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Letting someone go in a crisis/city on lockdown?

Topics relating to managing people and relationships

Cat Lady

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I co-run a startup radio station. We have a half-time contractor that we were hoping to gently let go in April, after a big event next week. The event is now cancelled due to C0VlD-19 concerns (and ban on gatherings over 250). This contractor is great, we like her, but she no longer has the skillset we need to grow.

BUT We now we have ethical concerns about letting someone go when the city is on lockdown, and the space we're in which has revenue revolving around events, advertising for events, and music performances, is suffering major blows due to C0VlD-19.

We can pivot our income streams (providing livestreams for events without an audience, emergency funding from arts foundations, etc) but this person doesn't have the skillset to serve us now. Other people on staff do, if we had the income to support greater hours for them. But we're down over $30K in projected revenue in just the next month, and we only have ~3 months runway and we still need to keep (several) radio signals on air 24/7 or we get massive fines from the FCC.

Advice for how to handle this situation? Do we just try to get her to do the work we need to do to pivot? Is it wildly unethical to cut someone's main source of income when literally no one is hiring? I wasn't a business owner, or even a manager, in the last recession, so I didn't have to make these ethical calls. This feels unprecedented beyond just "the economy is contracting". Help.
 
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I co-run a startup radio station. We have a half-time contractor that we were hoping to gently let go in April, after a big event next week. The event is now cancelled due to C0VlD-19 concerns (and ban on gatherings over 250). This contractor is great, we like her, but she no longer has the skillset we need to grow.

BUT We now we have ethical concerns about letting someone go when the city is on lockdown, and the space we're in which has revenue revolving around events, advertising for events, and music performances, is suffering major blows due to C0VlD-19.

We can pivot our income streams (providing livestreams for events without an audience, emergency funding from arts foundations, etc) but this person doesn't have the skillset to serve us now. Other people on staff do, if we had the income to support greater hours for them. But we're down over $30K in projected revenue in just the next month, and we only have ~3 months runway and we still need to keep (several) radio signals on air 24/7 or we get massive fines from the FCC.

Advice for how to handle this situation? Do we just try to get her to do the work we need to do to pivot? Is it wildly unethical to cut someone's main source of income when literally no one is hiring? I wasn't a business owner, or even a manager, in the last recession, so I didn't have to make these ethical calls. This feels unprecedented beyond just "the economy is contracting". Help.

She doesn't have the skillset to help you guys grow. Can she be trained or given the skills needed to help you grow?
 

lowtek

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How quickly can she come up to speed? Perhaps she has other untapped skill sets you're unaware of? Maybe she has connections that you can leverage in the new direction?

I think talking to her, explaining the situation, and brainstorming on how to move forward is the reasonable course of action. If you guys can't work something out then the course is clear.
 

Cat Lady

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How quickly can she come up to speed? Perhaps she has other untapped skill sets you're unaware of? Maybe she has connections that you can leverage in the new direction?
She's been told time and time again that she needs to do XYZ for marketing but she doesn't - she'll do ABC but not XYZ. She's a phenomenal project manager, but if something requires outside marketing contact (like phone calls with warm leads on potential events), or understanding the ins-and-outs of digital advertising or social, she won't do it. She's reliable as F*ck, though. If she says X will happen, it will happen. But she won't promise Y if she doesn't want to do Y.

For example, she'll always make sure the email newsletter will get out, or update the facebook spreadsheet, but she "doesn't do twitter" (we have like 20K twitter followers, it's an underutilized resource). Or we have $2K (free) to spend on google ads, but she won't utilize it. She doesn't know about A/B tests, or branding, or graphic design.

I think she probably feels like we don't pay enough to justify anything that isn't in her comfort level because she's a part-time contractor (22 hours a week, $21.50/hr, our second-highest paid staffer). She was also asked to go FT about 6 months ago and take on more of these marketing responsibilities, and turned us down.

We have people that have those skills, but we need the extra cash flow from letting her move on to raise their salaries.
 
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CareCPA

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She's been told time and time again that she needs to do XYZ for marketing but she doesn't - she'll do ABC but not XYZ. She's a phenomenal project manager, but if something requires outside marketing contact (like phone calls with warm leads on potential events), or understanding the ins-and-outs of digital advertising or social, she won't do it. She's reliable as F*ck, though. If she says X will happen, it will happen. But she won't promise Y if she doesn't want to do Y.

