• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Most Powerful Women

How I Fired the First Employee I Ever Hired

By
Claire Lew
Claire Lew
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Claire Lew
Claire Lew
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
August 22, 2016, 8:30 PM ET
Woman carrying box of stationery
Woman carrying box of stationeryImage Source — Getty Images

The MPW Insiders Network is an online community where the biggest names in business and beyond answer timely career and leadership questions. Today’s answer for: What’s the best way to deliver bad news to your team? is written by Claire Lew, CEO of Know Your Company.

The first employee I ever hired at Know Your Company was my accountant. She was a successful businesswoman with her own firm and numerous high-profile clients. And she was someone I had looked up to since I was 19.

However, she had made a few crucial mistakes in our bookkeeping and invoice collection—mistakes that were too big to ignore. I knew it wasn’t a lack of competence that had caused her to make these mistakes. Rather, she had other, larger clients that were taking up her time.

I was torn. This is a person who’d seen me hostessing at a restaurant in order to earn the money to start my own business. She had believed in my company and me before we had a single customer. I don’t take that loyalty lightly. However, I eventually decided to let her go. I knew it was in the best interest of the business in the long run, but it was important to me that I deliver this bad news with incredible tact and respect.

Here’s how I did it:

Deliver bad news as soon as you know it
There is never a “right time” to tell an employee something bad—especially if you’re firing her. You’ll want to come clean as quickly as possible.

When it comes to firing someone, chances are your other employees are already thinking, “Why is this employee still here?” If an employee is chronically underperforming, most of your other employees have noticed, and they’re wondering why you still haven’t done anything about it.

So, the minute I decided firing our accountant was the right move to make, I immediately wrote her an email scheduling a time to sit down with her. The sooner she knew the reality of the situation, the sooner she could move on and continue growing her own business.

See also: The One Thing A Boss Should Never Say When Delivering Bad News

It serves no one to pretend that “everything is okay” when it isn’t.

Make it about the business
When you’re letting an employee go for performance reasons, it’s easy for the conversation to take a negative turn. You’re pointing out professional flaws—and that never feels good.

However, instead of focusing on the person’s skills, attributes, and shortcomings, focus on the business. Zoom out and show your employee the big-picture needs of the business. Then, as objectively as possible, discuss how her or his contributions are not matching up with those needs.

For example, I told our accountant that I needed to think about the long-term sustainability of the business—that as we grow, our financials would only become more complex and time-consuming. I needed to bring on someone who could dedicate the time and focus to us and avoid certain mistakes.

When you make it about the business, there’s a less personal tone to it. Your employee won’t get as defensive, and your parting will feel much more amicable.

Listen
When you’re telling someone bad news, you’re often preoccupied with communicating your own message. This is understandable (you are relaying some tough news, after all), but you have to keep in mind what your employee must be thinking and feeling: shock, confusion, sadness, and loss of control.

As a result, give your employee the opportunity to respond and weigh in. Ask directly: “What do you think? How are you feeling about this?”

 

By simply listening, you allow the employee the space to own the conversation, as well. You’re also demonstrating that you’re concerned about how the employee is interpreting this news. The best way to show respect is to listen (and reading how the news is received will be helpful for you should you have to let someone else go down the road).

I made sure to do this when I told my accountant we were going our separate ways. I asked her how she felt about the decision, and she talked and talked and talked. She unloaded details of how full her plate was and how crazy things were for her.

I listened, never cut her off, and allowed her to absorb the news. And when we were done chatting a few hours later, we hugged and wished each other the best. We remain friendly to this day. In fact, just the other day, she sent me the nicest note congratulating me on all the progress we’ve made with Know Your Company.

If I hadn’t been willing to just listen for an hour or so when we parted ways, I doubt the same outcome would have occurred.

About the Authors
By Claire Lew
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Dow’s next chapter depends on whether new CEO Karen Carter gets room to lead—and how fast Jim Fitterling steps back
NewslettersCEO Daily
Dow’s next chapter depends on whether new CEO Karen Carter gets room to lead—and how fast Jim Fitterling steps back
By Diane BradyApril 15, 2026
11 minutes ago
Mike Horton poses with his arms crossed.
NewslettersTerm Sheet
Exclusive: Hyfix raises $15 million to build a U.S. alternative to DJI’s drone dominance
By Lily Mae LazarusApril 15, 2026
15 minutes ago
Top CD rates today, April 15, 2026: Lock in up to up to 4.20%
Personal FinanceCertificates of Deposit (CDs)
Top CD rates today, April 15, 2026: Lock in up to up to 4.20%
By Glen Luke FlanaganApril 15, 2026
33 minutes ago
Today’s top high-yield savings rates: Up to 5.00% on April 15, 2026
Personal FinanceSavings accounts
Today’s top high-yield savings rates: Up to 5.00% on April 15, 2026
By Glen Luke FlanaganApril 15, 2026
33 minutes ago
A ULA Atlas V-551 rocket lifts off with 27 new Amazon Leo satellites from Cape Canaveral Space Force Station in Florida on December 14, 2025. (Photo: Manuel Mazzanti/NurPhoto/Getty Images)
NewslettersFortune Tech
Why Amazon bought Globalstar for $11.6 billion
By Andrew NuscaApril 15, 2026
44 minutes ago
Jeremy Renner
AIHealth
Exclusive: Jeremy Renner bets on the tech that could have saved his life faster: ‘There’s 150 people that are responsible for me not dying’
By Catherina GioinoApril 15, 2026
1 hour ago

Most Popular

Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
Success
Billionaire philanthropist MacKenzie Scott has donated again—a week after gifting millions to a college, she's just given $70 million to Meals on Wheels America
By Fortune EditorsApril 13, 2026
2 days ago
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
Commentary
Retirees are facing a $345,000 bill they never saw coming — and most aren't prepared
By Fortune EditorsApril 14, 2026
1 day ago
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
Success
He was coding at 12 like Elon Musk and became one of Google’s youngest-ever CMOs—but now says Gen Z is better off ice skating than learning to code
By Fortune EditorsApril 14, 2026
1 day ago
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
AI
Anthropic is facing a wave of user backlash over reports of performance issues with its Claude AI chatbot
By Fortune EditorsApril 14, 2026
1 day ago
Current price of oil as of April 14, 2026
Personal Finance
Current price of oil as of April 14, 2026
By Fortune EditorsApril 14, 2026
22 hours ago
Current price of gold as of April 13, 2026
Personal Finance
Current price of gold as of April 13, 2026
By Fortune EditorsApril 13, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.