Is Firing An Employee the Last Resort? A Leadership Perspective

Firing an employee is often one of the most difficult decisions a true leader can make. The termination of employment not only disrupts the life and family of the employee involved but also affects the morale and dynamics of the rest of the team in that very organisation. However, leaders are often faced with situations where firing appears to be the only viable solution to address persistent challenges, at least the finance gurus think this way. But should it always be the final resort? What can leaders do to handle such situations with foresight?

From a leadership perspective, firing an employee should indeed be considered as the very last resort and an unavoidable decision — but achieving this requires a structured approach to addressing the real issues, i.e. prudent hiring practices, thoughtful recruitment, providing post-hiring support, and fostering growth before arriving at such a critical decision.

Let’s explore why firing should not be taken lightly and the strategies leaders can use to avoid reaching this stage.

The High Stakes of Termination

Firing an employee is not just a personal setback for the individual; it has ripple effects on the organization.

1. Human Costs
   Termination impacts an employee’s livelihood, self-esteem, and career trajectory. For many, the loss of income can create financial instability, while the professional setback can lead to long-term challenges.
2. Team Dynamics
   The abrupt departure of a colleague often raises concerns among rest of the employees. Questions such as “Am I next?” or “What went wrong?” can lead to anxiety, decreased morale, and mistrust in leadership.
3. Organizational Costs
   Replacing an employee is expensive. Recruitment, onboarding, and training new hires require significant resources. Additionally, the loss of institutional knowledge/memory and the disruption to workflows can hinder productivity.

For these reasons, firing should be seen as a very very last resort and not a quick fix for addressing performance or behavioural issues.

Alternatives to Firing: a leadership view

Leadership is about creating an environment where employees can succeed. Instead of viewing firing as the only way to survive in difificult financial situations , leaders can explore strategies to address issues more constructively.

1. Clear Expectations and Feedback

One of the primary reasons for employee underperformance is a lack of clarity about expectations. Leaders must ensure that employees understand their roles, responsibilities, and performance metrics. Regular feedback — both positive and constructive — helps employees stay on track and feel supported.

When giving feedback, leaders should adopt the following approach:

1. Instead of saying, “You’re not doing well,” explain, “Your reports are missing critical data points, which affects decision-making.”
2. Address issues as they arise, rather than waiting for formal performance review cycle.
3. Highlight what the employee can do to improve and offer resources to help him/her on a regular basis.

2. Coaching & Development

Leaders besides thinking of their own growth and perks, must invest in their employees’ growth. This includes providing mentorship and L&D, opportunities to develop new skills. Coaching can be particularly effective for employees struggling with specific challenges. By identifying gaps and working collaboratively to address them, leaders can often turn underperformance around.

3. Addressing Root Causes

Sometimes, an employee’s struggles stem from external factors. Personal challenges, mental health issues, or even mismatches between their role and skills can impact performance. Leaders who take the time to understand these root causes can often find solutions that benefit both the employee and the organisation. e.g.

1. Adjusting workloads or deadlines for an employee facing burnout.
2. Offering flexible work arrangements to accommodate personal needs.
3. Reassigning tasks or projects that better align with an employee’s strengths.

4. Progressive Discipline

When issues persist despite feedback and support, leaders can implement a progressive discipline process. This involves a series of escalating steps to address concerns, such as:

1. Verbal warnings.
2. Written warnings outlining specific expectations and consequences.
3. A performance improvement plan (PIP) with SMART goals and timelines.

Progressive discipline not only gives employees a fair chance to improve but also ensures that termination, if necessary, is justified and well-documented.

Cultivating a Culture of Accountability & Growth

I firmly believe that The ultimate goal of any leader should be to create an environment where firing is rarely needed. This requires fostering a culture of accountability, continuous learning, and open communication.

1. Set a Positive Example

Leaders who demonstrate integrity, transparency, and accountability set the tone for the organisation. Employees are more likely to emulate these behaviors when they see them modeled at the top.

2. Encourage Feedback and Collaboration

A culture that encourages open dialogue allows employees to voice concerns, seek help, and offer suggestions. This can prevent small issues from escalating into major problems.

3. Recognise & Reward Employee Contributions

Acknowledging employees’ efforts and achievements motivates them to perform at their best. Recognition also reinforces desired behaviors and fosters loyalty.

Conclusion

Simon Oliver Sinek, an English-born American author and inspirational speaker on business leadership is very clear in his mind on ethical leadership contradictions when they decide to let go of their employees during difficult times. Watch his following impactful clip and decide for yourself how you would to react when you’re faced with a similar challenge at your workplace. and decide for yourself how you would to react when you’re faced with a similar challenge at your workplace.

To cut the long story short, the mark of a great leader is not how they handle termination but how they create an environment where every employee has the opportunity to succeed. By viewing firing as the last resort, leaders demonstrate their commitment to both the individual and the organization — laying the foundation for long-term success.

About the Author

Muhammad Sajwani is a C-Level HR, Transformation Leader, Board Advisor, Business Coach & Organisational Consultant and Managing Director, Evolve HR. He is an author, columnist and a contributor who besides writing for LinkedIn and Medium, also regularly writes for BizCatalyst 360 and has published around 500 articles. He brings along 30+ years of local & international experience. He is a change catalyst specialising in unleashing the human Dreamgenius through Leadership, Creativity and Change Management. Muhammad has been instrumental in helping organizations come to terms with organizational changes like right-sizing and business process re-engineering. His innovative approach & high personal competence encourages people to not only accept change, but also to excel in it. Muhammad has diverse experience in conducting strategic & management development programs, conferences & events for organisations across sectors. In recognition of his long outstanding services, Global HR Professionals — GHRP & Artificial Intelligence Community of Pakistan awarded him the “Lifetime Achievement Award” in the year 2024.