Before you think about how to fire this employee, whether she is popular or not, you should think first about how to fire her up. One of the main reasons for the slippage in her performance is the way that she has been managed and rewarded at your company. She has received regular raises over the years, combined with no negative feedback or documentation regarding her performance. If you terminate her now, it is actually unfair to her and the company.
Your next step should be to meet with her and thoroughly review her performance. Show her specific incidents in which her performance was below standard, and then clarify the standards that now must be met. Give her additional guidance if necessary, along with deadline dates for improvement. Let her know that the consequences of continued poor performance will be more severe discipline, up to and including termination. All of this should be in writing, and you both should sign and date the document.
The next step is up to her. In many cases, employees who are given this type of feedback are awakened, energized, and refocused on their work. Hopefully, she will get your message. If not, she will soon be getting a different one from you.
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