My 83 year old employee is not doing well, and I don’t know how to tell her?

If you are going to run a business and hire staff this is all part of the package. How would you handle it if this was a dedicated, 10 year employee who was 43? Do that.

This is a rough one. I would have a list of client complaints prepared and in her HR file. I would also consult with an employment attorney to make sure you are doing everything by the book. As much as you seem to care for her, this is business. Your conversation has to be about how her performance and actions are impacting your business. And you have a documented list of complaints from customers or vendors. Someone with HR experience could let you know if she needs a written warning to improve her performance within a certain timeframe or if you could offer her a different type of position or if it would be better to let her go. It’s not easy being a boss sometimes!

Do you know her family? Can you talk to them? Tell them to get her to retire. Can you tell her you can't afford an employee now. Business isn't good? Or something like that?
She might know she isn't as good as she used to be. I feel bad for both of you.

Is it possible for her to have a non customer facing / contact role? As you don't say what your business does and what she does within it it is impossible to look at options for an alternative role.
If this is not going to be possible, can you reduce her hours on medical grounds?
I think you have to start off trying to be nice and accept this is very important social interaction and feeling needed for her, but obviously your company cannot maintain someone who is having a negative effect.
You could ask your customers what they suggest and be honest with them and see if they can deal with it by going round her, or maybe some work from home.
It is impossible to emphasise enough the need to feel useful in an older person, but equally they need to realise that certain things are becoming beyond them. Try and be positive, sit down with her and have a chat about how she is finding things as well as how your customers are having difficulties - she may actually be keeping going because she feels she owes it to you and would actually like to do less. Until you start having the conversation you won't know how it will go, but don't try and plan it to the last detail - it won't go the way that fits your plan, it never does - just have notes on options and things you want to cover and start with an open mind. Best wishes to you both.

You have to something sooner rather than later. Not only for your business but also her sake. Identify some specific issues, sat down and discuss the problem. Place her on immediate leave with pay. Have your staff organize a retirement party.

Make a list of her disappointing actions and client complaints during the past year or two; be very specific.

Call her into your office and give her a photocopy of the list. Go over it with her, item by item.

Then ask what her thoughts are about this. Ask her what SHE would do if she were the boss and had an employee with a performance history like this.

She may see the writing on the wall and choose to resign.

If you don't want her to retire, is there another position she could do that wouldn't have her interact with clients?

Have you advised her of the client complaints? If you haven't then maybe you should find a tactful way to give her this information. How badly does she need to work - financially? If you have no other choice you may want to find a tactful way to suggest she needs to retire.

I think it is wonderful that you are concerned about her welfare and just haven't fired her.

This is interesting. I have a family member that worked in an office setting until age 80. I suspect there were many of the same issues you mentioned going on. The owner told her they were concerned about her safety getting in and out of the building and that it was a huge risk for all. Somehow she accepted this and retired. The owner gave her a nice retirement celebration. That seemed to work for her. This is a hard topic.

83 and still working but probably some kind of decline.

You are in a business and need to protect that business. If you know the family you may want to warn them that you need to retire her. You need to figure a way of letting her down easy. Be honest, tell her there are numerous complaints and clients leaving because of her good intentions. That you feel its time for her to retire. Give her a severance pkg. Maybe do it as a layoff and then she can collect unemployment.

Save your business and her dignity. Let her resign.

This isn’t a personal matter. It’s a business decision. Can you afford to lose business? Do you want your reputation damaged? Positive word of mouth advertising is fantastic! Negative word of mouth advertising is destructive to your business.

Do you have legitimate reasons to let her go? Would you prefer to give her the option to resign? Are you willing to discuss with her what your customers are telling you? If you discuss the matter tactfully, she will see the position that you are in. Hopefully, she would want to remove herself from her position with your company.

Best wishes to you and your employee.

I’m sorry you are in this position. I employ an 80 yr old. She’s not as sharp as she used to be but still so great I’ll be very sorry when she is gone. Since I don’t know what type of business you have or how big a deal her mistakes were, it’s hard to to comment.
How much extra business do you have because you have an 83 yr old working for you? I’d look for a way to promote her.

Are you able to reassign her to tasks that do not involve client contact?

What kind of actions are displeasing your clients?