The Challenges of Exiting the Wrong Employees

One of the biggest surprises I've realised since I started print coaching is just how much time I spend with my clients discussing HR related issues. Running a print business isn't just about sales, marketing, finances, systems and processes. It's also about the people behind the scenes, the team that keeps the business running smoothly. However, as I am sure many of you have come to know over the years, not every hire turns out to be a good fit. When that happens, making the decision to exit an employee can be tough. I know from experience and at times have held onto staff members longer than I should have with detrimental effects but you do have to do it the right way. 

The Cost of Holding Onto the Wrong Employees

There are a number of reasons why we tend to keep an underperforming employee for too long. 

• “They’ve been here for years—I can’t just let them go.”

• “Finding and training someone new will take too much time and money.”

• “What if they take clients or other employees with them?”

These are absolutely valid concerns and I've been on the other side of all three but the cost of keeping the wrong person can be even greater. If you have a disengaged or problematic employee, they have the ability to impact team morale, slow down productivity and even impact customer relationships. 

The Wrong Exit Can Hurt Your Business

Even once you've come to terms with the fact you need to let someone go, how you handle it from here matters as much as coming to the decision itself. If you don't handle it well, it can lead to:

Legal complications – Unclear policies, a lack of documentation, or failing to follow proper termination procedures can expose your company to legal risks.

Negative team impact – If the rest of your team sees an employee being let go abruptly or unfairly, it can damage trust and create anxiety about job security.

Reputation damage – Disgruntled former employees can damage your business’s reputation through negative reviews, social media posts, or bad mouthing to other local businesses. It can also spread throughout the Industry and be suggestive that you are a bad employer.

How to Exit Employees the Right Way

If you recognise that an employee is not the right fit for your business, it’s essential to have a structured approach to their exit. Here’s how to do it properly:

1. Be Proactive, Not Reactive

Don’t wait until a situation is unbearable before addressing it. Regular performance reviews and open communication can help you determine early on if an employee is struggling or a bad fit. I always suggest that an employer meets with their staff for an appraisal every 3 months. 

2. Document Performance Issues

One of the biggest mistakes I see employers make is not keeping proper documentation. If you notice consistent underperformance or behavior issues, document them. Provide written feedback, set improvement goals, and track progress. This not only gives employees a fair chance to improve but also protects you if termination becomes necessary.

3. Communicate Clearly and Professionally

When the time comes to let someone go, approach it with respect and professionalism. Be honest but compassionate, focusing on business needs rather than personal criticism. A well-structured exit conversation should include:

• A clear reason for termination.
• Any severance or final paycheck details.
• Next steps, including how their departure will be communicated internally and externally.

4. Protect Your Business

If you’re concerned about the departing employee sharing proprietary information or poaching clients, consider using non-compete or confidentiality agreements as part of your hiring process. When letting them go, ensure you revoke access to company systems and intellectual property immediately.

5. Support the Team Afterwards

The remaining employees will take note of how you handle exits. Be transparent without oversharing, reassure them about the business’s direction, and use this as an opportunity to reinforce a strong company culture.

Getting rid of an employee is one of the toughest things I've had to endure as a business owner but as I came to learn, keeping them will definitely be more damaging. I've seen numerous instances when that wrong employee is exited, the change and uplift in a team. I came to realise that they weren't just not doing their job to the best of their ability, but the impact on their fellow colleagues was greater than I thought. Those days after exiting an employee showed me a stronger more happier team which ultimately benefited everyone, including the business. 

I have created an SOP for how to follow this process. If you would like a copy, please email [email protected]