In the End, It All Comes Down to People

● No secrets. Everyone else knows when an employee isn't pulling his or her weight. And tolerating that poor performance demoralizes co-workers. Use the termination as an opportunity to establish the high standards you have for performance of everyone.

● Tell the truth. Give current and departing employees honest feedback about where they succeeded and where they didn't fit the bill. If they're open to it, help them determine what kind of job might be a better fit and offer to be a reference — understanding that your reference will be entirely honest.