Letting go of an employee is one of the toughest decisions a leader can face. Yet, holding on to someone who isn’t meeting expectations can harm your company’s morale, productivity, and culture. The 7 and 8 Rule offers a straightforward and compassionate way to assess whether it’s time to make the hard call. This framework ensures the process is fair, thoughtful, and beneficial for both the company and the employee.

Understanding the 7 and 8 Rule

The 7 and 8 Rule is based on two critical questions:

1. If you had the chance to rehire this employee, would you do it?
2. Is this employee’s performance affecting the productivity and morale of the rest of your team?

If your answer is no to the first question and yes to the second, it’s time to take action.

Step 1: Ask Yourself the Rehire Question

Imagine you’re looking at this employee as if they were a new hire. Knowing what you know now about their performance, attitude, and contribution to the team, would you bring them on board again? If the answer is no, it’s a strong indicator that this person might not be the right fit for your company.

Why it matters:

This question helps you separate emotion from practicality. Often, we let loyalty or a desire to avoid conflict cloud our judgment. But if you wouldn’t enthusiastically rehire someone, it’s a sign they’re no longer aligned with the company’s needs or direction.

Step 2: Assess the Impact on the Team

An underperforming employee doesn’t just affect their own work—they can drag down the entire team. Are they causing frustration or resentment among other team members? Are you spending more time managing their issues than focusing on growth?

Why it matters:

A toxic or underperforming employee can create a ripple effect, lowering morale and damaging the overall culture. If their presence is holding back your high performers or causing unnecessary tension, it’s time to take action.

Step 3: Have a Clear Conversation

Before jumping to conclusions, have an honest conversation with the employee. Ask them about their challenges and where they think they could improve. Sometimes, performance issues stem from a lack of resources, clarity, or support. Address these concerns first, but if things don’t improve, you’ve laid the groundwork for a fair decision.

Key points to cover:

• Performance expectations: Clearly define what success looks like in their role.
• Resources and support: Ensure they have the tools needed to succeed.
• Timeline for improvement: Give them a realistic timeframe to show improvement.

Step 4: Make the Decision with Compassion

Firing someone is never easy, but it’s important to handle the situation with empathy and respect. Ensure the conversation is private, concise, and focused on the bigger picture. Acknowledge the employee’s efforts, but explain why their role no longer fits the company’s needs.

Pro Tip:

Offer assistance, such as providing a reference or connecting them with potential job leads. By treating the situation with care, you preserve your company’s reputation and show respect for the individual.

Conclusion: Firing with Purpose

The 7 and 8 Rule is a powerful tool to help leaders make difficult decisions in a structured, empathetic way. By asking yourself whether you would rehire the employee and assessing their impact on the team, you can ensure that firing is done for the right reasons—and in a manner that maintains dignity and respect for both parties. Firing may be tough, but letting the wrong person go can be the catalyst for greater team cohesion, productivity, and growth.