Hesson also said it was the "toughest time" of his coaching career.
Kiwi veteran Taylor stepped down from captaincy in all formats in 2012 after he was asked to hand over the limited-overs duty to wicketkeeper-batsman Brendon McCullum by Hesson.
"It was definitely the toughest time of my coaching career," Hesson was quoted as saying by stuff.co.nz on Sky Sports' 'The Pod'.
"I keep going back to the reasons why I coach and many times I ask myself at night – am I making the decision for the right reasons …. because I think it's going to make the team better?" he said.
"It was a really untidy time. But I don't regret the decision, (though) I certainly regret the fallout from it and the way people felt throughout it," said Hesson who currently serves as IPL franchise Royal Challengers Bangalore's Director of Cricket Operations.
Under Hesson, the Black Caps reached the final of the ODI World Cup in 2015.
"I had hate mail poured in the door. I had faeces put on my front door at my house. It was a pretty horrible time and all I was trying to do was what I thought was right for the cricket team at the time," he said.
"There were a number of people who didn't know many facts, who didn't know either Ross or myself, who were very opinionated about things … It was what I felt we needed to do to move the team forward."
Hesson also said there were people within the team who were trying to play both sides.
"I have a lot of empathy for what Ross went through and it was a really difficult time for the whole team. And we also had people within the environment being a little bit snakey around it as well in terms of trying to play both sides," he revealed.
"I still think it was the right decision. Could it have been done better? Of course it could have."