Radio Shack - An Example In How Not To Terminate

In some instances, the decision to dismiss may not be as critically important as how that decision is carried out. A catylist for a wrongful discharge claim often can be an inappropriately handled notice of termination.

It seems that Radio Shack apparently disregarded that fact when they set a new standard in the low category for terminating employees. By now, perhaps every HR professional in the country (except possibly Radio Shack's HR department) knows about the "firing by email" that the big electonics retailer did to 400 of their HQ employees.

The general consensus among HR professors and professionals is that the Shack did not score many points for "best practices" with its recent layoff procedure. There certainly are a lot of downsides they failed to consider. Even if the employee can't sue for possible wrongful discharge, the Shack failed to realize some of the other pitfalls.

Word of mouth. Word of mouth if one of the strongest message carriers a company can have (much more credible than advertising). If 400 Shack workers (who are not happy about being terminated in the first place and really ticked with the email) tell 20 people (most likely a lot more), now you have 1000's bad-talking the employer. And with emails and bloggers sending comments throughout the world, that number grows exponentially. Customers like to deal with reputable retailers - bad word of mouth can translate into fewer potential customers coming through the front door.

Or as marketing trouble shooter, Mary Schmidt, comments in her blog, "CEO's of the Big Clueless Companies seem to spend all their time on Wall Street when their customers are all over on Main Street looking to buy quality products from happy and trustworthy employees."

Unlike some companies who are somewhat hidden from the product brand names they carry, Radio Shack is right out there. Might as well put a sign over the window that says,"Radio Shack - The Electronics Termination Company."

Company loyalty. The Shack just threw that out the window. If the impression is that an employee who works for years for their employer, building and promoting goodwill, is only worth a two sentence email, then just how loyal will the rest of the staff be?

Coupled with that - morale. It must be really exciting to come to work at Radio Shack headquarters and turn on your computer first thing in the morning. You never know what the next email will say. Read Stephen Meyer's article on Terminations and Morale. As Stephen astutely points out, "Smart managers know that when they fire someone, not just the fired person is affected. The entire staff is. That's why, when you decide to fire a person, you need to concoct an entire communication strategy."

Chances are there may be a few Radio Shack employees polishing up their resumes.

Image. People like to work for companies they can be proud of. We don't think the Shack will make the "best 100 companies to work for" list this year.

Jim Walter, CEO of Employee Assistance Group, in a recent article highlighted some of the best practices to use when terminating an employee. Its a pretty good list. One advice Jim offers is to have a manager and HR person present at the termination meeting. (By the way, what were all the HR people at Radio Shack doing when this email was being created and sent?) Jim is not a advocate of using email.

I'd like to send the following email to Radio Shack.

Dear Radio Shack. Bring on the Damage-Control Team!

Comments

[chris]

i have worked for radio shack for almost a year. never late ,called in maybe four time the whole time working there. my aunt is on her death bed at hospice ready to go any min. i was fired for callin in to work.

[Goldstien]

I used to work for the Shark[ shack] for over three yers and atlast I filed discrimination charges and which was clear to anyone , EEOC and Fair Employment & housing found many discrimination acts. To make it short their lawyer lied and the case is still hanging, How do I restart the case/

[Alco]

I got canned Tuesday before Thanksgiving!!!
America protest trash like RadioShack!!!