Major work problem with a terrible employee's insurance. What should I do?

So this guy works for me named "John". John has really been slacking over the past two years and I have spoken with him over and over and it always gets better for a month and then nothing happens. Clients are always complaining and my other employees as well.
Well he has two twin daughters, ages 6 that both have Diabetes and his wife doesnt work. So they depend so much on "John's" insurance or they couldnt get proper medical help.
So basically that's why I have such a hard time letting "John" go. It would kill my conscience and I would feel guily. But I have given him chance after chance and no change. He isnt slacking b/c of his daughter's....he's just always on the phone laughing with friends and taking three hour lunches and always missing work to go on vacations and playing golf and solitare on the computer. But i feel bad for the guy!

Any suggestions???
Thanks guys!

The company provides the insurance thorugh CIGNA.

Under Federal law (COBRA) he'll still be able to receive benefits . . . he'll just have to forgo the employer contribution and pay all the dues.

Most states have children's insurance available -- they can apply for that.

I would basically tell John that the only reason his *** is still employed is because you feel bad - but you can no longer put the benefits of his children over the benefits of your company and other employees. Either it's a permanent change or it's buh bye dear John.

Until you decide for yourself that your business is more important to you than your guilt over this slacker, you are up the creek. You are screwing your other employees, your clients and yourself. If you fire the guy, he will be able to continue his insurance under COBRA for a year and a half (at his own expense) which is plenty of time for him to find another job with medical insurance.

However, you may have screwed yourself if this guy is in any kind of "protected class" because you really haven't addressed his performance problems over a long period of time.

You seem need to get some training on how to handle performance issues also or hire a tougher manager to deal with these types of issues.

John is repsponsible for his actions you are not running a charity service for his benefit are you?

Suspend him for a week and see if he gets the picture. Sit him down and show him documentation of every instance you caught him at. You need to keep records of such things and show him that you are keeping tabs...

Explain this is your business and you value all your workers and the needs of their families but you need good workers. Site your problems with him, show him the documetation and then explain you are suspending him for a week without pay. He then can return to work if he chooses, but only if he realizes that he will be on probation for the next year. You will do weekly or monthly reviews with him to discuss his performance and lack there of...and at any time he is caught playing solitaire, talking on the phone (does he even need to be on the phone to do his job?), clocks in late coming and going from lunch (make him punch or keep a time card with the receptionist), or misses work in the next year....then you will have no choice but to let him go.

Lay it out for him verbally and on paper...so there are no misunderstandings.

Then it is all up to him and your no longer the bad guy.

Hope you've documented all the "talks." By now it should have escalated to writing in the guy's file, and his performance evaluations should have suffered.

It sounds to me like any other employee would have been terminated by now. I understand the other employees' gripes. They see, more clearly than you, the unjustness of the situation. To not terminate him because of his family "reason" is unjust to the other employees, and the only thing "John" learns, is that he can get away with murder.

You should try suspension to show you are serious, but tell him in writing this time that he gets no more chances. One more infraction and he loses his job.

It's his duty, not yours, to provide for his children. He can continue insurance on the kids through COBRA, and if he can't do that, there is always CHIPS. And he can find another job. If the kids get bad enough and poor enough, they may be able to get SSI and medicaid.

Bottom line, he's not going to free fall. There are nets to catch him.