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November 21, 2012

HR Fact Wednesday: Performance Reviews for High Level Employees? YES!

Due to the Thanksgiving holiday I am posting my usual HR Fact Friday update a bit early this week. Now isn’t that something to be thankful for? Seriously, from all of the staff at HRN Performance Solutions to each of our viewers, we wish you a Happy Thanksgiving. We are truly grateful for the opportunity we have had for the past 23 years to provide our wonderful clients with cost effective HR solutions and consulting services that improve individual and organizational performance. Thank you.

Now for this week’s HR Fact. Does a company need to conduct and document performance reviews for their high-level executive staff? Of course. Any termination, regardless of position needs to be well considered and have supporting documentation. This is never more important than with executive staff who are the highest paid and also the most likely to seek legal representation. The most relevant documentation for any staff action involving disciplinary action including termination is the performance review.  Discharge or possible termination of a high level staff member where there was little or no evidence of any sort of performance review of that employee is walking on shaky ground and leaving the door wide open for costly litigation. These types of employees, usually the highest paid in your company, can be the most attractive to plaintiff-side employment lawyers anyway, but the failure to have any documented track record of discipline or performance review to support a discharge makes them even more attractive as plaintiffs. Employers need to effectively assess, review and document the performance of their top managers, just as much as they need to do so for other employees. Failure to do so exposes an employer to a potentially-significant risk of liability when a fired executive employee chooses not to depart amicably.

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