Ep. 40 - Navigating Employee Termination with Honesty and Kindness
- Chad Lingafelt
- Jul 24
- 2 min read
Employee termination is arguably one of the most challenging aspects of business ownership. It's emotionally taxing for everyone involved, yet a necessary component of maintaining a healthy, high-performing organization. In a recent "Unlocked" podcast episode, hosts Lars from Calgary Lock & Safe in Alberta, Tony from Assured Security in Minnesota, and Chad from Loc-Doc Security in Charlotte, NC, candidly discussed the process, philosophies, and communication strategies around letting employees go.
The "No Surprises" Rule and Measurable Feedback
A central tenet, inspired by Dave Ramsey's "EntreLeadership" philosophy, is that an employee should never be surprised by a termination. This requires consistent one-on-one meetings where managers actively listen to the "why" behind performance issues and provide
specific, measurable goals for improvement (e.g., "increase billable hours from X to Y" rather than "get better"). Documenting these conversations, perhaps even leveraging AI tools like ChatGPT for summaries, can prevent misunderstandings and provide a clear record.
The "Donkey" Dilemma and Tough Decisions
A common pitfall for business owners is holding onto underperformers—or "donkeys," as Ramsey calls them—for too long. The hosts noted that owners often "care too much" about the individual impact, overlooking that prolonged poor performance alienates good employees and wastes time and resources for both the company and the struggling employee. Lars shared his realization that it can be a "favor" to both sides to part ways if someone isn't thriving in their role. Making quick decisions is preferable to slow, drawn-out processes.
Courageous Honesty Meets Outrageous Kindness
Your company's values of "Courageous Honesty" and "Outrageous Kindness" are vital here. Terminations demand direct, clear communication (courageous honesty) balanced with empathy and respect (outrageous kindness). The goal is to address the performance issue or core value misalignment directly while treating the individual with dignity.
Communicating to the Team (Under 50 Employees / "No Gossip" Policy)
In a smaller company with a "No Gossip" policy (defined as discussing things people can't change), internal communication about a termination needs to be swift, concise, and professional. Promptness: Inform the team as soon as the terminated individual has left.
Concise Messaging: Use a brief, standardized script. Focus on the future and business continuity, not the "why" of the termination. Examples include: "This person is no longer with the company. We wish them the best." or "It was a performance-related decision/core value alignment issue, and we've decided to part ways."
Reinforce No Gossip: Gently remind the team about respecting privacy and focusing on actionable discussions.
Address Practicalities: Clearly state who will take over responsibilities to minimize disruption and anxiety.
While difficult, mastering the art of thoughtful, decisive, and respectful terminations is crucial for fostering a positive culture and ensuring your business is staffed by "thoroughbreds" committed to its success.
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