Dr. McElroy’s practice team. It took time, but over the years, Dr. McElroy (second from right, back row, as you look at photo) learned how to better manage employee terminations.
Employee termination best practices
By Ted A. McElroy, OD
Feb. 19, 2025
Terminating an employee is one of the least pleasant experiences as a business owner. Yet, if you’re in business long enough, it’s unavoidable.
Over my 31.5 years in leadership, I learned to handle the termination process better. I had my share of missteps over the years. Truth be told, this stuff sucks. (I apologize, Mom. Sometimes other words just don’t work.)
Here is what I learned about terminating an employee as kindly as possible, while also protecting your practice.
Be Respectful & Direct
Termination of a teammate requires respect, dignity and directness. It should be done as quickly as possible after you determine that the employee is not a good fit for your practice.
Handling termination in a timely manner is not just important for you and the teammate being fired, but also for the team remaining after the event.
Keeping Emotions in Check
What have I found to be the hardest part of firing an employee? Keeping my emotions in check. This is not easy for anyone involved. You have to be courageous to do this.
Thankfully, I have only had to terminate seven employees in my career so far. However, I remember each one vividly. I was always scared going into it, reminding myself, “This is not going to be easy. You both will get through this. This is a defining moment for them and your company.”
Learning from Past Mistakes
Without naming names, I can share that the times it didn’t go well were when I lacked the courage to do the right thing at the right time.
I thought it would be easier for everyone if I gave them the opportunity to resign instead of being let go. This mindset often stems from conflict avoidance and a weakness of character as a leader. I made the lives of those individuals worse in their final days with us, and it affected my team and me. It would have been much kinder to handle things differently.
Another mistake I made was assuming that employees should just know what they were doing wrong. Expecting someone to read my mind is not only unrealistic, but cruel.
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When I finally acted out of frustration, it left them with little warning and security, creating a shameful situation for everyone involved. The trust lost with the individual and my team was difficult to recover, and I lost trust in myself for not behaving courageously.
My Current Process for Termination
Over the years, I refined my process for firing employees. There are two primary reasons for termination: conduct issues and performance issues. Conduct issues, such as theft or breach of confidentiality, must be dealt with immediately. My organization deserves it, and my teammates expect it of me.
For performance issues, I take responsibility for acknowledging shortcomings and coaching the correct steps for improvement.
If those steps are not met, I must decide whether to dismiss the teammate or find a better fit for them within the organization.
I implement a clear process for improvement, including timelines and regular check-ins. Documentation is crucial; if it’s not written down, it didn’t happen.
The Importance of Direct Communication
When it’s time to let someone go, I want to avoid future regret about how I handled the situation. I prepare my talking points in advance, keeping them direct and concise.
I say, “The purpose of our meeting today is to formally let you know of your dismissal. It is for [this reason] you are being dismissed. We both did X [fill in steps you and the employee took] to make sure you had a fair opportunity to improve this. To allow you to continue is not good for any of us, including you.”
After the meeting, I have a structured off-boarding process, including returning company property and signing a separation notice. This ensures clarity and respect for everyone involved.
Managing Legal & Financial Risks
While I don’t want legal concerns to dominate my decision-making, they are a reality. Consulting with a labor specialist or human resources consultant is essential.
In Georgia, where I practice, for example, I need to consider the implications of unemployment benefits. The cost of letting a subpar employee stay on is often much higher than the cost of termination.
Maintaining Team Morale
After a termination, I communicate with my team as soon as possible. I do this in-person, allowing them to ask questions and understand the reasons behind the separation. The biggest morale killer is allowing issues to fester without resolution, hoping they will work themselves out.
Handling Well-Liked Employees
I have fired well-liked employees. However, I did so with the understanding that their behavior was not aligned with our team’s values.
After their departure, they found success elsewhere, and I still see them in our small community. The respect and directness in addressing their conduct allowed for healing and understanding.
The Importance of Accountability
I believe in giving employees a chance to improve, but I also recognize that avoiding consequences can hinder their growth. If they resign, they may avoid facing the reality of their performance. I found that subpar employees often try to draw out their employment, but I address these situations directly and quickly.
Turning Challenges into Learning Opportunities
I had successful turnarounds, but they often depend more on the employee’s willingness to learn than on my coaching. I strive to create an environment where mistakes can be learning experiences for the entire team.
The Emotional Toll of Termination
This process takes a toll on me as a leader. It requires courage, and I often feel fear. Having my talking points written down is crucial.
Afterward, I take time to grieve the loss. I reflect on my leadership and what I could have done differently. Vulnerability is a superpower for leaders; we must show our teammates that we are not superhuman.
Bottom Line: Create a Path Forward
Termination is never easy, but with respect, dignity and directness, we can navigate this challenging aspect of leadership.
By focusing on clear communication, accountability, and learning opportunities, we can foster a healthier work environment for everyone involved.
Ted A. McElroy, OD, is the owner of Vision Source Tifton in Tifton, Ga. To contact him: tmcelroy@visionsource.com
