My Founding Hire has Gone Wrong, How do I Get Them out of The Business

A man with a beard wearing a gray shirt
Mark Ridgeon
April 14, 2024
5 min read
Loading the Elevenlabs Text to Speech AudioNative Player...
My Founding Hire has Gone Wrong, How do I Get Them out of The Business

My Founding Hire Has Gone Wrong: A Comprehensive Guide to Removing a Problematic Employee

Introduction

Hiring the right people is crucial for the success of any business, especially in the early stages. However, sometimes even the most promising hires can turn out to be a poor fit for the company. If you find yourself in the unfortunate position of having made a founding hire that has gone wrong, it is essential to address the situation promptly and effectively. This article will provide you with a comprehensive guide on how to remove a problematic employee from your business, while minimising disruption and protecting your company's interests.

Step 1: Assess the Situation

Before taking any action, it is crucial to thoroughly assess the situation and gather evidence to support your decision. This includes:

  • Documenting performance issues: Keep a record of specific instances where the employee has failed to meet expectations, including dates, times, and specific examples.
  • Consulting with other team members: Seek feedback from other employees who have worked closely with the problematic employee. This will provide you with a broader perspective and help you determine if the issues are isolated or systemic.
  • Considering the potential impact: Evaluate the potential consequences of removing the employee, such as disruption to operations, loss of key skills, or damage to the company's reputation.

Step 2: Communicate with the Employee

Once you have gathered sufficient evidence, it is time to communicate your decision to the employee. This should be done in a private and professional manner, following these guidelines:

  • Be clear and direct: State the reasons for your decision in a straightforward and unambiguous way. Avoid using vague or general terms.
  • Provide specific examples: Refer to the documented performance issues and provide specific instances of where the employee has fallen short.
  • Listen to their perspective: Give the employee an opportunity to explain their side of the story and provide any mitigating circumstances.
  • Be empathetic but firm: Acknowledge the employee's feelings while remaining resolute in your decision.

Step 3: Negotiate an Exit Plan

Once the employee has been informed of your decision, it is important to negotiate an exit plan that is fair and mutually acceptable. This may include:

  • Severance package: Consider offering a severance package that is commensurate with the employee's length of service and contributions to the company.
  • Non-compete agreement: If necessary, negotiate a non-compete agreement to protect your company's confidential information and prevent the employee from competing with you in the future.
  • Reference letter: Decide whether you are willing to provide a reference letter for the employee. If so, be honest and accurate in your assessment of their performance.

Step 4: Prepare for the Transition

Once the exit plan has been agreed upon, it is essential to prepare for the transition. This includes:

  • Announcing the departure: Inform the team of the employee's departure and explain the reasons in a clear and concise manner.
  • Reassigning responsibilities: Identify other employees who can take over the problematic employee's responsibilities and ensure a smooth handover.
  • Providing support: Offer support to the team as they adjust to the change and address any concerns or questions they may have.

Step 5: Protect Your Company

In addition to the above steps, it is important to take measures to protect your company's interests:

  • Secure company property: Collect any company property, such as laptops, phones, and documents, from the employee before they leave.
  • Change passwords: Change all passwords to company accounts and systems that the employee had access to.
  • Review confidential information: Check for any signs of confidential information being compromised or removed from the company.

Step 6: Learn from the Experience

Once the employee has been removed, it is important to take time to reflect on the situation and identify any lessons that can be learned. This may include:

  • Improving the hiring process: Review your hiring process and identify any areas where it can be improved to avoid similar mistakes in the future.
  • Providing better onboarding: Enhance your onboarding process to provide new hires with a clear understanding of their roles and expectations.
  • Establishing clear performance standards: Define clear performance standards for all employees and provide regular feedback to ensure they are meeting expectations.

Conclusion

Removing a problematic founding hire can be a challenging and disruptive experience. However, by following the steps outlined in this article, you can minimise the impact on your business and protect your company's interests. Remember to approach the situation with professionalism, empathy, and a commitment to finding a fair and mutually acceptable solution. By learning from the experience and implementing improvements to your hiring and onboarding processes, you can reduce the likelihood of similar issues arising in the future.

My Founding Hire has Gone Wrong, How do I Get Them out of The Business
A man with a beard wearing a gray shirt
Mark Ridgeon
March 30, 2024
5 min read
Latest Resources

Our latest posts

Strategies for Optimising Your SaaS Sales Funnel

Optimising the SaaS sales funnel is essential for growth. Focus on content marketing, personalised engagement, proving product value, seamless onboarding, and building long-term customer relationships.

Read post

Effective Leadership Practices for Startup Growth

Effective leadership for startup growth involves setting a clear vision, building strong foundations, fostering innovation, creating high-performing teams, and maintaining a customer-centric approach.

Read post

Navigating Legal Due Diligence for Startups

Successfully running a startup requires navigating legal requirements diligently. This article outlines essential due diligence aspects, including financial, operational, and legal evaluations.

Read post
Stop being the bottleneck in your own business. Reclaim strategic focus whilst building operations that scale.

Schedule a call with Mark to discuss your requirements.

Let's talk
5 golden stars horizontally aligned
“I have used many consultants in the past and have had some decent results. However, with Mark, things are just clearer, better, and he actually does a lot of the work rather than just tell me it needs to be done.”
An image of Ashley Beatens a man close up with a beard.
Ashley Beatens
ClimateWorks

Why scaling founders choose me over other fractional COOs

I specialise exclusively in operational transformation for £1M-£20M businesses. Whilst others offer generic consulting, I deliver measurable operational improvements that let founders reclaim strategic focus whilst building scalable growth engines.

Previous clients consistently achieve 40% efficiency gains within 90 days.
A simple black tick on a blue circle.

Execution

You can count on me to provide you with task completion estimates, not just leaving you hanging with a report.
A simple black tick on a blue circle.

Team Accountability

Transform dependency into self-sufficient teams.
A simple black tick on a blue circle.

Growth Stage Focus

Specialised in £1M-£20M operational challenges.
A simple black tick on a blue circle.

Real-Time Support

You will always have real-time communication with me via Slack and are supported at all times.
A simple black tick on a blue circle.

Operational Systems

I build processes that work without you.
A simple black tick on a blue circle.

Scaling Methodology

Proven frameworks for sustainable growth.
A simple black tick on a blue circle.

Data-Driven Results

Track improvements with clear metrics.
A simple black tick on a blue circle.

Flexible Partnership

Month-to-month engagement that scales with you.

Proven process for operational transformation

From chaos to scalable growth in 90 days.
01
02
03
04

Operational Assessment

Free 60-minute deep-dive to identify your specific scaling bottlenecks and growth barriers.

Strategic Partnership

We design your custom operational roadmap with clear metrics, timelines, and accountability systems.

Hands-On Execution

I integrate with your team via Slack and weekly sessions, implementing systems that actually work.

Measurable Results

40% efficiency gains, reduced founder dependency, scalable operations.