[mathgeek]

"This week, I need to speak to the other founder and fire our first employee before he leaves on a planned vacation. He’s a good developer, but I won’t fucking make payroll next week if I don’t clear him and his severance out of the company."

Is it wrong that I feel worse for this employee than for the author? He's looking forward to a (probably well-earned) vacation, and he's about to be forced into a job hunt instead.

[calinet6]

This happened to me 6 weeks ago. I'm now happily employed at another (slightly more stable) startup with good work and a better situation.

Trust me, any employee would be happier to be in a stable and improving startup than in one that's going downhill anyway. If they're a dev with startup experience, they'll have no trouble finding a new job and will be better for it.

Don't worry, just be honest and open with them ASAP. The worst thing you can do is keep them in the dark.

[joezydeco]

That's a tough spot and I've been there, as the employee that's on the fence as the management nail-bites over accounts receivable and wondering if they can make payroll.

I've since learned that you keep your ears to the ground at all times, in ANY company you work for.

You don't sit in your cube with your Dr Beat Headphones on, you listen to office talk. You overhear that phone call from a vendor asking where their overdue payment is. You notice the rise in closed-door meetings between management and the CFO. You make friends with the assistant that cuts the checks. When you've done it long enough, you know where you stand and when it's time to get the hell out before you're caught with your pants down.

[obviouslygreen]

This is just no way to live. If you find yourself doing this, you're either needlessly paranoid and worrying yourself into an early grave, or you're justifiably paranoid, and you should reconsider the choices you're making regarding employment.

Obviously we don't all have the option to bail at any time and find other work, but if this is the kind of culture you're seeing as normal, I feel very sorry for you.

Anyone in this position should -- for their own good -- at least attempt to take a longer view and see if they have options that don't involve constantly sleuthing to narrow down your job's expiration date. Unless you actually like living like this... in which case, hey, it takes all kinds. ;)

[pnathan]

No, it's situational awareness. "Is this company doing well? Or is it not?"

That's a very reasonable and business-minded way to approach your employment. You have a very direct interest in the company's success: your paycheck, reputation, friends, etc. Being aware if the company is exploding is simple sanity.

[casual_slacker]

Sustained "situational awareness" and paranoia aren't all that different.

[joezydeco]

That's the term I was looking for! Thanks.

[jusben1369]

I think to add to OP's point. This is a smart move for any company whether large or small. Large one's do layoffs as well as small ones. You probably should be more aware when you join a startup that has a burn vs generates cash but the symptoms discussed here are the same ones that Cisco goes through prior to a big layoff as well as a 10 person startup.

[joezydeco]

I'm not advocating sneaking around and spying on your co-workers. I'm not suggesting paranoia.

What I'm saying is that it's not a bad idea to understand the health of your employer (commercially, competitively, and financially) and recognize when that health changes for better or worse. If I get up and ask 10 co-workers who our biggest competitors are, I can guarantee 5 of them couldn't answer that question. If I asked the winning 5 which ones were growing and could possibly eat our lunch, 4 of them would fail that test.

Have you ever been let go from a job after being told for months/years that everything was fine and the company was doing great? I have. Luckily, at the time, I had no substantial obligations such as raising a family. Now I do.

I learned from that point on to never be blindsided again. And it's worked well for me so far. And I'm not a paranoid person at all. I sleep pretty well, actually.

[hidingmyname]

You should. I feel fucking shitty about this.

[Nutella4]

Then make plans to do this shitty job in as kind and professional manner as possible.

That means NOT stringing people along. Sit down and figure out whether you're going to be able to keep people employed at 100% of their current pay and benefits. If you know you can't, then the biggest favor you can do for them is to lay them off quickly so they can start looking for a new job immediately.

If you can make some calls to get them leads at other places that's great, but the most helpful thing you can do for them is to let them go as soon as you know that they have no future at your company.

I've done firing and layoffs and I know it's hard. Delaying it makes it all much worse, for you and the departing employees.

[damon_c]

Can't you wait till he gets back so he can have a good vacation?...Although I've seen the whole "got fired upon returning from vacation" thing happen a few times. That sucks too! Sorry for both of you.

[throwit1979]

Apparently you missed the part about not meeting payroll. There are few things worse( legally, in employment law )than missing payroll.

[beat]

Ugh. I remember what it was like the first time the 2000-era dotcom I was at missed payroll. A co-worker and I had taken the day off to take our kids to the state fair, and found our money wasn't where we thought it would be. They announced the payroll shortfall the day it happened, in company email we didn't read because we were off that day.

Kinda sucked.

[RyJones]

I've alerted firms that missed payroll of the law violation via a couriered legal notice from a labor lawyer. I got my money when nobody else did.

[UK-AL]

Its why I don't get the idea that being an employee is a 'safe' option. Your only as safe as the company you are working for. And frankly you look better as failed founder, then a developer at a failed start up.