For example, she'll always make sure the email newsletter will get out, or update the facebook spreadsheet, but she "doesn't do twitter" (we have like 20K twitter followers, it's an underutilized resource). Or we have $2K (free) to spend on google ads, but she won't utilize it. She doesn't know about A/B tests, or branding, or graphic design.

I think she probably feels like we don't pay enough to justify anything that isn't in her comfort level because she's a part-time contractor (22 hours a week, $21.50/hr, our second-highest paid staffer). She was also asked to go FT about 6 months ago and take on more of these marketing responsibilities, and turned us down.

We have people that have those skills, but we need the extra cash flow from letting her move on to raise their salaries.
Sounds like you've given her plenty of chances to learn the skills you actually need.
I'd remind her of this when you let her go. I wouldn't mention revenue, or COVID, or anything else. You told her the skills she needed to continue working there, and she choose not to work on them.
 

Cat Lady

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Sounds like you've given her plenty of chances to learn the skills you actually need.
I'd remind her of this when you let her go. I wouldn't mention revenue, or COVID, or anything else. You told her the skills she needed to continue working there, and she choose not to work on them.
Is it not unethical to let someone go right now, though? Especially a contractor who will not be able to get unemployment.
 

lowtek

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Is it not unethical to let someone go right now, though? Especially a contractor who will not be able to get unemployment.

No. It's not unethical. You're running a business, not a charity or a church. She wanted the "perks" of contract work, that means she gets the downsides as well.

The fact you asked her to learn something new and she refused tells me all I need to know about how this is going to end. Get rid of her asap and divert the funds to the people who can use it the most. If you keep her around at this point you'll just waste resources and put the business in jeopardy. Then everybody is out of a job.
 
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Cat Lady

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No. It's not unethical. You're running a business, not a charity or a church.
Technically we're running 2 out of 3. We're both a 501c3 and a for-profit LLC for FCC reasons. ;)

But you make a good point.
 

CareCPA

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Is it not unethical to let someone go right now, though? Especially a contractor who will not be able to get unemployment.
No, it's not.
If you want to continue bringing in enough to support the rest of the team who is actually doing their job, then you need to let go of those who are a drain on resources.

If letting go of a person who doesn't want to learn the necessary skills increases your run rate from 3 months to 4 months, isn't that for the best?

If they had put in effort to learn the new skills, my opinion may be different.
 

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I co-run a startup radio station. We have a half-time contractor that we were hoping to gently let go in April, after a big event next week. The event is now cancelled due to C0VlD-19 concerns (and ban on gatherings over 250). This contractor is great, we like her, but she no longer has the skillset we need to grow.

BUT We now we have ethical concerns about letting someone go when the city is on lockdown, and the space we're in which has revenue revolving around events, advertising for events, and music performances, is suffering major blows due to C0VlD-19.

We can pivot our income streams (providing livestreams for events without an audience, emergency funding from arts foundations, etc) but this person doesn't have the skillset to serve us now. Other people on staff do, if we had the income to support greater hours for them. But we're down over $30K in projected revenue in just the next month, and we only have ~3 months runway and we still need to keep (several) radio signals on air 24/7 or we get massive fines from the FCC.

Advice for how to handle this situation? Do we just try to get her to do the work we need to do to pivot? Is it wildly unethical to cut someone's main source of income when literally no one is hiring? I wasn't a business owner, or even a manager, in the last recession, so I didn't have to make these ethical calls. This feels unprecedented beyond just "the economy is contracting". Help.

Everyone's job is on the line if you make a decision that hurts the company financially. If you have to let her go, you just have to. If you can give her a parachute or something, maybe that's what you do. Having her do work that is outside her skillset sounds about as good as hiring people out of charity... it usually does not work out well.
 
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Rabby

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She's been told time and time again that she needs to do XYZ for marketing but she doesn't - she'll do ABC but not XYZ. She's a phenomenal project manager, but if something requires outside marketing contact (like phone calls with warm leads on potential events), or understanding the ins-and-outs of digital advertising or social, she won't do it. She's reliable as F*ck, though. If she says X will happen, it will happen. But she won't promise Y if she doesn't want to do Y.

