Any employee announcing his or her intent to leave the organization should be required to submit a formal letter of resignation or complete a resignation form provided by the employer. In the latter instance, the form should give the employer authority to release reference information to future employers. If your nonprofit has such a policy, it should be detailed in the employment handbook. Whether you should give a troublesome employee the opportunity to resign before facing a termination depends on the organization and the circumstances. However, this practice may be inconsistent with your agency's commitment to honesty and consistency in its personnel practices.
Salary freezes .
Freezing an employee's earning power for a temporary time sends the signal that performance is marginal and that more is expected. Salary freezes are useful because they hit the employee where it hurts - in many cases employees who are not performing up to par are oblivious to the employer's serious disappointment. The freeze should be accompanied by on-going performance counseling so that the employee is aware of the expectations placed on him or her for improvement. Salary freezes should always be used in cases where an employee has been suspended or placed on probation. Unless your organization clearly separates performance from wages, whenever there are concerns about performance, a salary freeze may be warranted.