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We've just let one of our junior designers go since she hasn't been meeting our expectations...though she's been trying; she's just very green and isn't getting it.
It's tough because she has a great attitude, but came with a lot on her plate for someone so young (that will ultimately make her stronger) which I suspect is affecting her work so we're helping her create a stronger portfolio that hopefully gets her in the door with some other firms where she will be a better fit. To ensure this doesn't become a drain, we are gradually dialing back her hours. Not our typical procedure by any means, but it just felt right.
She took it well and is very appreciative.
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