Handling the Death of an Employee

Some of life’s realities can be harsh, especially for an employer or manager who has to handle the death of an employee. In fact, I think dealing with the death of an employee can be one of the toughest jobs anyone can face. 

In preparing for this Insight, I was reminded of the time when the late CEO of McDonald’s, Jim Cantalupo, died suddenly in April of 2004. Such sudden and shocking occurrences serve to remind us how important it is that businesses have succession plans in place. 

Prepare for the unexpected: Obviously, McDonald’s board of directors strongly believed in this practice, as they named Cantalupo’s successor shortly after his death became known. If interested, you can read more of the Associated Press (AP) details at www.msnbc.msn.com. 

Even so, we do not regularly have that many organizations that approach this level of awareness and planning. And regardless of the employee position, status or level, every employee has responsibilities and obligations that organizations must properly manage in the event something unexpected happens. 

Here are some practical tips that may help employers prepare for this emotional event: 

1. Plan to be prepared. One of the most common mistakes that organizations make is a lack of preparation. Obviously no one wants to face the unexpected death of an employee. But, at least if you have an outline of what steps to take, you can help minimize the effects of handling a shock at a time when emotions are running high.
2. Realize the importance of family considerations and the importance of their privacy, including matters of confidentiality. Respect the family’s wishes—for instance, be very cautious about releasing any personal information, especially anything confidential. Even though people try to do the right things and they try to be sensitive and helpful, they may inadvertently do hurtful things or even do things that border on being illegal. This is why it’s important to be careful about what information is released. In addition, in our diverse society, an employer has to be aware and respectful of various cultural beliefs and differences, etc. that often exist in today’s workforce.
3. Avoid making assumptions about the employee’s survivors. Some family survivors want to keep all details private, while other families might appreciate the organization paying its respects in a more public way. You just never know, so do not assume that everyone wants either a very private or a public type of response.
4. Exercise caution in the area of beneficiary designation for any benefits, including life insurance or retirement plans. And since the law does not specify designations of life insurance beneficiaries, they can be named at the employee’s choice, So strictly adhere to whatever procedures are in place where it concerns notification of beneficiaries. Generally, I recommend that these matters be handled by the life insurance company or by the policy administrator, instead of trying to get in the middle of that.
5. Plan to handle both the emotional and the practical issues that naturally come up. An employee death causes very high levels of stress. When the death of an employee occurs, you will need to inform executives, HR and other managers or employees who need to know. Next, and of course in a very sensitive manner, contact the family and ask who might be serving as the contact person. This person can help communicate any kind of funeral arrangements or wishes—including those of the family. If you have an employee assistance program (EAP), you might offer that assistance to employees who may want to seek counseling. You might also offer onsite grief counseling for co-workers. 

These issues, as described above, relate to the more emotionally related concerns. On the practical side, you will also want to reassure employees—particularly if it’s the death of an officer of the company—that business will go on. Sometimes employees might worry or think: “If something happened to the CEO, will they close the doors?” Fears like that can spread internally and externally. So it’s always a good practice to have procedures in place; for instance, who will contact the media, if that applies. Or who will contact clients and customers—or those people who had a working relationship with the now-deceased employee? You will also need to figure out how you will manage employees attending funeral or memorial services while, at the same time, managing to meet business or customer needs. 

My next HRTools.com Insight will cover how the death of an employee also affects other practical and mechanical or operational aspects of a business, and how the process of making those related decisions can be managed.

I think dealing with the death of an employee can be one of the toughest jobs anyone can face.