Terminating an Employee: A Checklist

The decision to terminate an underperforming employee is a difficult one, even for the most seasoned nonprofit leader.

To ensure that you’re making the right decision — and treating the affected employee compassionately — take the following steps:

Before the termination meeting

• Partner with a human resources expert, who is subject to complete confidentiality, to discuss each of the below items.

• Seek out legal counsel and expertise.

• Be clear on the possible reasons for termination.

• Understand and explore how the reasons will shape the approach to the action and effects.

• Ensure all other options have been exhausted and that termination is the only remaining effective decision.

• Determine the risks to the organization of terminating the employee(s) and not terminating the employee(s). Establish the plan for mitigating the effects of those risks.

• Identify any employee issues, including any complaints the employee may have made, any relevant protected status, or other considerations. Determine with human resources and legal counsel the effects of those issues and how they may be addressed.

• Ensure critical stakeholders are onboard with the decision.

• Consider the effects the termination may have on employees and the organization as a whole, and plan for what communication and support will be needed.

• Create a communication plan about the departure (and any additional context that may be needed for actions such as reorganization or program changes) to enact both internally and externally.

• With human resources and/or legal counsel, review all documentation and rationale leading to the termination decision.

• Determine the parts of the severance package: pay, nature and length of outplacement services, and any other payment or consideration.

• Secure career and transition counseling, often called “outplacement services”, if you plan to offer this support.

• Script and practice the conversation.

  • Include: the termination message itself, benefits and payroll information, the severance package, and departure and timeline information, including how long the employee will have to deal with belongings and good-byes, as well as the return of organization property.

  • Don’t include: advice, small talk, blame for the decision, critique, or accusations

• Prepare for the final paycheck, which should include regular pay and any unused, accrued vacation. In many cases, this must be paid immediately upon termination.

• Prepare the termination letter, severance package and agreement, which should include the termination date, severance pay amount, outplacement information, waiver of legal action (upon acceptance), and any other benefits or payments.

• Ensure legal review of all documents and the script.

• Determine the appropriate process for the actual termination, including who will be in the room, and where and when it will take place.

• Inform critical stakeholders about the process and timing.

• Rehearse the script.

• Prepare yourself mentally and emotionally for the conversation.

During the termination meeting

• Deliver the message and the written agreement, ensuring it has been received and that all other logistics — including departure and return of organization equipment — go as planned.

  • Be sympathetic, kind, compassionate, supportive, professional, calm, and firm.

  • Don’t be apologetic, visibly upset, argumentative, critical, or overly cheerful, even in an attempt to lighten the mood.

After the termination meeting

• Ensure receipt of the signed severance agreement in the time frame indicated.

• Ensure the severance payment is made and that outplacement service is notified and ready to go, if applicable.

• Communicate to the organization (or relevant parts) as planned.

• Communicate to external stakeholders as planned.

• Support those who may need help during the transition.

• Refocus the organization onto work, mission and future.

• Take the pulse of the organization to determine effects and focus.

• Be available for ongoing support of employees.

Pratichi Shah is founder and chief executive of Flourish Talent Management Solutions, a company that helps charities and foundations with talent-strategy development, strategy and culture alignment, training, and coaching for executives and emerging leaders. Shah has more than 20 years of experience in talent management, including as chief talent officer for Independent Sector.