For example, she'll always make sure the email newsletter will get out, or update the facebook spreadsheet, but she "doesn't do twitter" (we have like 20K twitter followers, it's an underutilized resource). Or we have $2K (free) to spend on google ads, but she won't utilize it. She doesn't know about A/B tests, or branding, or graphic design.

I think she probably feels like we don't pay enough to justify anything that isn't in her comfort level because she's a part-time contractor (22 hours a week, $21.50/hr, our second-highest paid staffer). She was also asked to go FT about 6 months ago and take on more of these marketing responsibilities, and turned us down.

We have people that have those skills, but we need the extra cash flow from letting her move on to raise their salaries.

Yeah, no. This doesn't sound very good. She doesn't want to do things that are part of the job? You don't pay her enough to do twitter? It sounds like she might have been a bad fit for what you had in mind in the first place. I would respectfully part ways and help her to the extent you can with getting the next thing. For your next hire, make a scorecard and be sure that the person you hire covers all the most important skills and personality traits (like being outgoing or making calls) for the job.
 

Cat Lady

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For your next hire, make a scorecard and be sure that the person you hire covers all the most important skills and personality traits (like being outgoing or making calls) for the job.
Can you tell I wasn't part of the team when she got hired? (I ran my own business alongside the station for 3 years, and just a few months ago got brought on to help run things). I walked into all this. The org chart and personnel situation was the first priority for me to fix, but it all feels more complicated in the situation of this crisis. Usually I'm pretty good at letting people go and hiring (it's never fun but I'm okay at it).
 

Rabby

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Can you tell I wasn't part of the team when she got hired? (I ran my own business alongside the station for 3 years, and just a few months ago got brought on to help run things). I walked into all this. The org chart and personnel situation was the first priority for me to fix, but it all feels more complicated in the situation of this crisis. Usually I'm pretty good at letting people go and hiring (it's never fun but I'm okay at it).

Oof, yeah, I've had to deal with existing bad hires too. Often very nice people, but wrong job for them. Well, I hope it goes as well as this sort of thing can go :)
 
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becks22

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Honestly if you're worried about potential legal actions keep track of her performance; 1099 workers by default are treated differently by the law but I get that you're worried if you let her go at the same time of the coronavirus outbreak. If you have any examples or have documented times you've asked her to do XYZ and she does ABC, you're good.

The next few months lots of employees will be losing their job. It's the reality of when something like this occurs, you don't need to be worried about a lawsuit in my opinion.
 

Cat Lady

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Honestly if you're worried about potential legal actions keep track of her performance;
We're an at-will state and she's not in a protected class. We're not worried about legal action, just doing right by a member of our community.

we could be worried about other staff morale though. We're a small team - 8 staff, 10 contractors - and we're worried about what it looks and feels like to let someone who has been on the team for 2 years let go in this current crisis.
 

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Is it not unethical to let someone go right now, though? Especially a contractor who will not be able to get unemployment.

Suppose it is. But isn't more unethical if you keep her, she doesn't pull her weight, and the company goes under & everyone loses their job?

Consider what example does it set that you keep someone who doesn't do all the requirements of the job?
 
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Is it not unethical to let someone go right now, though? Especially a contractor who will not be able to get unemployment.
It might be. Probobly is. You might make an enemy.
In the thread it sounds like you`ve made up your mind about firing her, giving all the right arguments as to why firing her is a good descision.
Then you contest the ones who agree with you.
I cant be sure, but I think you have a conflict with your conscience.

If thats the case, then you can give her one last chance.
My advice is, give her space, free time, resources, udemy courses, support, whatever.
Make a true (but not time costly) effort to help her gain more skills.
Be overt about it, "you need to learn this, because we need you to do this"
If she says: No. Fire her the same day.
If she says: I`ll try. Fire her the same day.
If she says: Yes. All good.
Put yourself in a position in which you cant lose and you dont conflict with your conscience.

FYI. Because of the emergency state in the US, one of the clients I work for dropped me like a hot potato. In the same day. No work for them starting monday.
I get that you want to be good towards a member of your community, but business doesnt go that way sometimes.
 

Andy Black

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1) “Put your own oxygen mask on first.”


