Category Archives: Probationary Period

How Do You Manage Employee Probation Periods? Part One

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By setting a probationary period, as an employer, you can let newly recruited employees know that their performance will be under continuous review during the first weeks and months of employment. It also lets them know that their continued employment is subject to them completing the probationary period. This can help you to manage the employee’s expectations and their relationship with you, as their employer.

Length of Probationary Period

The length of a probationary period will depend on the position and your requirements. A role requiring a high degree of skill and responsibility is likely to need a longer probationary period than one with limited skills or responsibility. Probationary periods are typically between three and six months.

You should set out in writing to your employee that the position is subject to satisfactory completion of a probationary period. You should also specify the length of the probationary period, how progress will be monitored and reviewed and that the probationary period may be extended.

It is important for you to set out employees’ roles and responsibilities at the outset and to go through a comprehensive induction process.

It is advisable for you to hold frequent review meetings or one-to-ones with your new employees to provide progress updates, encouragement and support and to identify training needs. If performance issues are identified during the probationary period, you should consider whether or not extra training or coaching would be appropriate, rather than leaving it to the end of the probationary period before addressing performance issues.

Statutory Employment Rights

Probationary periods have no legal status and an employee who is on probation has the same statutory employment rights as other employees. It is the length of continuous service that defines an employee’s statutory employment rights, including his or her rights in the event of dismissal.

Probationers are entitled to:

  • the national minimum wage
  • statutory sick pay
  • rights under the Working Time Regulations
  • annual leave entitlement
  • family-related rights in the same way as other staff.

Dealing with Disciplinary Issues

Employers often don’t apply their formal disciplinary procedure to employees on probation. To avoid ambiguity, where you do not want to follow your full procedure, you should make clear, in writing, in the contract and/or disciplinary procedure, that there is no contractual obligation for you to do so.

As probationers do not normally have sufficient service to claim unfair dismissal, they cannot challenge the procedural fairness of a dismissal in the employment tribunal.

However, a probationer could claim that a dismissal was for an automatically unfair reason or for reasons that amount to unlawful discrimination. Therefore, where an employee on probation is suspected of misconduct, you should investigate further before taking action. If you prejudge the situation and dismiss the employee without going through your disciplinary process and giving the employee the opportunity to explain his or her version of events, this could increase the risk of a claim of unlawful discrimination or automatically unfair dismissal. You will be in a better position to argue that the reason for dismissal was the employee’s misconduct if you investigated the matter and can show reasons behind its decision to dismiss.

Extending the Probationary Period

Where an employee has not reached the required standard of performance by the end of the probationary period but you recognise that there is potential for improvement, you might choose to extend the probationary period. The right for an employer to extend the probationary period should be set out in the contract or offer letter, which should also make clear the terms and conditions that will apply during the extension period.

The extension should be for a reasonable period, taking into account how long it might take him or her to complete an improvement plan. You should discuss your employee’s performance and why you are extending the probationary period with him or her and allow the employee to put forward any explanation for the performance issues.

The extension should be agreed and arranged before the original probationary period ends.

Sickness Absence

Sickness absence during a probationary period will need to be monitored and managed in the usual way. Where the absence is frequent and/or long term, this may make it difficult for you to assess the employee’s performance during the course of the probationary period because of their reduced attendance.

You will need to consider whether to: terminate the contract due to the employee’s failure to complete the probationary period satisfactorily; extend the probationary period to give the employee more time to demonstrate his or her suitability for the job; or confirm the employee in post regardless of the absence.

You should investigate the sickness absence to find out if it is due to a disability under the Equality Act 2010. If it is, but you dismiss the employee for failing to complete the probationary period satisfactorily, they may have grounds to bring a disability discrimination claim. You would need to be able to justify your actions.

In part two of this series of blogs, we’ll look at what to do if all goes well through the probation period and you decide to keep your new employee on. If you need any advice now about how to handle probation periods, get in touch by emailing sueferguson@optionshr.co.uk or calling me on 0118 940 3032.

Improving Performance Through a Probation Period

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Taking on new members of staff for a growing business can be a costly and time consuming process – especially if you get it wrong. Finding the best person for your business is important, and many people think that they can sit back and rest once their new recruit arrives on their first day. But that’s just the start of it!

