How Do I Compassionately Communicate a Contract Termination to a Good Employee?

Dear HR professionals, I am working in a non-profit organization and find myself in a state of confusion. We hired a staff member to manage PR and Communications on a 6-month contract, which is expiring at the end of June. Management has decided not to extend his contract as he is deemed unreliable and unsuitable for the position. As the HR manager, it is my responsibility to issue him a letter informing him of his one month's notice period and termination, as the organization no longer requires his services. However, I am feeling uneasy about how to communicate this termination, as he is a very good person. Could you please advise me on how to convey this message verbally and what to include in the letter? Thank you, Simone Joshi

The said employee is on contract. Therefore, whether to extend the contract period or not is the prerogative of the other party. Please note that this is not a termination. All you need to do is to send him a letter stating that as per the contract agreement dated _____, it expires on _____. The management of this company does not wish to renew this contract further.

Decision-Making in Management

Management science tells us that decisions should be made based on logic rather than emotions. We pay for performance, not for the person. Therefore, being a "good person" is not sufficient.

Yes, I understand that your organization is a non-profit one and not a commercial entity. However, it is also not a political organization. In politics, it is common to nominate a "good person" as a presidential candidate even if that individual has a poor track record as a minister.

Regards,
Dinesh V Divekar