It's rare that a statement as stark and simplistic as "doesn't make the cut" applies. Usually there are deeper issues to consider. Start by inviting them to co

It's rare that a statement as stark and simplistic as "doesn't make the cut" applies. Usually there are deeper issues to consider. Start by inviting them to comment on the job environment and responsibilities they've been given. If they demonstrate lack of understanding of the latter, or provide comments that differ remarkably from other reports' and your own personal knowledge of the former, then you're either wearing rose colored glasses about the quality of the environment and/or the employee is laboring without sufficient guidance (i.e. management is poor), or else they're just not "getting it". In the former case, determine if this deficiency can be remedied in a timely manner. If it can't, deeper problems exist in the organization: seriously consider that other employees might need the "termination treatment." In the latter case, dive deeper to find out why their performance is not up to your standards: if it can be rectified allow appropriate time to do so, otherwise terminate their employment. The correct way to do that is in person, in a private setting (e.g. manager's office or meeting room), with a severance package ready and appropriate consideration for the professional future of the employee: that they aren't a fit at your organization should not be something that diminishes their ability to make a living elsewhere, where it may be a better fit.