This blog looks at how to give your new employee the best start with your business.

You worked hard on crafting the best Job Description for your new team member. The adverts went out and the applications came in. You spent time interviewing potential candidates to join your team. Finally you found them – the perfect person to work with you. They even turned up on their start date. What happens next?

If you think you can just sit back and expect your new recruit to get on with their job and perform as you expect them to – with no input from you – you’ll be disappointed.

The first thing to do – even before a new employee joins you – is to decide on the length of their probation period. This could be between three and six months, depending on the type of work being done. The probation period is your chance to start assessing your new recruit; it’s their time to find their feet and get used to their new role. It is a vital tool in measuring the performance of a new employee.

Next you need to plan when you’re going to review their performance, during the probation period. Planning a review halfway through is a good idea – don’t leave it until the end. This allows you to take action if you’re in any doubt about their ability to do the job for which you have employed them. Their performance will only get better if you do something about it. They might not have understood the job that you need them to do, so this is the time to go over what you expect from them. It’s also a good time for them to air any concerns they might have about their future with you.

You should next plan to review the performance of your new recruit before the end of the probation period. This could be after five months, if the probation is six months in length. This gives you time to properly review their performance and plan any action that needs to be taken – such as training or development. This will put you in the best position to be able to confirm whether or not your new recruit will be staying on.

If you decide that they will not remain with you, and your employment contract is correctly worded, the notice period for a new employee is usually less than for someone who successfully completes a probation period. If they have to leave, you can quickly turn your attention to finding a better person to fill their role.

There is no legal requirement for using a probation period at the start of an employment contract. However, it is a very good way of making sure you get the right person for the job, after all the time and effort you put into the recruitment process. Just make sure that your employment contract explains all this and that you discuss the use of the probation period with anyone to whom you offer the job!

What’s the Difference Between Informal and Formal Appraisals?

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This is a question I’m often asked by managers, so I thought I would answer it here.

A performance appraisal can occur in two ways – informally or more formally (or systematically.) Informal appraisals can be carried out whenever the supervisor feels it is necessary. The day-to-day working relationship between a manager and an employee offers an opportunity for the employee’s performance to be assessed. This assessment is communicated through conversation on the job, over coffee, or by on-the-spot examination of a particular piece of work. Informal appraisals are especially appropriate when time is an issue. The longer feedback is delayed, the less likely it is to encourage a change in behaviour. Frequent informal feedback to employees can also prevent surprises when the formal evaluation is communicated. However, you should make sure that they don’t become too informal – don’t be tempted to discuss an appraisal in the pub!

Although informal appraisals are useful, they should not take the place of formal appraisals. These are used when the contact between a manager and an employee is more formal. This could be when they don’t see each other on a daily, or even weekly basis. It requires a system to be in place to report managerial impressions and observations on employee performance.

When Should You Carry out Appraisals?

Appraisals typically are conducted once or twice a year, most often annually, near the anniversary of the employee’s start date. For new employees, common timing is to conduct an appraisal 90 days after employment, again at six months and annually after that. ‘Probationary’ or new employees, or those who are new and in a trial period, should be evaluated frequently—perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new employees. After that, annual reviews may be sufficient.

Some managers prefer to meet with their employees more frequently. Some companies in high-technology fields are promising accelerated appraisals— six months instead of a year—so that employees receive more frequent raises. The result for some companies has been a reduction in turnover among these very turnover-prone employees.

A regular time interval is a feature of formal, systematic appraisals that distinguishes them from informal appraisals. Both employees and managers are aware that performance will be reviewed on a regular basis and they can plan for performance discussions. In addition, informal appraisals should be conducted whenever a manager feels they are desirable.

Should We Talk About Pay As Well?

Many experts say that the timing of performance appraisals and pay discussions should be different. The major reason for this view is that employees often focus more on the pay amount than on what they have done well or need to improve. Sometimes managers may manipulate performance appraisal ratings to justify the desired pay treatment for a given individual.

However you carry out appraisals – whether informally or formally – take some time to think about the pros and cons of the different options. This will help you implement the best process for the development of your business and your employees.