On Severance

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:

I hate severance. Hate it. The thought of paying someone I was forced to fire because he (or she) is incompetent burns me up inside.

However. I always provide severance and I always require a departing employee sign separation agreements. For everyone from an executive to the janitor.

Why? Because it’s a small town and current and future employees will notice how you take care (or don’t take care) of people on their way out.

Other employees won’t 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.

Cash isn’t king. Your reputation is.

But then again. I’ve been told I’m a bit old school.


Now read this

On the Inevitability of Automation

There’s a lot of discussion about whether automating people out of a job is ethical or even good for society. I’ve been called some not so nice things for suggesting that we solve the BART strike by automating it (BART trains are... Continue →