“You’re fired!” These are words most employers don’t want to have to say. Letting an employee go is difficult, but it’s part of running a company. People come and people go. It’s the employee lifecycle. Yes, it may cost you time and money in the short term, but replacing a poor employee with a better one will pay for itself in the long run.

Letting an employee go is never an easy decision, but sometimes it’s necessary for the health of the organization and team dynamics. Executive search in Toronto often starts when someone is let go from their current role. In speaking with other recruiters and our employer partners, there are common signs present that signal it is time to move on from an employee. What are they? Below I’ve listed the top signs employers should be on the lookout for:
Here are some key signs that may indicate it’s time to part ways with an employee:
1. Consistently Poor Performance Without Signs of Improvement
One of the main reasons people are let go is for poor performance. If an employee repeatedly fails to meet performance expectations despite feedback, coaching, and training, it may indicate they are not suited for the role. Ongoing poor performance can undermine team productivity and morale, necessitating action.
2. Lack of Progress After Feedback
Constructive feedback is a valuable tool for employee development. However, if the employee shows no signs of improvement or fails to take feedback seriously after multiple discussions, it might indicate that they are not committed to growth.
3. Frequent Absenteeism
Employees need to be present to be effective. Excessive absenteeism or chronic lateness without valid reasons can disrupt team operations and indicate a lack of engagement. When an employee consistently fails to show up for work on time or regularly takes unplanned days off, it could signal deeper issues, such as a lack of motivation or commitment.
4. Negative Attitude or Toxic Behaviour
No one wants to work with unpleasant people. Employees who consistently bring a negative attitude to the workplace, engage in gossip, or create conflict can harm the team environment. Toxic behaviour, such as disrespect towards colleagues or undermining leadership, can spread negativity and diminish overall morale.
More insights: Retention vs. Replacement: Where Should Employers Invest Right Now?
5. Inability to Collaborate with Others
As they say, teamwork makes the dream work. Suppose an employee has difficulty working as part of a team, refuses to collaborate, or consistently causes friction with colleagues. In that case, it may be a sign that they are not a good cultural fit. Teamwork is often essential for success, and a lack of collaboration can hurt overall performance.
6. They are Resistant to Change
The one constant thing is change. Things are going to change. In many workplaces, adaptability is critical. If an employee is consistently resistant to change, whether it’s in response to new policies, tools, or processes, this reluctance can hinder progress and innovation within the company. Flexibility is essential in evolving environments.
7. Ethical Violations or Dishonesty
There is no room for unethical behaviour. Any breach of company ethics, such as lying, stealing, or violating trust, is a serious red flag. Ethical issues can damage a company’s reputation and cause legal or financial problems. In such cases, immediate termination may be necessary to protect the business.
8. The Employee Lacks Motivation or Engagement
If an employee appears disengaged, uninterested in their work or lacks motivation, it can negatively impact both their own productivity and that of the team. Disengaged employees may not take initiative, miss deadlines, or produce subpar work, which can harm overall performance.
Looking to hire? How to Choose the Right Recruitment Partner for Your Company
9. They Fail to Adapt or Grow in Their Role
Employees who grow will thrive. If they don’t, the company can suffer. When an employee remains stagnant in their role, especially in a rapidly changing business environment, it can be a sign that they are no longer a fit for the company’s needs. Growth and development are important for both the employee and the company; without it, the employee may no longer add value.
10. Repeated Policy Violations
Policies are in place for a reason. If an employee repeatedly violates company policies despite warnings or training, it can indicate a disregard for company rules or a lack of professionalism. Repeated infractions can disrupt operations and set a poor example for other employees.
11. They Have Poor Work Relationships with Colleagues
An employee whose work relationships have deteriorated may be struggling to fit in with the team. If conflicts with colleagues or supervisors become frequent, and efforts to resolve these issues fail, it might be a sign that their presence is no longer conducive to a healthy work environment.
12. They Are Experiencing Excessive Burnout
Sometimes, employees experience burnout, which leads to a decline in performance, absenteeism, and disengagement. While burnout can sometimes be addressed through support or role adjustments, prolonged burnout may indicate that the employee is no longer suited for the role. Some people are just not cut out for certain jobs.
13. They Have Misalignment with Company Values and Culture
If an employee’s behaviour or actions are consistently out of alignment with the company’s values or mission, it can create a disconnect that impacts the organization’s culture. In such cases, it may be time to let the employee go to preserve the company’s values and environment.
Headhunter advice: What to Do When an Employee Resigns: A Resignation Period Checklist
14. There Are Repeated Complaints from Colleagues or Clients
Constant disruptions and disputes are not good for business. Frequent complaints about an employee’s conduct or performance from colleagues, clients, or customers should not be ignored. If the complaints are consistent and legitimate, they may signal a pattern of problematic behaviour that warrants dismissal.
15. It Doesn’t Make Financial Sense
There can come a time when keeping an employee no longer makes financial sense. For example, a sales rep who fails to make quota. In these situations, it can make more sense to let the employee go rather than keep them.
16. They Create More Work Than They Complete
Some employees perform their role but require constant supervision, corrections, or intervention. In this sense, they create more work than they complete. This hidden productivity drain affects managers and teammates.
Include examples such as:
- Managers constantly fixing mistakes
- Coworkers double-checking their work
- Repeated missed details
- Excessive oversight required
17. Every Performance Conversation Ends the Same Way
One overlooked sign is when repeated coaching produces no meaningful change. Nothing you seem to do to help an employee improve performance works.
If you’ve provided coaching sessions, written warnings, improvement plans, and additional training and nothing changes, termination may become the appropriate next step.
Before You Decide to Let Someone Go
Termination should never be the first response. It’s a decision that requires careful thought. Before making a final decision, ask yourself:
- Have expectations been clearly communicated?
- Has the employee received coaching and feedback?
- Have you documented performance concerns?
- Were they given a reasonable opportunity to improve?
- Could training, reassignment, or accommodation solve the problem?
- Have you considered your legal obligations under employment standards and human rights legislation?
Only once you have exhausted your options is it then time to consider termination.
A Final Word About Letting Employees Go
Letting people go is never an easy thing to do. While it’s important to give employees opportunities to improve, certain patterns of behaviour, such as poor performance, toxicity, or ethical violations, may indicate that it’s time to part ways. Letting an employee go can benefit both the individual and the company by creating a healthier, more productive workplace. But make sure you do things correctly and consult HR so you don’t run into legal issues.
More Advice From Our Toronto Executive Search Team
The Shocking and Not So Shocking Reasons People Get Fired
“We’re Going in Another Direction”: How to Turn Down a Candidate


