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Compassionate HR: How to Let People Go, Layoffs & Support

Written by Emily Owensby | Nov 11, 2025 4:12:38 PM

Letting someone go is one of the hardest responsibilities a leader will ever shoulder—and most of us were never really trained how to do it well. For Georgia employers, especially growing businesses in and around Atlanta, terminations and layoffs aren’t just emotional moments; they’re also packed with compliance risk and long-term culture impact.

That’s why we’re so proud that our Sr. HCM Consultant, Emily Owensby, was recently featured in the Georgia Society of CPAs’ Current Accounts magazine. In her article, “Compassionate HR: How to Let People Go, Layoffs and Support After Firing,” Emily breaks down what compassionate HR really looks like when you’re facing the uncomfortable role of letting someone go—whether it’s a performance issue, a restructure, or a reduction in force.

If you’re an HR leader, business owner, or finance leader in Georgia, this piece will help you think more strategically about terminations: documenting clearly, preparing managers, protecting your organization, and caring for both the exiting employee and the team that remains. With her background supporting employers across the state, Emily brings a practical, Georgia-focused lens to a topic most leaders would rather avoid—but absolutely can’t ignore. Read Emily’s full article below:

Every business should know that their human capital is their most important asset. There are few tasks in leadership that weigh heavier than letting someone go. Terminating an employee, whether it be due to performance, restructuring or economic uncertainties, has consequences. Because there is both organizational and human impact, terminations are often handled poorly. Whether strict formality that leads to a transactional approach or emotion led vagueness that leads to confusion, both can lead to a damaged culture. Compassionate HR practices give companies the ability to merge humanity and business needs to ensure that even in the heaviness of terminating an employee, those involved feel respected and the organization preserved.

For CPAs, these moments are particularly important to understand both for their own practice and when advising clients. Beyond the financial impact, how terminations are handled can affect compliance, risk exposure and long-term organizational health. These are areas where trusted advisors are often asked for guidance.

COMPASSION IS NOT THE ABSENCE OF HARD DECISIONS

Compassion in HR isn’t about avoiding tough decisions or taking a soft approach. It’s about being strategic with the decisions and how they are communicated. When it comes to terminations, there are three affected parties: the exiting employee, the remaining staff and the business. How the company treats the terminated employee sends a strong message about the culture of the organization. When a business is compassionate while letting an employee go it makes that employee feel supported, fosters trust and lessens fear in the remaining employees, and protects the employer’s brand while also reducing the legal risk. The remaining employees are taking notes. How the exiting employee is treated will have a huge impact on those remaining with the business. The company is also affected by how the termination is handled. Culture can be damaged by lack of transparency. Consider two scenarios: In one, an employee is escorted out abruptly with little explanation, leaving colleagues anxious and speculating. In another, the manager holds a respectful meeting, provides a clear explanation and offers resources to support the transition. The difference in long-term cultural impact between the two approaches is enormous.

DOCUMENTATION

Unfortunately, litigation is typically at the forefront of a leader’s mind when considering a termination. That’s why clear, consistent documentation is one of the most important tools for protecting both the organization and the employee. Proper documentation should tell the story of performance concerns or behavior issues over time while also outlining expectations, providing feedback and offering opportunities for improvement prior to a termination. It provides a paper trail in the event of legal scrutiny and demonstrates fairness, transparency and a genuine effort to support the employee’s success before reaching the point of termination. Consistency in documentation gives less room for discourse when the decision is reached to terminate. Trust is strengthened when similar situations are handled in the same way across the organization. The perception of fairness is crucial to employee engagement. 

PREPARATION IS KEY

Before beginning the actual conversation for letting someone go, it’s important that the leaders are all in alignment on messaging and logistics. Ensuring the right people are present (HR, manager, etc.) and that a clear, concise reason is given is crucial. Starting the conversation with empathy while also giving the reason to the decision helps the employee feel humanized and not just a number in the headcount. Phrases such as “This news is difficult to share “ or “The decision was not made lightly” can lessen the blow. It’s important to give the employee room for emotion during this time. They may respond with anger, sadness or even shock. Listening without becoming defensive is respectful and can go a long way. Unless security is a concern, avoid rushing the employee out. Give them the space and time to say goodbye to colleagues and gather their personal items. Always be sure to provide clear communication on the next steps: final pay, benefits, severance, etc. For CPAs advising clients, this step is critical. Payroll accuracy, compliance with COBRA or state continuation rules, and timely delivery of final wages are not just HR best practices, they are compliance obligations.

THE RIPPLE EFFECT

In the process of a termination, your remaining employees are carefully observing. How leadership handles the situation can have a huge impact on their engagement and loyalty. Acknowledging the loss is always a better play than going on as though nothing happened. Leaders should openly and as transparently as possible address the change. If the termination is unexpected remaining staff may need reassurance about their own roles and the direction of the company. One on one conversations, team check-ins or company-wide resources can offer a boost in morale and lessen disengagement. When your remaining employees see compassion paired with clarity, it reassures them that leadership is not only making tough decisions but also standing by the people who make the organization possible. Ultimately, this careful balance of empathy and communication strengthens your culture in ways that will outlast any single transition.

LEADING THROUGH TOUGH TIMES

For the leader(s) who are handling the termination(s), a mindset shift is key. Seeing terminations as a human transition and not just a separation allows for a more compassionate process. 

Ask yourself these questions:

  • Did I plan ahead and am I well prepared?
  • Can I be clear and direct while also being empathetic and respectful?
  • Have I offered ongoing support beyond a final paycheck?
  • Is my remaining staff reassured about the direction of the company?

If you can answer these questions with a yes, you’re much better off than many others in your shoes. By easing the burden on the individual leaving, you also demonstrate to your remaining team that leadership values transparency, stability, and integrity. These intentional steps can transform a painful moment into one that ultimately builds trust and confidence in the organization’s future.

USING COMPASSION AS A COMPETITIVE ADVANTAGE

In conclusion, it’s important to be attuned with the human side of the business. How tough decisions are handled says so much. When handled with empathy, clarity and respect, letting people go can solidify the foundation of a culture that demonstrates integrity. For CPAs advising clients, these moments offer an opportunity to guide businesses far beyond the balance sheet. Terminations and layoffs have financial implications, but they also carry compliance, reputational, and cultural risks that can directly impact long-term stability. CPAs position themselves as trusted partners who protect both the numbers and the people behind them, ensuring businesses remain healthy, sustainable, and respected.

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Terminations and layoffs will never be “easy,” but they don’t have to be chaotic or cold. As Emily explains, compassionate HR is about threading together clear documentation, consistent processes, and genuine care for the people involved—all while staying compliant with Georgia and federal employment laws.

If you’re a Georgia employer who’s wrestling with difficult staffing decisions, you don’t have to navigate it alone. Thread’s certified HR consultants partner with businesses across Atlanta and the Southeast to:

  • Coach leaders through tough conversations
  • Review and tighten termination and layoff processes
  • Support change management and communication with your remaining team
  • Align your HR practices with your values, not just your policies

Want help building a more compassionate—and compliant—approach to terminations and layoffs?

Get in touch with our HR consulting team today to talk through your situation and explore how Thread can support your people and protect your business.