Beyond the pink slip: 4 alternatives to terminating an employee

Workplace investigations are like navigating a maze in a fog — you’re trying to find the truth while balancing policy, context, and individual circumstances. It’s rarely black and white, especially when it comes to deciding if a particular behavior calls for termination. 

While there are some clear red flags, like sexual harassment or safety violations, the line is often much blurrier. What if the employee’s actions were rooted in a misunderstanding, or they’ve shown genuine remorse? Factor in company culture, past precedents, and potential for growth, and suddenly, making that call gets really complicated.

So the next time you find yourself in the middle of an investigation regarding “middle ground” behavior that doesn’t violate company policies, here are a few alternatives to the dreaded pink slip.

1. Assign a training course that addresses the employee’s behavior.

If the issue involves misunderstandings, policy violations, or performance gaps, targeted training can help the employee improve. This approach is best suited for minor slip-ups and helps reinforce your company’s values.

Here are some examples of “iffy” behavior we address in the Ethena course catalog:

• Harassment Prevention: Pregnancy & Parenthood, Hierarchical Workplace Relationships, Celebrating Cross-Cultural Holidays
• DEIB: Unconscious Bias, Understanding Privilege, Pronouns
• Code of Conduct: Political Activities, Conflicts of Interest

2. Issue a formal warning.

If your workplace investigation concludes with findings that highlight an employee’s need for corrective action, a formal warning can be an effective way to address the issue without resorting to termination. Issuing a formal warning involves careful preparation, clear communication, and the right documentation to ensure fairness and compliance.

A well-crafted warning document should include:

• Details of the incident or behavior: Describe the actions or behaviors that were problematic. Don’t forget to cite specific examples from the investigation.
• Relevant policy violations: Reference any policies that were violated, which will provide a foundation for the warning based on preexisting company rules.
• Expected improvements: Outline the specific changes or improvements expected from the employee, setting clear and realistic standards.
• Consequences of non-compliance: Explain the potential consequences if the employee fails to improve. This could include additional warnings, suspension, or termination.
• Support resources: Offer information on support resources, like training programs and mentorship, which can help the employee meet expectations.

3. For senior-level employees, pair them with an exec coach.

Investing in career coaching as an alternative (or supplement) to disciplinary actions can reinforce positive leadership behaviors, encourage personal growth, and even strengthen your entire organization. Executive coaches provide objective, expert guidance that can help:

1. Reflect on — and correct — behavior: A coach can help an executive recognize behaviors that might be negatively impacting others and guide them in developing more effective, respectful communication and leadership skills.
2. Improve decision-making and accountability: Career coaching can help executives build accountability, recognize biases in their decision-making, and ensure that they’re leading in alignment with organizational values and ethics.
3. Rebuild trust and culture: A coach can support executives in understanding how to rebuild trust with their teams or departments following an investigation, helping them repair relationships and boost transparency.
4. Enhance conflict resolution skills: Especially in situations where conflict management has been a challenge, career coaching can equip executives with more effective techniques for resolving disputes, both within their teams and at the leadership level. (Grab our Conflict Resolution Worksheet here!)

4. Opt for mediation when it comes to interpersonal conflicts.

Finally, mediation can be another helpful alternative to termination, especially when the issues at hand involve interpersonal conflicts, misunderstandings, or communication breakdowns, rather than clear-cut policy violations. 

Mediation provides a structured environment where a neutral third party facilitates dialogue between conflicting parties, helping them express their concerns openly and work toward a mutually acceptable outcome. This process allows employees to gain insights into each other’s perspectives, which builds empathy, trust, and cooperation — all of which can be transformative for both parties and the overall team dynamic.