

The increased productivity and efficiency of the team means better output in terms of service. In that sense, it ultimately benefits the stakeholders of the organisation, be it internal or external.

Steps to Create Skills Matrix

The framework of a competency matrix is specific and requires some systematic steps to its creation. The steps are described as following:

Assessment of required skill-set

A Skills Matrix is generally created by an HR professional to assess and increase the productivity of a team. It is also done to prevent intra-team mishaps like conflicts. Hence, the first step would be to list down or assess the required skills necessary for a particular project. These skills would be the foundation upon which current employees would be assessed, new employees would be hired and training and developmental programs would be undertaken.

Assessment of the employees’ current skill-set

The second step in the creation of the matrix is very important and comprehensive. It includes the assessment of the current skill-set of the employees. This can be done by taking direct information from the employee or by asking his colleagues, supervisors, examining reports, etc. Since only asking the employee might not provide an accurate result due to bias, the 180 degree or 360-degree feedback method is used. Upon assessing the skill and experience of the employees, they can be divided into the levels of proficiency as decided by the organisation.

Assessing the interest of the current employees

Based on the skills of the employees, they will be assigned tasks. High proficiency would not ensure high output. The employee must also be interested to implement and develop his skills in his activity in the organisation. Hence assessment of the employees’ interest is very important upon which they will be divided into a 2-point interest scale in the matrix.

Incorporation of the insights

Once all the data has been gathered, they should be incorporated into the template of the matrix and analysis has to be made of the same.

Responding to the result

The last step is the evaluation of the matrix. Here the HR should analyse the data related to each employee. The employees should also be given a chance to make suggestive inputs. If there is any error, they should be rectified immediately. The fact that each employee is assigned to the right job should also be evaluated.

A skill or competency matrix has emerged to be an important tool in a data-driven workplace scenario. In a situation where analytics are taking over rough data, a skills matrix has proved to be a boon to the HR scenario. It has not only benefitted the employer but also the employees as well as the final clients. The multiple benefiting nature and technical approach of this analysis is what had made it so relevant and important in recent times.

Terminating an employee is never an easy job for any employer or HR representative. In the first place, selection, recruitment, training and onboarding is an expensive process as it is. Also, if the termination is not backed up by relevant and adequate reasons, or is not executed properly, it may lead to unpleasant situations. The employee may seek legal discourse for unfair termination or may spread negative word of mouth that may in turn severe the good-will of the company.

Termination of an employee can be attributed to a number of factors. It, however, especially gets gruelling for the employer when the termination is due to poor performance. When various attempts by the employer fail to work and the employee is not very keen to reform his/her performance, the best alternative is to terminate him/her from services.

However difficult it might be, it is legally possible, but only when proper precautions are taken. On the event of the contrary, the employer is most likely to be standing at the losing end of a legal case or stuck with an incompetent employee. On the event that the employer fails to provide proper pieces of evidence, the employee shall receive due compensations by labour laws for unfair dismissal.

But before that, it is important to list the pointers that, in fact, classify as “poor performance”:

• The unwillingness of the employee to be productive.
• Inability to complete tasks.
• Inability to meet deadlines.
• Unwillingness/Inability to correct errors.
• Inability to work in collaboration.
• Inability to learn new skills.
• Inability to come up with a good judgement.

If the above scenarios occur, the employers can fire the employee, but only after giving him/her enough scope for change or reform.

Steps to Effectively Terminate an Employee

1. PROPER JOB DESCRIPTION

At the beginning of the job, the employee shall be provided with a clear description of his/her job and his/her role, the duties to be performed, and the expectations of the organisation.

2. TRAINING

Every employee should be provided systematic training by the organisation. This is to ensure that the employees learn skills as necessary to meet the demands of the job and also work to the best of their ability.

3. PERFORMANCE EVALUATION

Performance evaluation is an important tool for tracking employee productivity. It is two-way communication between the HR representative and the employee. The employer may point out the domains of improvement for the employee, his/her current inefficiencies or immediate goals to be achieved.

4. IDENTIFYING THE PROBLEM

Unsatisfactory performance or inefficiencies can be distinguished during such evaluation or through explicit conduct. At a point, when these inefficiencies are identified, the employer should transparently communicate that to the employee. He/She may also give him a course of action for improvement or tell him/her the need to improve. However, all of these exchanges, and assessments should be properly documented.

