Employee Termination With Grace: How to Do So Without Burning Bridges
When you first started your business, were you dreaming about terminating employees? Probably not, but sooner or later, most leaders face it. There are hundreds of reasons that a termination may be necessary. Even though termination isn’t a failure of leadership, how it’s handled reflects it. When done poorly, it creates fear, legal risk, and lingering resentment. When done well, it preserves the dignity of the terminated employee, protects the business, and reinforces trust among the remaining team.
Letting someone go will never be a fun part of running your own business, but it can be done with clarity, professionalism, and yes, even grace.
Where Terminations Go Wrong
We see the same missteps time and time again:
- Avoiding the conversation until the situation becomes explosive
- Giving vague feedback that leaves the employee confused or blindsided
- Talking too much or too little in the actual termination meeting
- Letting emotions drive the tone
- Not realizing that the rest of the team is observing how this is handled
On paper, the decision may be justified. In practice? Poor execution can unravel morale and expose unnecessary risk. Don’t be the next story on the 5 o’clock news.
A Better Approach: Clear, Human, and Prepared
Grace doesn’t mean being soft. It means being intentional. Terminations should never be a surprise. Clear expectations, documented feedback, and opportunities to correct the matter(s), are all steps that can be taken every day. Be direct and respectful, as this is not the time for long explanations or debates. State the decision clearly, briefly explain why, share any documentation, and avoid blaming or character judgments.
It’s important to lead with dignity. Be in a private setting and use a calm tone with no unnecessary audience. You don’t want to drag it out, but you also don’t want to rush. This moment matters more than you think.
Make sure the logistics of final pay, benefits information, and next steps are already in place. When leaders fumble here, it adds stress to an already difficult moment. A crucial part of keeping the remaining team engaged is to communicate thoughtfully with them. While you don’t need to share details, you do need to reinforce values, stability, and respect. Silence breeds stories and distrust.
Why Grace Is a Business Strategy
Termination conversations don’t just impact the person leaving. They shape your culture. Handled well, they send a powerful message. If the termination is unexpected, those remaining may need reassurance about their own roles and the direction of the company. One-on-one conversations, team check-ins, or company-wide resources can offer a boost in morale and lessen disengagement.
When your remaining employees see compassion paired with clarity, it reassures them that leadership is not only making tough decisions but also standing by the people who make the organization possible. Ultimately, this careful balance of empathy and communication strengthens your culture in ways that will outlast any single transition.
The Bottom Line
Termination with grace isn’t about taking the soft approach; it’s about being strategic with decisions and how they are communicated and documented. Because sometimes, how you end a working relationship often speaks louder than how it began.
We would like to thank contributing author, Emily Owensby of Thread for writing this article.
Over the past several months, I’ve found myself asking a new set of questions around what is next for Blazej Accounting.
Like many of you, we are no longer in the “just make it through the year” phase. We are thinking carefully about how we scale, innovate, and develop leaders for what’s ahead.
In this month’s article, I’m sharing our thoughts on key areas shaping our next chapter.
Insights for Growing Businesses: Looking to the Next Five Years
Cheryl Blazej
Have a question or need a referral to another professional?
Contact Cheryl at cheryl.blazej@blazejaccounting.com