Capability and fit
Someone Is No Longer Right for the Role
Whether through capability, a change in the business, or something harder to articulate, you are starting to think this is not working. You want to handle it fairly, but you are not sure how.
This is one of the most difficult situations to navigate
It is not always a clear-cut performance issue. Sometimes it is more subtle. The role has evolved and the person has not kept up. Or the business has grown and the skills that worked before are not what is needed now.
Or you hired them hoping they would grow into it, and they have tried hard, but it is increasingly clear that this is not the right fit.
The difficulty is that this person has probably not done anything wrong. They may have worked hard and cared about the job. That makes the situation feel harder and the decisions feel weightier.
But leaving it unresolved is rarely better for either party. In most cases, the longer it goes on, the more painful the eventual outcome.
What gets harder the longer this is left
- The gap between what is needed and what is being delivered becomes more embedded
- Other employees notice and wonder why standards are being applied inconsistently
- The employee builds tenure, increasing their legal protections and financial exposure for the business
- A rushed or emotional decision to end the employment creates an unfair dismissal claim
- The business and the employee end up in a worse position than an earlier honest conversation would have created
- Options like a mutual exit or settlement become more expensive the longer the employment continues
How to approach this properly
- 1
Be clear in your own mind about what the issue actually is
Is this a capability issue, a redundancy situation, or something in between? This matters because the right process differs significantly. Getting clarity on this before you start anything is essential.
- 2
Have an honest, supportive conversation first
Before formal process, a clear conversation about what you are observing, what the business needs, and what options might exist is usually the right starting point. It gives the employee the chance to respond and sometimes resolves the situation without a formal process.
- 3
Consider whether a mutual exit is realistic
In some cases, both parties know the situation is not working. A well-handled conversation about a mutually agreed departure, with appropriate terms, is cleaner, quicker, and less damaging for everyone than a protracted formal process.
- 4
If formal process is needed, do it properly
Capability process, redundancy, or settlement. Each has specific legal requirements. Getting the process wrong, even when the underlying decision is entirely reasonable, creates avoidable legal and commercial risk.
Common questions
Questions business owners ask about this
Can I dismiss someone who is not right for the role if they have not done anything wrong?+
Yes, but only through a proper capability process. This requires demonstrating that the employee does not have the ability or qualifications to do the job, that this has been communicated clearly, that support has been offered, and that a fair procedure has been followed. Dismissing someone without this is unfair dismissal.
What is the difference between someone not being capable and someone not meeting expectations?+
Capability relates to whether the employee can do the job with the right support and a fair opportunity. Not meeting expectations could be a performance issue, a management issue, or an expectation that was never properly communicated. Before starting a capability process, it is worth being honest about which of these is actually the case.
What if the employee has worked for us for many years but the role has moved on?+
Long service does not remove the employer's ability to manage capability, but it increases the obligation to support and to explore alternatives. A long-serving employee who can no longer meet the requirements of a changed role may also have a redundancy argument if the role itself has fundamentally changed.
What is a settlement agreement and when might it be the right option?+
A settlement agreement is a legally binding contract by which the employee agrees to leave in exchange for a financial payment and waives their right to bring most employment claims. It is often the cleanest way to resolve a situation where the employment relationship is no longer working, for whatever reason.
How do I start the conversation with an employee who is not right for the role?+
Carefully, and with preparation. The first conversation should be honest about what you have observed, constructive about what is needed, and open to the employee's perspective. Getting advice on how to frame this conversation before you have it is almost always worth doing.
You might also be dealing with
These situations often come up alongside each other.
Ready when you are
Not sure what to do next?
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