5. PERFORMANCE IMPROVEMENT PLAN OR PIP

After the formal assessment, the employer must provide opportunity to the employee for improvement by putting him under a PIP. However, the PIP needs to communicate as such information to the employee as follows:

• Reasons as to why his/her performance seems unsatisfactory
• The expectations of the organisation
• Tangible objectives
• Time-span of PIP evaluation
• Process of the training
• Consequent courses of action if the employee fails to improve

6. EVALUATION POST PIP

The employer needs to evaluate post PIP whether there is any significant change in the performance of the employee. If the employer/HR notices any change but feels it does not meet the present standards, the employer may put him/her under another evaluation period. However, it lies at the discretion of the HR representative himself. In case he/she feels that there is no significant change and no scope for improvement, he/she may resort to the termination of the employee. Any communication taken place shall be unfailingly documented by the employer.

7. KEEPING ALL THE DOCUMENTATION READY

When the decision for termination has been made, the employer must have all the documents ready at his/her fingertips before executing the termination. This is to have a legal upper hand incase the employee claims to file a complaint. Meticulous documentation of reports, evaluations, PIP and other communications and complaints will make the termination process easier for the employer.

8. SCHEDULING A TERMINATION MEETING

It is best to schedule a termination meeting with the employee at the end of the working day when the other co-workers are leaving. In the meeting, the employer should avoid small talk and get to the point directly. He/she should clearly state the reason for termination respectfully and with dignity. All the complaints, evaluations, chances provided should be briefly and clearly stated. It does sound like a tempting idea to carry out a termination over a call, or e-mail but a face-to-face meeting happens to be the most professional way to do it. Upon doing that, let the employee know how his/her previous contributions were credible. The employer should also communicate all the essential details, like leaves, compensatory pay, office equipment that have to be returned, so on and so forth

9. LISTEN

After the news of termination has been broken to the employee, it is most likely that he/she would have things to say. The employer should listen to them, answer any questions that they have. However, if the employee gets a place where he pleads for another chance, the employer must clearly communicate that the decision taken is final and binding and there is no further room for negotiations. Whatever conversation might take place, the employer should exercise a great deal of restraint and professionalism in his behaviour. Also, ideally, a termination meeting should not extend beyond 30 minutes.

10. BE CAREFUL

While terminating an employee an employer must be extremely careful in his discourse. He/she shall not say/do anything that might be used against him/her. For example, while termination the employer should only talk about documented and objective reasons for termination. He/she should not pick at the personal traits of the employee, his/her personal opinion of the employee or comparison with other employees. Such conversations may lead to exchanges that are immaterial and unnecessary. The employee may also use this to put the HR representative under a wrongful discrimination lawsuit.

11. END WELL

The employer should lastly hand a termination letter to the employee. He must also let him know when you expect it to be submitted. He must exercise enough grace and poise and end the meeting with a handshake and escort the employee out of this office.

Sample Termination Letter Template

*Your name*

*Street address*

*Zip code*

*Date*

*Recipient name*

*Title*

*Company name*

*Street address*

*Zip-code*

Dear *recipient name*

We regret to inform you that your employment with *company name* is being terminated, effective *date*. The termination is taking place on account of poor performance as outlined below :

1. *Performance issue*
2. *Performance issue*
3. *Performance issue*

You were issued written warnings of these performance issues on *date*, *date* , *date*. Copies of these warnings signed by you are in your personnel file. Your signature on each warning indicates that you had discussed it with your manager, including steps that might be taken to improve your performance. As stated in your final warning, you were required to improve your performance by *date*. Failure to do so has resulted in your termination.

To appeal this termination, you must return written notification of your intention to appeal to *Name* in HR no later than *time* on *date*.

Sincerely,

*Your name*

*Title*

Cc: *Manager name*

It is important to be noted that even after proper documentation and systematic chances given to the employee, the employer still is susceptible to a risk. This can occur when the offer letter provided to the employee does not state all the clear situations under which an employee is likely to be terminated.

Formulating a proper offer letter is not only professional but also important in future contingencies as such. Hence, for the protection of the employer’s interests, offer- letter should state the clear terms and conditions of termination. This includes clauses for termination under probation, clauses for termination post probation etc. On the acceptance of these shall an employee be able to join the company.

Terminating an employee in most cases seems like one of the most gruelling tasks an employer has to do. However, difficult it might seem, an incompetent and stagnant employee should be terminated nevertheless. However, with proper precautions taken, and systematic steps followed, as mentioned, an employer can easily weed out inefficient employees and also not fall prey to lawsuits that only add to the trouble.

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