See here is the thing. And I know i'm going to get a lot of flack for this and probably meme'd. But this is exactly what HR is supposed to be. To be honest I think that HR needs to come back in a form of handling strictly just harassment issues and stuff like that. If HR focused on actually you know the type of things it does in the real world then I think it would be no problem, If we had an HR That is fully functioning and not run by people who got the rank because of a special relationship, then this would be all avoided and this staff member would stay. It is not up to the Owners/Co Owners or even Directors to do this. It is up to the server managers/ head admins. But there comes a time and place when they cant fulfill that responsibility for whatever reason.
My suggestion:
Start up HR again, but for that specific reason only. Harassment bullying and whatever other type of issues there might be. Have a competent person be in charge of it, and solve the issues within the community. Don't give them any executive power to demote or promote people, just let them be the mediators who takes a stand on these types of issues..
Please take this seriously, I am not making an HR meme.
I think this could possibly be a solution.
-David