The Day I Knew It Was Time to Fire Someone: The Leadership Lesson Every Gym Owner Must Learn

When Is It Time to Let an Employee Go?

I was flying out to conduct a two-day sales training seminar for a group of fitness clubs.

The owner picked me up at the airport, and as we were driving to the gym, he turned to me and asked a question that every gym owner, studio operator, and manager eventually faces:

“Jim, when do you know it’s time to fire somebody?”

It’s a great question.

In fact, it may be one of the most difficult leadership decisions you’ll ever make.

Without hesitation, I gave him my answer.

Our job as owners, managers, and leaders is to give 100% of our effort to make someone as good as they can possibly be. The very second we feel we can no longer do that, it’s time to let them go.

At that point, you’re actually doing both of you a favor.

That answer has guided me throughout my entire career in the fitness business.

And after working with hundreds of gyms, health clubs, boutique studios, and fitness businesses, I’ve found it remains one of the most reliable tests for making difficult personnel decisions.

The Biggest Mistake Gym Owners Make

Many gym owners wait too long.

Way too long.

They know an employee isn’t performing.

They know the person isn’t living up to expectations.

They know the team is frustrated.

They know members are noticing.

But they delay the decision because:

• They don’t want confrontation.
• They hope things will improve.
• They feel loyal.
• They remember when the employee was good.
• They’re afraid of being short-staffed.

The result?

The problem grows.

What starts as a performance issue becomes a culture issue.

What starts as one underperforming employee eventually affects every employee around them.

Before You Fire Someone, Ask Yourself These Questions

Before making a termination decision, every leader should ask:

1. Have I Clearly Defined Expectations?

Many employees fail because expectations were never fully explained.

Ask yourself:

• Did they receive proper training?
• Do they understand their responsibilities?
• Have performance standards been documented?
• Do they know what success looks like?

You cannot hold someone accountable for standards they were never taught.

2. Have I Provided Coaching?

Leadership isn’t about catching people doing things wrong.

Leadership is about helping people improve.

Have you:

• Conducted one-on-one meetings?
• Provided feedback?
• Offered additional training?
• Given them a chance to correct the issue?

If the answer is no, then the problem may not be the employee.

It may be a leadership issue.

3. Have I Given Them Every Opportunity to Succeed?

This is where my airport conversation comes into play.

As leaders, we have an obligation to give our people every reasonable opportunity to become successful.

That means:

• Training
• Coaching
• Mentoring
• Accountability
• Encouragement
• Resources

If you’ve genuinely invested in helping them improve and nothing changes, you’re approaching the decision point.

4. Are They Unwilling or Unable?

There’s a significant difference.

An employee who is unable may need more training.

An employee who is unwilling is a completely different situation.

Watch for:

• Poor attitude
• Resistance to coaching
• Lack of effort
• Consistent excuses
• Negative influence on team culture

Skills can often be taught.

Attitude is much harder to change.

As I’ve said many times throughout my career:

You can train skill. You cannot train desire.

What I See Most Often in Gyms

One of the most common mistakes I see is owners keeping employees because they’re afraid of creating a staffing gap.

They settle for mediocre performance because they don’t want an empty schedule.

But here’s the reality:

A bad employee often creates a much bigger hole than an empty position.

One toxic team member can:

• Hurt member retention
• Lower team morale
• Reduce sales
• Create member complaints
• Increase staff turnover

Sometimes the most productive thing you can do for your business is remove the obstacle that’s holding everyone else back.

The Hidden Cost of Keeping the Wrong Person

Most gym owners calculate payroll costs.

Few calculate the cost of poor performance.

Consider the impact of:

• Missed sales opportunities
• Lost referrals
• Poor member experiences
• Increased cancellations
• Negative online reviews
• Lower employee morale

A weak team member often costs far more than their paycheck.

The Best Employees Are Watching

Here’s something many owners overlook.

Your top performers are paying attention.

They notice:

• Who gets held accountable.
• Who doesn’t.
• Who follows the rules.
• Who doesn’t.
• Who contributes.
• Who coasts.

When poor performance is tolerated, your best employees begin questioning leadership.

Eventually, they may leave.

Not because of the poor employee.

Because of the leader who allowed it to continue.

The Ultimate Test

If you’re struggling with a termination decision, ask yourself this simple question:

“Am I still capable of helping this person become better?”

If the answer is yes, keep coaching.

Keep teaching.

Keep leading.

But if you’ve honestly reached the point where you’ve exhausted your ability to help them improve, then the decision may already be made.

At that moment, holding on serves neither of you.

You’re preventing them from finding a role where they may be more successful.

And you’re preventing your business from moving forward.

Leadership Requires Courage

Firing someone is never enjoyable.

It shouldn’t be.

Good leaders care about people.

But leadership also requires courage.

Sometimes the kindest thing you can do is have the difficult conversation.

Because when you can no longer help someone grow, keeping them in a role where they are struggling benefits no one.

Remember the lesson from that airport ride:

Our responsibility is to give 100% of our effort to help people become the best version of themselves. The moment we can no longer do that, it’s time to let them go and do both of you a favor.

That’s not failure.

That’s leadership.

Frequently Asked Questions

How do I know when it’s time to fire an employee at my gym?

When you’ve clearly defined expectations, provided coaching, offered training, and made every reasonable effort to help them improve, yet performance and behavior remain unchanged.

Should I fire an employee for poor performance?

Not immediately. Start with training, coaching, accountability, and documented expectations. Termination should generally be the final step after reasonable efforts to improve performance have failed.

What is the biggest mistake gym owners make with employees?

Waiting too long to address performance issues and allowing underperforming employees to negatively impact culture, sales, member retention, and team morale.

Can one bad employee hurt an entire gym?

Absolutely. One toxic or disengaged employee can affect member experience, staff morale, sales performance, retention, and the overall culture of the business.

What’s the best leadership philosophy regarding termination?

Give 100% of your effort to help employees become successful. When you’ve exhausted your ability to help them improve, it’s time to make a change that benefits both the employee and the organization.