{"id":5374,"date":"2013-08-12T09:00:41","date_gmt":"2013-08-12T16:00:41","guid":{"rendered":"http:\/\/foundersnetwork.com\/?p=5374"},"modified":"2018-11-18T22:47:38","modified_gmt":"2018-11-19T06:47:38","slug":"on-severance","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/on-severance\/","title":{"rendered":"On the Topic of Severance"},"content":{"rendered":"

The following is a guest post from fnBlog Contributor Richard White<\/a>, Founder and CEO of UserVoice<\/a>. This post, originally posted on Richard White’s blog White Lies- A collection of blog post focused on seeking out the complex truths behind the simple lies of the (startup) world.<\/em><\/p>\n

On Severance<\/span><\/p>\n

I recently observed a heated startup mailing list discussion about whether a to give severance to an employee of a early stage (but funded) startup. Most of the discussion focused on what was legally required and whether or not to couple severance with a separation agreement. This was my response:<\/p>\n

I hate severance. Hate it.<\/strong>\u00a0The thought of paying someone I was forced to fire because he (or she) is incompetent burns me up inside.<\/p>\n

However. I\u00a0always<\/em>\u00a0provide severance and I\u00a0always<\/em>\u00a0require a departing employee sign separation agreements. For everyone from an executive to the janitor.<\/p>\n

Why? Because it\u2019s a small town and current and future employees will notice how you take care (or don\u2019t take care) of people on their way out.<\/p>\n

Other employees won\u2019t always know why a former employee was fired, but they will know that you fired them with little notice* and no severance. It just looks bad and makes people worry about working for you.<\/p>\n

Cash isn\u2019t king. Your reputation is.<\/strong><\/p>\n

But then again. I\u2019ve been told I\u2019m a bit old school.<\/p>\n