2) When I have to make tough decisions I think of myself as being the guardian of my business.

> What is in the best interest of my business?

> If was to report to my business that we did XYZ even though we know ABC then what would my business think?


3) Sometimes people are relieved to be let go if they’re being asked to do things they don’t want to do.
 

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It's possible she doesn't realize the gravity of her actions.
She may think that since she is part-time, she's in a better position to say 'no', if you know what i mean. She is paid by the hour, which means, as long as she is fulfilling her duties within that hour (even if she doesn't do twitter, she is still fulfilling her duties in other areas).

I think you need to make it clear, that if she doesn't pick up these new skills, she will be let go.
Make this part clear so she realizes the consequences of her actions (or inaction), and if she still doesn't, then you can let her go with a clear conscience.
 
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Mattie

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I co-run a startup radio station. We have a half-time contractor that we were hoping to gently let go in April, after a big event next week. The event is now cancelled due to C0VlD-19 concerns (and ban on gatherings over 250). This contractor is great, we like her, but she no longer has the skillset we need to grow.

BUT We now we have ethical concerns about letting someone go when the city is on lockdown, and the space we're in which has revenue revolving around events, advertising for events, and music performances, is suffering major blows due to C0VlD-19.

We can pivot our income streams (providing livestreams for events without an audience, emergency funding from arts foundations, etc) but this person doesn't have the skillset to serve us now. Other people on staff do, if we had the income to support greater hours for them. But we're down over $30K in projected revenue in just the next month, and we only have ~3 months runway and we still need to keep (several) radio signals on air 24/7 or we get massive fines from the FCC.

Advice for how to handle this situation? Do we just try to get her to do the work we need to do to pivot? Is it wildly unethical to cut someone's main source of income when literally no one is hiring? I wasn't a business owner, or even a manager, in the last recession, so I didn't have to make these ethical calls. This feels unprecedented beyond just "the economy is contracting". Help.
This kind of stuff makes me nervous for the simple reason if you let go of people at a "Crisis" point how does that legally come out after the crisis. Just wondering?
 

GoodluckChuck

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If she's a contractor then you hire her to deliver specific results, right? You can't tell her what she needs to learn or else she would be an employee.

I work with contractors all the time and if I need something done that one can't do, I hire another. The one that doesn't have the right skills gets less work from me.

Can this be the case for you? Can you tell her you're looking for someone that has the skills you've been looking for? If it's not her, maybe she knows someone else?

You don't really fire a contractor, you just don't hire them again. You only fire employees.
 

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I guess she should work harder and learn some more skills if she needs the job that bad. Warn her and then fire her.

If somebody else is willing to do the work, learn the skills, and be a better employee, it is unethical to let that person be unemployed while this person continues to work and collect money from you. Is it not?
 
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Cat Lady

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This kind of stuff makes me nervous for the simple reason if you let go of people at a "Crisis" point how does that legally come out after the crisis. Just wondering?
I said this above but I'll state it again: We're an at-will state, she's a contractor with complete control over her schedule and not an employee, and she's not in a protected class. We're not worried about legal action, just doing right by a member of our community.
 

Cat Lady

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Can this be the case for you? Can you tell her you're looking for someone that has the skills you've been looking for? If it's not her, maybe she knows someone else?

You don't really fire a contractor, you just don't hire them again. You only fire employees.
Yea, she's been doing the thing where she's looking for volunteers (since we're partially a 501c3) to do the work that she can't do - design and such. But it's slow moving and she doesn't really know what she's looking for (and probably because she expects too much out of volunteers. I'm happy to use volunteers but only where it is a value-add to them or a way to give back to their community and not just trying to get free skilled labor instead of hiring someone).

I wish I could get the other person who runs the station to grasp that a contractor isn't fireable, just not re-hirable. I guess I just have to be bad cop for awhile. We're dealing with several content creators that have ongoing monthly contracts with our station that are assumed to stay in perpetual renewal, with no actual paper contract. I walked into a lot of things I'm trying to undo.
 

Mattie

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I said this above but I'll state it again: We're an at-will state, she's a contractor with complete control over her schedule and not an employee, and she's not in a protected class. We're not worried about legal action, just doing right by a member of our community.
Ah...didn't see it. Thanks for asnwering.
 
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