We have a small landscaping firm and took on 1 permanent and 2 temporary members of staff earlier in the year.

We can only keep one of the 3 on over the winter and we had assumed that this would be the permanent member of staff as he is the most qualified and was the best at interview. However, the temporary members of staff are much better than the permanent guy: they work quickly, use their initiative and fit well within the team.

The permanent guy isn't terrible, he is just a bit slow, doesn't fit so well in the team and quite frankly, just isn't up to the standard of the other two.

In hindsight, we obviously should have offered them all temporary contracts and then we could have chosen the one to make permanent, however, this isn't what we did and now we have to decide what to do next.

I am tempted to be totally honest and say that we will not make the position permanent after probation because he just doesn't fit as well into the team as the others. I would give him plenty of notice, say that we will give him excellent references (we could even say that he was only on a temporary contract if he wanted us to do that). I might even be tempted to offer him some extra severance pay.

However, my partner wants to say that we don't have the work to keep any of them on (although this isn't true and we would keep at least one of them on).

The other alternative is to put him through some kind of performance review - but we know he is going to fail that so it also seems a bit unfair.

What would people want to be explained to them if they were in this guy's position?

I can see you being totally honest if he's been receiving feedback from the beginning on areas he needs to improve on. But really what is the point right now. Giving him plenty of notice makes you feel good but if you think he's slow now, watch how slow he gets knowing there's no point in him busting his buttocks for someone that is laying him off. Severance pay – no. As an employer you have to hire and fire. It's in the job description. As an employer I believe in setting expectations and giving feedback both on good and bad performance. Then there is no gray area. It's tough firing people so you want to keep it short and sweet and not give him any reason to file anything against you. Florida is a right to work state and we can just show anyone the front door with no explanation at all. Keep it short and sweet.

You are running a business, you can't be emotional about it. Part of running a business is terminating employees who don't measure up. Your partnet needs to get some backbone and be honest.

You mention the word contract on several occasions. Has this employee actually signed a contract with you?

Permanent, but still in a probationary period, it sounds like.
Let him go without any frills or fanfare. That's what probation IS. I see no reason not to tell him that the 2 temps were better, and why (all in one prepared sentence).
It isn't fair to give glowing references. Just good ones.

If you bend over backwards, you create the seeds of resentment. This is business. The shorter everything is the better.

No need to give too much notice now, but you need to be sure, and tell him all the problems, document it, tell him, give him written notice of what he needs to improve.

Then if he does not improve. (some people will) Doing the work well and fast, not always "fitting in" should be looked at.

If you have to let him go, in the winter, do not lie to him, be honest and just let him go.

Thanks all - your advice is really useful. For info, we are in the UK so will be within our rights to get rid of the employee within a probationary period (unless he can claim we have dismissed him unfairly due to some kind of discrimination). He has signed a contract with us but there is a probationary period.

Thanks Oliver, I think you've hit the nail on the head with your comments.