How to Fire an Employee: A Guide to Letting Them Go Gracefully

Improve employee attendance

In an ideal world, firings should never happen. But both the end of 2023 and the first quarters of 2024 were marred by mass layoffs.

Market giants such as Alphabet, Amazon, Citigroup, Ebay, Macy’s, Microsoft, Shell, Sports Illustrated, and Wayfair announced significant job cuts, all claiming it was not an easy decision for them.

Parting ways with an employee never is. Managers admit this is the part of their job they hate most.

It’s difficult and stressful for them, not less than for the fired employees – but often, it is an inevitable process.

When letting someone go becomes necessary, handling the situation with professionalism, empathy, and respect is crucial.

Here’s a guide on how to navigate this process with dignity and respect.

The Difficult Decision: Why Should You Want to Terminate an Employee

While the decision to terminate an employee is undoubtedly difficult, there are circumstances where it becomes a necessary step for the organization’s well-being. Here are just a few of these:

  • Performance and conduct issues that arise when an employee consistently fails to meet job expectations, disregards company policies, or engages in misconduct that undermines the work environment.
  • Organizational restructuring when employee roles and responsibilities undergo significant changes. This often results in the need to realign the workforce with the company’s new strategic direction.
  • Situations when an employee’s actions violate ethical standards or legal regulations, posing potential risks to the company’s reputation and legal standing.
  • Repeated instances when an employee’s behavior, values, or work style consistently clash with the company culture. These can lead to disruptions and conflicts within the team.
  • Issues with employees who consistently demonstrate a lack of alignment with the company’s values, mission, or long-term goals may hinder the organization’s progress.
  • The difficult reality of company downsizing in economically challenging situations.

How to Let an Employee Go on Good Terms: The Ultimate Checklist

Whether due to restructuring, performance issues, or other reasons, letting an employee go on good terms can minimize the negative impact on both the departing employee and the remaining team.

Below you will find some advice from seasoned HRs on handling the separation the right way.

1. Discuss Performance Problems

Maintaining open and transparent communication with the employee about any performance issues lets you handle termination with empathy and professionalism and can sometimes help avoid it.

Do:

  • Make sure you explicitly let the employee know that you see their performance or attitude as problematic.
  • Clearly outline the areas where improvement is needed and provide specific examples to support your feedback.
  • Document all performance-related discussions, including feedback, warnings, and improvement plans.

Don’t:

  • Make impulsive decisions. Take time to carefully consider the decision to terminate an employee.
  • Wait until the last minute to announce the termination. Performance issues should have been discussed in prior conversations, and the termination should not come as a shock.
  • Disclose the details of firing to others. Confidentiality is crucial in maintaining trust within the workplace.

HR Tips:

Performance-related firings should not happen too often. If you spot a poor performer and identify the reasons for the productivity decline early, you can give the employee a chance to improve.

For example, approving an extra leave may help solve personal problems that cause issues at work.

Another option may be transferring a person to another position or department that fits their abilities more.

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2. Make Sure You’re Acting Legally

Before announcing your decision to fire an employee and setting their termination date, check their contract (if they’ve signed one).

Remember that you cannot fire anyone for reasons not listed in the contract or contradicting federal and state labor laws.

Do:

  • Ensure that the termination process aligns with company policies and legal regulations. Familiarize yourself with local labor laws, employment contracts, and any relevant regulations to ensure that the termination is conducted within legal boundaries.
  • Seek guidance from HR professionals or legal counsel to ensure that all necessary steps are followed and that the termination process complies with legal requirements.
  • Prepare documentation that can serve as a record of the employee’s performance history. It can come in handy if the termination decision is questioned.

Don’t:

  • Neglect legal obligations or rush through the termination process without ensuring compliance with relevant laws and regulations.
  • Base your termination decision on discriminatory factors such as race, gender, age, religion, disability, or any other protected characteristic.

HR Tips:

There are quite a few things to remember when it comes to navigating the legal aspects of employee termination. That’s why you should regularly review your procedures with legal counsel and provide extensive training for managers and supervisors to let them handle terminations in compliance with evolving laws and regulations.

3. Run a face-to-face meeting to tell the news

The only right way to communicate the termination decision is a face-to-face meeting. Emails, telephone calls, or letters don’t work – deliver the news personally. Otherwise, you will create an environment where people will feel blindsided and be not willing to trust you.

Do:

  • Select a private and comfortable setting for the meeting to ensure confidentiality and respect for the departing employee.
  • Clearly communicate the reasons for termination while acknowledging this decision’s impact on the employee.
  • After the meeting, follow up with the departing employee to provide any necessary paperwork and details about benefits and answer any questions. Clear and supportive communication during this transition period is crucial.

