Everything You Need to Know about Probationary Periods

There’s always a slight element of risk when hiring a new employee.

It doesn’t matter how well someone comes across in an interview or how much experience they have, until they start working for you, you have no idea how it will all work out. Maybe they just aren’t the right fit for your business or, worst case, they’ve have professed to be more capable than they actually are. Either way, sometimes you can just hire the wrong person for the job.

That’s why probationary periods are so useful. Not only does it give you time to make sure your new employee is right for the role, but it also gives them time to make sure it’s the right choice for them too.

But what are they? How do you use them correctly? And how can you make the most of them as an employer?

Well, here’s everything you need to know.

What exactly is a probationary period?

Put simply, a probationary period is a trial period at the start of employment where certain contractual obligations don’t apply. In most cases, the notice period is shorter which allows you to dismiss the employee more quickly, or the employee to quit with minimal notice.

However, once the period of time is over, employment commences as stated by your contract.

Probationary periods aren’t a legal requirement and there’s nothing within the law that states you should use them. However they are commonly used by businesses of all shapes and sizes as they protect both you and your new team member.

How long should a probationary period be?

Since there are no laws around probationary periods there’s no set length of time. However, in most cases, you would expect a period of between one and six months – but no longer than that.

What you decide should largely depend on the role, with the more complex and senior positions requiring longer probation. However, the key factor should be how long it will take your new hire to learn the role, take any necessary training and give you a suitable length of time to review this.

While you can choose to have a longer period than six months, it’s worth keeping in mind how this may impact your employee. It may protect your business in the short run, but it signals a lack of trust that may be a red flag for your culture and working environment.

Are contractual rights affected?

Probationary periods do not affect an employee’s statutory rights in any way. That means they must be paid National Minimum Wage or more as the law states and they are still entitled to paid holiday, rest breaks, and are protected from discrimination.

However, when it comes to contractual rights, it’s down to you whether or not they are affected during the probationary period.

Saying this, you will most likely want to change the notice period. As previously mentioned, a shorter notice period makes it easier for you to let go of the employee, or for them to leave, if the role doesn’t work out.

You may also withhold other contractual benefits until successful completion of the probationary period. That could be healthcare, discounts, or any other additional benefit employees receive.

How does the probation process work?

You want to keep the probation process as simple and smooth as possible for everybody involved. So how can you do this?

1. Set clear expectations

You want your new hire to thrive in their role and pass their probationary period with flying colours, so you need to make sure you set them up for success. From their very first day you should set clear expectations and make sure they are aware of everything they need to do their job. This includes:

• Giving them a clear job description – This should be simple as you should already have this created to use in the recruitment process.

• Set short term goals and objectives - These should be things that can be worked on during the probationary period. They should be clear, measurable, and attainable.

• Introduce the business - Tell your new recruit everything they need to know about the company, including general business practices and procedures, and standards of attendance, as well as the repercussions of failing to meet these.

• Outline your company culture - Discuss your company's core values, your mission, and your expectations of behaviour from all employees.

• Plan the right training - Most aspects of any role will need a degree of training, whether it's by shadowing another employee or more formal, external training. Make sure all the necessary training is scheduled and completed.

• Discuss reviews - Explain how you'll monitor and feedback on your new employee’s performance, as well as how and when reviews will take place.

2. Review progress regularly

Regular communication is key when you make a new hire to ensure you stay up to date with how they’re getting on.

As well as regular weekly or monthly 121 meetings, you (or their direct manager) should be offering guidance and feedback throughout the working day. This should be specific, constructive, and should offer solutions rather than simply highlighting problems. You also need to encourage open communication and make sure your new hire is providing insight and feedback on how they are finding everything.

When it comes to 121 meetings, try to gather feedback from those who work directly with your new hire and gain their perspective. Then, during the meeting, go through their progress, explain which things are going well, and be open about areas of improvement. If there are performance issues, be honest and create a plan for improvement. This is what probationary periods are for and it’s a lot easier to address these issues now then further down the line.

If your requirements are being met with ease, add something more challenging to see how they cope. But if they are struggling, make reasonable adjustments so that goals become more obtainable and ask them if there’s anything more you can do to support them. And don’t forget to always give your employee an opportunity to respond to your feedback. There may be a legitimate reason that they’re not meeting your expectations and the sooner you're aware, the easier the issue is to resolve.

Finally, make sure to keep records of all performance reviews, including any agreed actions. You might even want to send a follow up email after the meeting so that your employee has a clear understanding their next actions.

3. Create opportunities for improvement

Your review meetings are the time to work out why things aren't going as planned. If they aren’t you need to look at whether your expectations are too high, if a lack of training is to blame, or it could even be something else altogether.

When you have identified the reason, you can then find a solution and look at how you can get things back on track. Keep in mind that a little patience and understanding can go a long way during these situations.

Also, don't forget to ask your new hire for their input. They might have suggestions that could help them succeed. It's possible that a certain way of working isn't the best fit for them, and that's okay! This is the time to identify these types of opportunities for improvement.

4. Consider extending the probation

If, by the time the end of the probationary period rolls around, your employee isn't quite where you would expect them to be, you can extend their probation if you think that will help. It may be that you think a little more training would help them hit the mark, or perhaps other factors have interfered with progress, like absence, for example.

In these cases, extend probation by a short period, like a month. Confirm this in writing with your employee and state the reasons for your decision.

5. At the end of the probationary period

Once the probationary period is over (including any extensions), you will need to send a confirmation in writing to your employee telling them whether they passed or failed.

If they pass, congratulations all round! It means they’re an official member of the team, all contractual benefits come into effect, and they'll be given a new notice period.

If they fail and you've given them a fair opportunity to improve, you'll need to set out the next steps. You might decide that they’re better suited to an alternative role in the business or you it might just be they’re dismissed.

N.B. in some cases, a probationary period may be failed due to poor behaviour or conduct. Here it is appropriate to follow your disciplinary process, discussing it in your reviews. If the behaviour is classed as gross misconduct, your policy should cover dismissal. It's important to follow your standard fair dismissal if you reach this stage.

When probation has failed, you can move on to your dismissal procedure. You will need to invite the employee to a meeting to review probation, and state that dismissal is a possible outcome. Set out the reasons why they've not successfully completed their probationary period and allow them the opportunity to present their case. Finally, provide a letter confirming the dismissal and offer an opportunity to appeal.

Do not skip this process!

While an employee with less than two years’ service doesn't have unfair dismissal rights, they can still claim ‘automatic unfair grounds’. If you don't follow your dismissal procedure this will be automatically unfair, according to the law.

Final Thoughts

As well as making the entire process as clear and simple as possible, there are some other ways to give your new hire the best chance of getting things off on the right foot.

• Make sure your managers are all on-board with the process. They should understand the standards set and the expectations upon the new hire in order for them to pass probation.

• Your managers are managers for a reason - they do a great job and support others to do the same. Make sure this extends to your new employee, especially during probation when they may require extra support.

• It will also be up to your managers to ensure your new employee feels confident to approach them for guidance, with an issue, or for anything else. That will mean they need to be approachable, welcoming, and trustworthy, while encouraging open, honest communication with everyone.

• One of the best ways to ensure a successful probationary period is to provide a great induction for your new employee. Give them the grand tour, explain everything clearly and concisely, and provide all the training they need, as well as giving them all the tools they'll need from day one.

Finally, if you have any concerns or questions about hiring new staff, probationary periods, or onboarding, there’s plenty of professional advice available. There's a lot that can go wrong when it comes to employment law, so it's better to be safe than sorry!

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