How Do You Know When It’s Time to Let Someone Go?

If you’ve ever wrestled with the question, “Should I let this person go?” You are not alone. Every small employer struggles with it. 

Firing someone feels personal, especially in smaller teams where everyone wears multiple hats. You might worry about morale, guilt, or finding someone new. So, you hang on a little longer, hoping things will turn around.

But sometimes, holding on too long costs more than letting go.

Here are a few simple ways to tell when it’s time to stop trying to fix it and start making a change.

1. The Employee Is No Longer Meeting Today’s Expectations

Sometimes a role evolves faster than the person in it. That doesn’t make them a bad employee; it just means the business has outgrown what they can offer.

Ask yourself:

• Are they still meeting the needs of the business as it is today, not as it was when they started?

• Are they keeping up with the pace and quality your team now requires?

• Do you find yourself or others frequently covering their responsibilities?

If you’ve already coached, clarified, and re-trained — and performance still hasn’t improved — it’s a sign you may be trying to fit a square peg into a round hole.

2. The Behavior Is Hurting the Team

You can train for skill gaps. You can’t train someone to care, communicate, or show respect. When an employee’s behavior consistently causes friction by interrupting meetings, refusing feedback, gossiping, or making others uncomfortable, it erodes trust and morale fast.

Before you make a decision, document what’s happening. If the behavior repeats after clear feedback and expectations, it’s not a misunderstanding anymore. It’s a choice.

And toxic behavior left unaddressed tells the rest of your team that the rules don’t apply equally.

3. You’ve Tried Everything, and You’re Out of Ideas

Most managers can tell when they’ve reached the end of the road. You’ve restructured the role, had the tough talks, adjusted workloads, provided resources, and still, nothing changes.

If you’re out of new strategies, it’s likely because the person isn’t willing or able to change. That’s when “maybe they’ll improve” turns into “they won’t.”

It’s okay to acknowledge that.

Not everyone can grow with every company and letting them go with clarity and respect is often kinder than continuing to hope for a turnaround that won’t happen.

4. You’re Keeping Them Because It’s Easier

Be honest: are you avoiding the decision because it’s uncomfortable?

Many small-business owners and HR leads hold on because:

• “They’ve been with us from the beginning.”

• “I feel bad. They have a family.”

• “I don’t have time to replace them right now.”

But while it may feel easier in the short term, it creates long-term pain. There could be resentment from other employees, uneven workloads, and declining trust in leadership.

If the main reason you’re keeping someone is guilt, fear, or convenience, it’s time to reevaluate.

5. The Rest of the Team Has Already Moved On

One of the clearest signs you’re holding on too long is when your team already knows what you’re afraid to admit.

When you hear phrases like:

“I can’t rely on them.”“We’re better off when they’re not here.”“It’s not fair that we’re all covering for them.”

Your team is telling you it’s time.When trust is gone, it’s almost impossible to rebuild within the same dynamic.

Letting someone go is never easy, but it can be done the right way. In HR, our responsibility isn’t just to manage compliance; it’s to ensure every exit is handled with compassion and respect.

A termination should be both lawful and humane. Be clear. Be direct. Be kind. Offer honesty instead of platitudes, and create space for the person to leave with dignity intact.

Ending employment isn’t just closing a chapter; it’s often the moment when both the organization and the individual finally have room to grow.

Want help making that call?

Check out our expert-level podcast, “Is It Time to Fire Them?”. In this episode, we break down how to make tough employee decisions legally, ethically, and with confidence.