How to Terminate an Employee and Maintain Their Dignity

Running a business isn’t all sunshine and rainbows. Sometimes, it requires you to make challenging calls, like firing an employee who isn’t a good fit. No one wants to share bad news, but it’s part of the gig whether we like it or not. 🤔

If you’re in this situation, you may wonder how to terminate an employee with dignity. What is that conversation like, and how do you communicate this transition to your team?

To answer your burning questions, we chatted with some business leaders from the Indie Ops Network™! 💬

Press play to hear the full conversation, or read the summary below.

⚠️ Disclaimer: This discussion is NOT business advice. Please follow local laws and best business practices before beginning your offboarding process. ⚠️

Disclaimer: This post may include affiliate links that may compensate us. For details, review our terms

FAQ Section: How to Tell Someone They Are Fired

By this point, your mind may be swirling with what-if scenarios, like: 

âť“ What if they start crying?
âť“ What if they ask thousands of questions?
âť“ What if they bash our business online?

We get it! It’s a sensitive situation with multiple outcomes. However, you can lead the conversation professionally while respecting the other party. Let’s start with etiquette.

What Are Some Acceptable Ways to Terminate a Team Member? 

Rather than beating around the bush, be straightforward and approach the conversation with honesty. Provide a reason for your decision and acknowledge their time and hard work. 

It’s essential to be empathetic and avoid the following:

❌ Pointing fingers or playing the blame game
❌ Humiliating the team member in front of others
❌ Offering false hope about their role
❌ Getting defensive about your final decision 

How Do You Fire an Employee Right After Hiring Them?

The last thing you want to do after hiring a new employee is let them go. But if you’re in this boat, here are some steps to guide this transition:

    • Schedule a meeting with the staff member
    • Have a transparent conversation about the termination 
    • Explain the next steps in the process, like severance pay and benefits

You can also schedule a follow-up to answer questions and support their offboarding process.

Examples of What to Say When Firing an Employee 

Want to avoid tripping over your words and awkward silences? Consider creating a bullet list to help you stay on topic. A simple outline can calm the jitters and allow you to maintain your composure. Think of your notes like a map, providing direction for your discussions:

🧭 Acknowledge what the employee worked on
🧭 Express appreciation for their dedication toward your business goals
🧭 Explain the reason for the meeting 
🧭 Describe why you’ve come to this decision 
🧭 Clarify the offboarding timeline and next steps 

🧠 Keep in mind: This announcement may surprise them, so allow them time to absorb the information and articulate their thoughts. Be kind with your responses.

Now that you have a brief understanding of how to terminate an employee, let’s dive into our chat with Indie Ops Network™ members Ellen and Simon.

An Insightful Chat With Operators: When to Fire an Employee (01:30)

There’s no such thing as a good time to fire someone. In fact, you may prefer to push the meeting to the back burner, but our guests have a different opinion. 💭 

Simon, an online marketing and automation leader, admits that waiting to finalize the decision has impacted this business. Instead, he recommends using your best judgment early on and preparing for the transition. 

While this seems logical, it’s much harder to put it into practice. So, how do you ensure you don’t delay the decision? ⏸

In the past, Simon has prioritized empathy over his business goals. Empathy is crucial for the conversation, but putting your company first is essential, too.

Ellen, co-owner of Pet Harmony Animal Behavior and Training, adds that her team tries to make data-driven decisions. She ensures everyone has a fair chance and collects information to see if staff members are on track with their milestones.

She also evaluates employee performance. If something seems off with communication or a team member consistently misses deadlines, it’s time to assess what’s changed. 🔎 

How to Terminate an Employee Gracefully (04:24)

These points seem reasonable, but how do you approach the conversation with compassion? According to Simon and Ellen, you should never draw it out. Once you begin the meeting, get straight to the point. Here, you can explain the purpose of the termination.  

🎬 Still nervous about what to say? Fast forward to timestamp (05:41) for an example. Be sure to modify your language to accommodate the situation.   

Free Resource

Get Your Free Operations Audit Today

Evaluate your team's efficiency, assess bottlenecks inside your business systems, and discover simple solutions to improve them within 10 minutes. 

How to Announce an Employee Termination to Your Team (07:06)

Once you bypass the first hurdle, it’s time to communicate the change with the rest of your team. Feeling anxious about your crew’s reaction is normal, but Ellen says your communication ties back to your work culture. 🤝 

It’s less about reporting serious news and more about cultivating an environment where you can be open and transparent when changes occur in the business. 

🛑 Reminder to our readers: This post and YouTube video aren’t a replacement for financial, legal, or HR consultation. Please research and follow your local laws. Now, let’s get back to the summary! 

Simon agrees with Ellen’s point about developing an open work culture from the very beginning. One way to promote transparency in your business is to schedule quarterly meetings with your team. These sessions allow people to share how they’re doing professionally and personally. 

In addition, make sure to discuss relevant information without causing panic, give your staff time to absorb the news, and create a game plan for the transition. 

đź’¬ Love this candid discussion? This chat is from our Indie Ops Network™, a virtual community built for small team operators. If you’re interested in participating in our monthly Process Improvement Plans (PIPs) and watching full-length interviews like this, apply today!

Compassion Is Key: How to Terminate an Employee

Firing someone will never be easy, but if you lead with empathy and compassion, you can let people go with dignity.

In this post, we covered:

âś… Acceptable and unacceptable ways to share the news
âś… How to prepare for the discussion
âś… When to fire an employee
âś… How to terminate an employee gracefully
âś… How to tell your team

Do you have more questions, like how to hire a new candidate? Check out our extensive library to help you with the hiring and onboarding process. 

Thank you to our guests, Simon and Ellen, for your insight. You can learn more about them below! 👇

👋 Simon Ihlenfeldt: Leads an agency that focuses on automating and processing for online marketing agencies in Germany. 
👋 Ellen Yoakum: Co-owner of Pet Harmony Animal Behavior and Training. She works with pets and their owners so they can live harmoniously together. 

If you require more support with your daily operations, say no more! Join the waitlist for our signature program, ProcessDriven Foundations™, to help you systemize your business by fixing bad habits hiding inside your work management software. 

Thanks for reading, and enjoy the process!

ProcessDriven - Turn Chaos into Process
Home | View More Posts

ProcessDriven helps small teams turn chaos into process. The ProcessDriven Approach™️ combines software expertise with practical process-first strategies that have helped 1,800+ teams build a scalable foundation of business systems.