Exiting Staff the Right Way — Avoiding Drama & Preserving Reputation

Firing someone in a small team is tough. But poor performers—or just the wrong fit—can cost a startup dearly if not addressed early.

1. Know the Red Flags

Startups often wait too long to act. Signs it’s time to consider a staff exit:

  • Repeated failure to meet clearly defined goals

  • Cultural misalignment

  • Disruptive behavior or poor collaboration

2. Handle It Legally and Ethically

Even in Australia’s startup-friendly environment, there are legal obligations. Be sure you:

  • Document underperformance

  • Provide feedback and opportunities to improve

  • Understand Fair Work compliance

3. Communicate Internally with Care

Your small team will notice. Frame the exit as a business decision, and emphasise the values and standards you expect going forward.

Tip: Maintain respect and offer references if the exit is amicable.

Conclusion:
People moves are part of growth. At Adair Consulting Group, we help founders navigate exits with integrity and clarity—minimising risk and protecting morale.

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Managing Staff in a Startup — What Works (and What Doesn’t)