Deciding whether to let an employee go or overhaul a team’s structure is one of the toughest calls a leader faces. Beyond operational impact, these decisions carry emotional and ethical weight. Understanding the right approach protects your company’s integrity and your people’s dignity.
Firing: Recognizing Individual Performance Issues
Firing is never taken lightly. It should only follow clear, repeated evidence that an individual cannot meet expectations after fair support and feedback. Common signals include:
- Consistently missed targets despite coaching
- Persistent misalignment with company values
- Skills mismatch that cannot be addressed through training
- Negative impact on team morale or culture
For example, a sales manager who repeatedly fails to adapt to new strategies, despite targeted training and clear feedback, may be better served by an exit. Keeping someone in the wrong role only prolongs frustration for everyone involved.
Restructuring: Addressing Systemic or Organizational Challenges
Restructuring becomes necessary when performance issues affect groups, not individuals. Signals that restructuring may be needed include:
- Unclear roles or overlapping responsibilities
- Incentives that discourage collaboration or innovation
- Rapid growth causing communication breakdowns
- Shifting business priorities requiring new skill sets
Consider a scenario where two departments regularly duplicate efforts and miss deadlines. The problem may not be the people, but the lack of clear ownership or outdated processes. Realignment can unlock performance and engagement.
Risks of Delaying Action
Delaying tough decisions can erode trust and stall progress. When under performance goes unaddressed, top performers may disengage. Ignoring structural problems can lead to missed opportunities and costly turnover. Early, fair action shows respect for everyone’s time and contribution.
Fairness, Documentation, and Communication
Regardless of the path, fairness is critical. Document performance objectively. Communicate decisions transparently and compassionately. Provide clear reasons, next steps, and available support. Consistent, documented processes protect both individuals and the organization.
Decision Framework: Fire or Restructure?
- Is the issue isolated to one person? If yes, assess fit, values, and documented performance.
- Have you provided clear feedback and support? If yes and there is no improvement, firing may be justified.
- Are multiple people or teams impacted? If yes, examine workflows, incentives, and reporting lines.
- Are roles or business needs unclear? If yes, restructuring may deliver better results.
Conclusion: Leadership Responsibility
Choosing between firing and restructuring is never easy. Both require careful, objective assessment and a commitment to fairness. Your actions shape company culture and set the tone for future growth. When handled thoughtfully, these decisions can strengthen trust and create lasting value.
