Signs That It May Be Time to Let Go of an Employee

Letting someone go is never easy, but it’s sometimes necessary to protect the health of your team. Whether the issue is performance-based, behavioral, or simply a lack of alignment, delaying the decision can create more disruption than making a thoughtful change. It’s a responsibility no leader looks forward to, especially when relationships and tenure are involved, but avoiding it can impact your culture, productivity, and team morale.

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If you do find yourself at this point, it’s important to ensure you’re proceeding carefully and legally. Employment laws vary by state, and wrongful termination, discrimination, and other claims can arise when dismissals violate contracts or protected rights. Consulting with a business lawyer can help you interpret employment agreements, avoid legal pitfalls, and confirm that your approach aligns with both local laws and internal policies.

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With that foundation in place, here are some signs it may be time to let someone go, how to handle the process thoughtfully, and how to support your team through the transition:

Common and Often Overlooked Reasons for Termination 

There are commonly understood reasons to let someone go.

• This can look like: Consistent underperformance despite a Performance Improvement Plan (PIP), breaches of confidentiality, substance misuse impacting work, dishonesty, or chronic attendance issues. 

However, some of the most damaging issues aren’t always so obvious. These behaviors might not violate policy, but they chip away at morale and productivity. 

• This can look like: Cultural misalignment, persistent negativity, refusal to collaborate, or “quiet quitting” that slowly impacts team dynamics. 

An employee may be meeting their basic job requirements, but if their actions negatively impact productively and morale, keeping an employee may not be worth it at the expense of the team’s work. Over time, this can really chip away at the overall job satisfaction and productivity of other team members. 

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Red Flags That Signal It Might Be Time 

You may not notice a single moment that signals something is wrong but small changes in behavior can add up quickly. Here are some of the common signs: 

• ‍Drop in quality or missed deadlines: Work that was once thorough and timely becomes inconsistent or careless. ‍
• Lack of participation: The employee no longer engages in meetings, avoids team conversations, or distances themselves from projects. ‍
• Ignoring feedback or requiring constant supervision: Despite ongoing check-ins and coaching, you see little to no improvement. ‍
• Signs of disengagement: More frequent callouts, turning off their camera in meetings without reason or discussion, or checking out from responsibilities altogether. 

If you’ve experienced any of these patterns, ask yourself: 

• Has this person shown a willingness to improve when coached? 
• Are their actions impacting the rest of the team? 
• Am I spending more time managing this issue than moving the team forward? 
• Has this person mentioned anything to me that might signal a change in their performance? 

Reflecting honestly can help determine whether the issue is temporary or something more serious that needs to be addressed. 

How to Address Underperformance First 

If the concerns are tied to performance, the first step should always be a direct and respectful conversation. This is especially important if the employee has been a loyal contributor in the past. They deserve the opportunity to course-correct and the structure to help them succeed.

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Start with clear feedback and offer context. An example of this could look like:

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“I’ve noticed some changes in your work over the past month, including missed deadlines and limited participation in project meetings. I want to check in with you and talk about how we can get things back on track.” 

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If your employee mentions any external factors that could be affecting their performance, such as a physical or mental medical condition, or issues with another employee, always consult with HR to ensure moving forward with a PIP is the correct move for the employee and your company. 

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From there, outline a Performance Improvement Plan (PIP). A strong PIP should include: 

• ‍Measurable goals: For example, delivering all weekly reports by Friday at noon for the next six weeks. ‍
• Regular check-ins: Weekly meetings to offer support, track progress, and reset expectations if needed. ‍
• Resources: Whether it’s pairing them with a peer mentor, adjusting their workload, or providing additional training, make sure they are supported and have the tools to succeed. 

Even if things don’t turn around, employees often appreciate the opportunity to be heard and supported. You’re not only protecting your team but you’re giving someone the respect of a clear process and a fair chance. 

When Termination Becomes Necessary 

If progress doesn’t follow, or when serious issues continue despite intervention, termination may be the right next step. Before moving forward, review all documentation and partner with HR to ensure compliance with your internal policies and employment law.

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When it comes to having this conversation, keep your message clear, respectful, and professional. Focus on what’s already been communicated. This should never be the first time the employee is learning about the issue.

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Afterward, communicate the change to your team thoughtfully. While details should stay confidential, it’s important to acknowledge the transition, affirm stability, and make space for any questions about what comes next.

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Support the Team That Stays 

When an employee is asked to leave there is a ripple effect on the rest of the team. Aside from the immediate workload shift, these transitions can stir up uncertainty, anxiety, and even fear. Team members may begin to wonder if their own roles are at risk or feel unsettled without knowing exactly what led to the departure.

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This is where thoughtful, proactive leadership becomes essential. Acknowledge the change directly while maintaining confidentiality and reassure your team that support is available. Clarify that while some transitions are necessary, each decision is made carefully, with the health of the team in mind.

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Reassign responsibilities thoughtfully and, where possible, invite input before shifting workloads. When capacity is a concern, consider bringing on a temporary employee to help manage the load quickly and ease pressure on your existing team. Temporary support can often be brought on at short notice and serve as a bridge while you search for a permanent replacement. You might also consider a temp-to-hire solution to assess long-term fit before committing to a full-time hire. Communicating clearly and checking in regularly with your team reinforces trust and helps your team feel more grounded and supported amidst this new change. 

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How to Backfill the Role Efficiently 

Once you’re ready to fill the role, working with a recruitment partner can make the process more efficient and more aligned. Backfilling a position, especially after letting someone go, comes with added pressure. Partnering with a recruitment firm like Career Group Companies can make the process feel a lot less overwhelming.

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We can support you immediately with day-of temporary talent to relieve the pressure on your current team and maintain momentum. On average, our time to fill temporary roles is just three days, not including the same-day placements we regularly handle. From there, we’ll work closely with you to understand what went wrong in the previous hire, what changes you're hoping for, and what qualities matter most in this next placement.

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Moving Forward with Confidence 

Letting someone go is never easy, but it’s often a necessary step in protecting the strength and culture of your team. When handled with care, the process creates space for new alignment, stronger communication, and long-term growth. By recognizing the signs, acting thoughtfully, and leaning on the right support systems, you can navigate these transitions with clarity. When you're ready to take the next step, we're here to help.