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Your Go-to Guide to Terminating an Employee

Feb 17, 2023 • 6 min read

Firing an employee is one of the most difficult things to do as a business owner as your employees often become a big part of your team and life and it’s hard not to empathize with them. However, sometimes you’ve got to make some really hard decisions to protect your company’s interests, as well as your other employees, and in some cases, termination can be the best way to do this.

Termination is a final resort after you’ve tried verbal warnings, mediation, written warnings, and consultations. Some of the things that can be cause for termination include irregular attendance, theft, sexual harassment, physical or verbal altercations, incompetence, and an inability to comply with company policies and regulations. So how do you fire an employee? We’ve put together 5 steps for you to follow in your termination process to make sure it is fair, effective, and professional.

Step 1: Keep track of everything with documentation

When dismissing an employee, you need to make sure they don’t feel blindsided and that this is something that’s been a long time coming. You and your HR team need to consistently keep track of attendance using timesheets, have regular performance reviews, and make sure that any verbal or written warnings that were issued have been documented so you have proof and cause for the termination. It is essential that employee behavior, productivity, and compliance are all tracked by management in order to identify any deviant behaviors that need intervention.

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Step 2: Have your paperwork and termination document ready

When moving ahead with the employee termination, you need to make sure you’re well prepared with all the documentation and paperwork you need. It’s important to have your backing documentation present like performance reviews, written warnings, incomplete timesheets, formal complaints, etc. The last document you need to prepare is a formal termination letter which states the reason for the termination (this can be used as a guide on what to say when firing an employee), it also includes final payment and benefits information, as well as a few kind words at the end to thank your employee for their service and wish them well with their future endeavors.

Step 3: Schedule a one-on-one meeting (either video call or in-office)

The best way to terminate an employee is to have a one-on-one discussion with them in a private environment. It’s important to be direct and to the point during the discussion to avoid heightening anxiety and dragging it out (try to keep these meetings under 30 minutes). Explain the reasons for the termination and all essential aspects that need to be covered (policy, pay, etc.). Thereafter, give the terminated employee a chance to express what they have to say and actively listen. You’ve got to try to find a good balance between being firm and empathetic. Most importantly, you need to make sure this discussion is CLEAR, and the employee understands that this is a final termination that cannot be changed. You can end off the session on a positive note with good wishes and a handshake.

Dos and Don’ts during a termination meeting

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Step 4: What to say when firing an employee

While termination is a negative experience for both you and your employee it’s important to remember to keep the experience professional while maintaining your employee’s dignity. The saying “it’s not what you say but how you say it” is a good thing to keep in mind during this process. If you’re unsure of what to say, we’ve created a termination example script you can follow:

“Hi {Insert First Name}, unfortunately, this will be your last day with us at {Insert Company Name}. You have already received several written and verbal warnings concerning your performance and not being able to meet your monthly targets. We have tried intervention and attempted to reconcile but we think it is best for both of us if we end our professional relationship here. Please take some time to review the termination document, I’m happy to answer any questions you may have. We will proceed to the exit interview after this. We’d just like to say thank you for being part of our team and wish you all the best with your future endeavors.”

Remember that your tone and body language play a big role in your delivery. Try to keep a formal and confident tone and maintain eye contact throughout.

Step 5: Conduct an exit interview

This step is usually conducted by the HR team but if you don’t have an HR team, you can make use of an HR Tech platform like DigiWorks to take this off your hands. DigiWorks will prepare and conduct exit interviews and send you a detailed report of the process afterward. DigiWorks actually takes care of every step in the termination process. They conduct weekly check-ins with candidates from the platform to ensure they are productive, compliant with your company’s policy, and are a solid team player. If this is not the case, the DigiWorks HR team tries intervention and mediation. And if all this fails, they conduct a professional and efficient termination meeting, exit interview, and all the documentation that comes with this process.

But if you’d prefer to go it alone with the exit interview, this is what you need to know:

An exit interview is a good way for you to get feedback from your former employee and HR usually oversees this process to make sure it is unbiased. Having your exiting employee complete a written survey is a good way to make them feel comfortable and provide open and honest feedback. Create a list of questions for your employee like: Do you have any thoughts to share about your direct manager? What do you think the company is doing right? What do you think the company is doing wrong? Overall, an exit interview should be open, honest, and comfortable for your former employee.

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Conclusion

Firing an employee is a very difficult thing to do but you have to remember that you’re doing it for a reason and for the benefit of your company and other employees. According to the Harvard Business Review, employees are often relieved when the underperformers/problematic team members are fired. Following these five steps will make this process a lot easier for you and filling out the checklist below will ensure you’ve covered all the essential bits while remaining fair and respectful.

Checklist

  • I have documented proof for termination
  • I have drafted a termination letter
  • I have tried mediation and interventions
  • I have issued both verbal and written warnings
  • I am not making use of any wrongful termination based on race, gender, age, etc.
  • I have scheduled a private one-on-one meeting
  • I reviewed the example script
  • My language was confident, compassionate, and respectful
  • I scheduled an exit interview
  • I ended the meeting with good wishes and a handshake

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