Don’t:

  • Rush through the termination meeting. Take the necessary time to ensure that all relevant points are communicated clearly and respectfully.
  • Make promises you can’t keep, such as guaranteeing rehiring in the future or overcommitting to support services. Be transparent about what the company can realistically offer in terms of support.

HR Tips:

Keep in mind that lawsuits are not an uncommon consequence of termination. So be sure to have someone (ideally from HR, but any trusted employee can work if you don’t have an HR department) as a “witness” who can confirm that you acted legally and ethically in case of a conflict.

4. Frame It in a Tactful Way

When choosing the right wording, be sure to frame the decision as non-personal. Think of focusing on the logistics and poor fit: your needs are X, the employee’s talents are Y and Z, so they just don’t match your current needs and don’t have an opportunity to show their best work here.

Do:

  • Plan what you will say and anticipate potential reactions from the employee during the termination meeting.
  • Remember here that being direct doesn’t mean being disrespectful or rude. Frame the conversation as an issue that needs to be corrected and express your confidence that the employee will be able to handle this successfully.
  • Use clear and respectful language when explaining the reasons for the termination. Avoid blaming or shaming the employee.

Don’t:

  • Play the blame game. Refrain from blaming or shaming the employee during the termination conversation. Instead, focus on discussing performance issues objectively and professionally.

HR tips:
You’re not alone in feeling awkward about having the dismissal conversation. There are many there are many scripts on the Internet that you can adjust to your specific scenario. These will help you handle the conversation better and avoid typical mistakes and awkwardness.

5. Express Gratitude

Even if the employee’s productivity and contribution were below your expectations, thank the person for them. This is especially true for those who’ve been trying hard but eventually didn’t manage to meet performance requirements.

Do:

  • Start the conversation by acknowledging the contributions and efforts the employee has made during their time with the company. Recognizing their hard work can help soften the impact of the termination and show that their efforts were valued.
  • During the conversation, highlight the employee’s positive attributes, skills, and strengths. Emphasize that while the current situation necessitates termination, their valuable qualities are appreciated and recognized.
  • Take the opportunity to reflect on any lessons learned from the experience. Evaluate whether there were any systemic issues that contributed to the decision to part ways with the employee and consider how similar situations can be handled differently in the future.
  • Offer information about available outplacement services, severance packages, or other support resources to assist the departing employee in their transition.

Don’t:

  • Offer insincere or exaggerated praise. Be genuine in your expressions of gratitude to maintain credibility and respect.
  • Downplay achievements or minimize the employee’s contributions to the company. Recognize their efforts even if the termination is based on performance issues.

HR Tips:

You can offer the fired employees a reference for future employers. Of course, don’t do it if you see that the person is a poor fit for that specific type of job or if that can damage your reputation in any other way.

Think about other ways to cushion the effect – for example, offer a severance package if your company’s financial resources allow that.

6. Inform Your Team

Letting other employees know what happened is as important as having a respectful and compassionate conversation with the fired employees themselves.

Tell the truth and be as clear as possible about what happened without sharing confidential information.

Do:

  • Inform the team about the departure as soon as possible after the decision has been made. Delaying this communication can lead to rumors and speculation, causing unnecessary stress and uncertainty among team members.
  • Shift the focus of the conversation towards the future and how the team will move forward after the departure. Highlight any changes in responsibilities or upcoming plans to reassure the team about continuity and stability.
  • Encourage team members to ask questions and express their concerns about the departure. Addressing these concerns openly can help alleviate any fears or uncertainties within the team.
  • Offer support to team members who may be affected by the departure. This could include additional training, resources, or counseling to help them cope with the changes in the team dynamic.

Don’t:

  • Withhold information about the departure or provide vague explanations that leave team members confused or suspicious.
  • Overlook the emotional impact of the departure on the team. Acknowledge their feelings and concerns during the communication to demonstrate empathy and understanding.

HR Tips:
Keep in mind that team members can stay in touch with their former coworkers, so do your best to make sure your versions of firing don’t contradict each other.

Organize team-building activities or opportunities for open dialogue to help rebuild trust and cohesion within the team following a departure.

Summary

Firing is a hard and stressful process for everyone involved, but it can be managed in an ethical way. Being clear when articulating the reasons and using the matter-of-fact approach is key: focusing on logistics and processes within the team and making it clear that there’s nothing personal in this decision allows to maintain healthy environment on the team and end the relationship with the terminated employee on good terms.

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