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Home IRS & Taxes

The 3 Reasons Employees Are Let Go and How to Prevent It

by TheAdviserMagazine
6 months ago
in IRS & Taxes
Reading Time: 4 mins read
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The 3 Reasons Employees Are Let Go and How to Prevent It
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Have you heard of the “Dark Triad”? How about the “Dark Tetrad”? These psychological concepts describe toxic personality types that sometimes appear in workplaces— Machiavellianism, Narcissism, and Psychopathy. Add Sadism to the mix, and you get the “Dark Tetrad.” 

Does your boss or coworker exhibit any of these tendencies? 

Machiavellianism: Someone who likes to pull the levers of power in the background, subverting plans to fit their own. The Machiavellian is the coworker who quietly stabs you in the back and rarely gets caught.  
Narcissism: A self-centered individual focused solely on personal gain.  
Psychopathy:  Not a Dexter-like killer but rather someone who lacks empathy or even a conscience to some degree.  
Sadism (to round out the Dark Tetrad): A person who enjoys making the people they work with suffer.

While interesting, these personality types are rare and account for only a small fraction of organizational disruption.  For most organizations, the reasons employees face termination don’t usually have much to do with such extreme traits found on a “dark triangle.” Instead, there’s a set of practical, common causes for termination that arise in the everyday grind of organizational life. For example, a recent analysis of termination data from a large property management company showed that nearly every involuntary exit could be traced back to one of the below three categories. Together, they compose what I call the “Termination Triad.”

1. Performance Issues: When the Job Outpaces the Skills

The first component of the Termination Triad is Performance. While it might seem obvious, the implications are significant: employees are often terminated because they lack the ability to meet job requirements. In a nutshell, they’re simply not getting the job done. This can happen for a multitude of reasons—perhaps the employee didn’t fully understand the expectations, or maybe the job requirements evolved beyond their current skill set. Whatever the reason, when performance consistently falls below the necessary level, termination becomes a likely outcome.

Why Performance Matters

Performance issues are often the hardest to address because they typically involve gaps in skills, training, or abilities. Performance standards are often clearly documented in job descriptions, and most employees understand that failing to meet these standards puts them at risk. From an organizational perspective, consistently low performance can drag down team efficiency and, ultimately, the bottom line.

For employees, addressing performance problems means being proactive about skill development, seeking feedback, and setting goals to improve performance in line with organizational standards. For employers, it’s crucial to provide constructive feedback, adequate training, and clear expectations. Terminating an employee for performance issues may be necessary, but it’s also avoidable in many cases if these preventative steps are taken.

2. Misconduct: When Ethical Lines Are Crossed

The second leg of the Termination Triad is Misconduct. Misconduct involves behaviors that violate company policies or ethical guidelines. This could include anything from dishonesty to inappropriate behavior or outright illegal actions. In the property management company’s data mentioned above, examples of misconduct included employees who were caught stealing, falsifying documents, or engaging in conflicts with colleagues. These types of actions not only breach company policy but can also damage trust, harm morale, and put the company at risk.

Why Misconduct Matters

Misconduct disrupts more than just workflow; it erodes the organizational culture. When employees engage in unethical behaviors, it affects everyone in the workplace and can set a precedent that’s hard to shake. Organizations typically have zero tolerance for these behaviors, which makes misconduct a leading cause of immediate termination.

To mitigate misconduct, organizations need to set clear policies and enforce them consistently. Training on ethics and codes of conduct can help, but it’s also essential for leadership to model these behaviors. Employees need to know that the standards are non-negotiable and that the consequences for breaching them are serious.

3. Dereliction: When Presence and Reliability Falter

The final element of the Termination Triad is Dereliction. This includes behaviors related to attendance, punctuality, and adherence to work schedules. Dereliction issues are among the most common reasons for termination across many industries, but they can often be the easiest to address if detected early. In the property management company’s data, dereliction issues were typically related to employees who were frequently late, absent without valid reasons, or unreliable in fulfilling their commitments.

Why Dereliction Matters

While it may seem minor, consistent absenteeism or tardiness can severely impact team dynamics, workload distribution, and overall morale. When one team member is repeatedly absent or late, others may feel they need to pick up the slack, which can lead to resentment. In some cases, dereliction can also impact clients or customers, tarnishing the company’s reputation.

For employees, avoiding dereliction means being dependable and adhering to company policies regarding attendance and schedules. For employers, it’s helpful to have clear policies and procedures for addressing attendance issues, and where possible, to be open to accommodating employees’ needs (e.g., flexible work arrangements) before resorting to termination.

Why the Termination Triad Matters for Organizations

Understanding the Termination Triad is valuable for both employers and employees because it sheds light on the core reasons that lead to employee departures. Unlike the rare and dramatic behaviors associated with the Dark Triad, these causes are practical, common, and actionable. By understanding the Termination Triad, organizations can take proactive steps to prevent unnecessary turnover.

For leaders, the Termination Triad can be a useful diagnostic tool. For instance, if a company finds that most of its terminations are due to dereliction, this may suggest the need for improved attendance policies or increased employee engagement initiatives. If performance issues are prevalent, it may be worth examining whether employees are receiving adequate training or whether roles are clearly defined. By identifying patterns in terminations, leaders can make informed changes to their policies and practices, potentially reducing turnover and creating a healthier workplace culture.

 

Article Contributed by Gary Kustis, Ph.D.

 



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