Being “Managed Out” –
Part 1: The 7 Basics

A Preliminary Note: In reading our “Managed Out” posts, please don’t come to believe we are not fond of Managers, Senior Managers or Executives. That’s not at all the case; in fact, they comprise most of my clients, and have for over 40 years. Just as there are “good employees” and “bad employees,” so, too, are there “good and bad” managers. We always hope our firm’s employees, and our firm’s clients are on the honest, straightforward and respectful end of the spectrum. We know and always bear in mind that no one is perfect. 

LESSON TO LEARN: – “The Basics of Being Managed Out”

1. What is meant by “Manage Out?” Despite searching through several dictionaries, we have not found a single definition of “manage out” or “managed out.” The phrase commonly refers to a process of manipulating facts, events and circumstances to create a false basis to wrongfully terminate an employee from her or his job by one or more of (a) mistreating the employee in so harsh, demeaning and dispiriting a manner so as to coerce the employee, seemingly without choice, to resign in frustration, anger and disgust; (b) manipulate facts, events and circumstances so that the employee is perceived as deserving termination for poor performance or serious misconduct, or both at the same time.

2. When does “Managing Out” Usually Happen? Simply put, “managing out” typically takes place when a Manager strongly desires to terminate an employee despite his or her being a well-performing and responsible employee without there existing a proper, legitimate or legal basis to justify doing so.

So, the Manager may resort to dishonest and fraudulent means, illegal, and deceitful measures, thinking that they will “get away with it,” often with the assistance, support and/or direction of Human Resources, Employee Relations, Legal staff and others.

3. What are the Most Common Reason(s) Managers “Manage Out” Certain Employees? While there are innumerable reasons employees are “managed out,” we have found over the decades that there are six (6) most common reasons “managing out” takes place:

Common Reason “i” – Your Manager views “Managing Out” the way Many Others View Evading Taxes: a way to get what they want that is quicker, easier, and more convenient than getting what they want by being honest, straightforward, and respectful of people, rules and laws. This may sound near comical, but it is, in fact, what seems to be the most common of all reasons Managers sometimes choose to “manage out” employees they find “inconvenient” for one reason or another.

Common Reason “ii” – Your Manager is a “New Arrival,” especially if hired from outside the organization. Some people refer to this context as “New Captain on Board, Existing Crew Walks the Plank.” It is extremely common for a newly-hired Manager to want to bring into his or her new team of friends, former colleagues, or long-term comrades to serve him or her with unquestioned loyalty. If you have a new Manager arrive, watch out very carefully for the “managing out” efforts described below.

Common Reason “iii” – Your Manager is Intimidated by Your Success, Business Relations or Achievements, and thus sees you as a potential competitor one day for his or her job. In this context, getting you to quit – that is, to “remove yourself” quickly, quietly and with little if any severance – is often the tactic chosen. It is in this context that the more productive, personable and professional you are, the greater is your risk of being “managed out.” So, if you are perceived to be one who is positioning herself or himself for likely future advancement . . . you should best beware.

Common Reason “iv” – Your Manager wants to, or has been Directed to, Reduce Headcount by “Any Means Necessary . . . “ When economists, investors or Senior Management expect that economic contraction may likely take place in coming months or years many employers decide to act preemptively and surreptitiously to reduce personnel overhead, without admitting it publicly. Thus, twenty people may lose their jobs by being “managed out,” but there is no public word of “layoffs,” and minimal if any severance expense, even though layoffs are taking place.

Our clients who are HR professionals have shared with us that in this context Managers are often provided by senior management (a) headcount reduction targets, (b) headcount reduction deadlines, and (c) very limited or no severance monies in their budgets, thus setting the stage for Managers, with little choice, having to resort to “managing out” employees to meet such quotas and deadlines.  

Common Reason “v” – Your Manager Views You as “Too Honest,” “Too Loyal to the Company,” or “Too Smart.” It is very common that employees who express hesitancy or even opposition to dishonest practices, to improper conduct, even to illegal acts at work, are subject to being “managed out.” This often arises to a kind of retaliation which is almost surely in violation of company policies, government regulations (city, state or federal), or even the law. 

Common Reason “vi” – When you are only one, or one of only a few, of “your kind.” Whether it is a matter of gender, race, religion, pregnancy, disability, national origin or otherwise, some people are just “not comfortable” with diversity, or have deep-seated resentments against “your kind.” While it may be that people are less comfortable with others from different cultures, different backgrounds, or those with different looks, to act upon that “discomfort” is improper, in violation of most companies’ policies, and surely illegal under city, state and federal laws. For example, if in your city people of your ethnic background comprise 27% of the adult population, and you are the sole manager out of 200 who is of “your kind,” something just doesn’t seem right.

4. Can’t any “At Will” Employee be Legally Terminated for Any – or No – Reason? Plain and simply: No. First, as noted above, the “reason” cannot be in violation of regulation, law or policy. Second, termination cannot be accomplished by (a) breach of agreement, (b) fraud, (c) destruction of a person’s reputation, (d) extortion, (e) violation of corporate policy, or any other number of wrongful practices. Any person who says otherwise is simply misinformed.