And 5 Steps to Take If You Do
Leadership Framework for Founders
Rachel Turner is a leadership coach and talent advisor who works with venture-backed startups. This framework ensures leaders conduct proper due diligence before making termination decisions.
Firing someone is one of the most consequential decisions a leader makes. Done poorly, it can expose the company to legal risk, damage team morale, and haunt you with regret. Done right, after proper due diligence, it protects the team, the company, and even the departing employee from a prolonged mismatch.
According to Society for Human Resource Management (SHRM), the average cost of a bad hire is 30% of the employee's first-year earnings. But wrongful termination lawsuits can cost far more, both financially and reputationally. This checklist protects everyone involved.
Before making a termination decision, honestly answer each of these questions. If you answer "No" to several, you may need to invest more effort before considering firing.
If you've answered "Yes" to most questions and termination is the right decision, follow these steps:
Review all documentation and plan the conversation. Have HR present if possible. Prepare answers to likely questions. Choose a private location and appropriate time (not Friday afternoon).
Deliver the news clearly within the first 30 seconds. Don't bury the lead with small talk. Be kind but firm, excessive apologizing or explanation can make it worse.
Allow them to express their thoughts and feelings. Don't argue or get defensive. Acknowledge their contributions and the difficulty of the situation.
Cover practical matters: final paycheck, benefits continuation (COBRA), return of equipment, severance terms, references. Provide everything in writing.
Offer assistance with job search if appropriate (outplacement services, references, networking). Communicate appropriately with the team, respect privacy while being honest.
Firing is a last resort. Ensure due diligence before making the decision. If you've answered "No" to several of these questions, you may need to invest more in coaching, feedback, or role adjustment before considering termination. When firing is necessary, do it with dignity and professionalism. How you fire someone says as much about you as a leader as how you hire them.