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How long should employees have to prove themselves? Some say it can take as long as 18 months. Here’s why probationary periods can work.
No matter how meticulous your hiring process may be, it’s hard to know if even the most impressive candidates will work out. But, employee turnover is expensive. And, when you have long-standing job vacancies it can be disruptive — hindering productivity for the whole team. So, how can you move forward with a new hire but also protect your business in case they don’t pan out?
Instituting a 30- to 90-day probationary period can help you determine whether or not a new employee is suitable for an open position. To make the most of probationary periods, establish frequent communication, constructive feedback and timely closure — whether that means officially hiring, extending the probationary period or dismissing the employee. Below, we’ll explore how to properly set up a probationary period and determine whether or not it’s right for your company’s hiring process.
Probationary periods are usually 30-, 60- or 90-day periods for new hires. During this time, employers assess their ability to perform in the role and their fit for the rest of the company. It also provides new employees with a chance to get up to speed with the expectations for their role and adapt to the management style of the company.
“Probationary periods, also known as introductory periods, are commonly used when hiring new employees,” said David Wimmer, Labor and Employment Attorney, Partner, Swerdlow Florence Sanchez Swerdlow & Wimmer. “These probationary periods allow both employer and employee to decide whether the new employee is a ‘good fit’ for the workplace and provide a commonly accepted ability for employers to end the new employment relationship.”
How well a probationary period works depends on how it is structured. When creating a probationary period policy, make sure you consider how it affects both you as the employer and the new hire. It’s critical to set up new hires for success during this period — they’ll likely feel like they’re under intense scrutiny. It may not be suitable for all jobs, but for some it is an indispensable tool.
“The probationary period is more appropriately used in settings where employees are not employed at-will,” said Bryn Goodman, Partner, Fox Rothschild LLP. “For example, in a union setting where a union member can only be terminated for cause, the probationary period gives the employer a chance to evaluate the employee and terminate more easily during the probationary period.”
If you intend on implementing a probationary period for your business, consider the following tips to get the most out of it.
Don’t hire based just on a gut feeling. Develop a list of the necessary competencies, and only accept resumes that match them. During the interview process, avoid general “tell us about yourself” HR questions. Instead, probe to learn the candidate’s skill set as it relates to the desired competencies. In many cases, hiring a recruiting firm to do the pre-screening — as long as you are specific about what you need to screen for — may be worthwhile.
Let’s say you’re presented with two or three equally qualified candidates who seem like a good fit for the position and your company culture. Then you can consult your gut.
If your idea of training is a quick overview of what the employee needs to do, you’re setting them up for failure. Foster an environment where asking questions is encouraged.
“Probationary periods give the business and the employer the chance to assess if they are right for each other, like trying before you’re buying. Generally, the process is treated more from the standpoint of, ‘Is this employee right for the business?’ rather than the opposite,” said James Zhong, operations manager at RJ Living. “To get past this hurdle, businesses and managers need to set clear lines of communication and have regular check-ins to ensure that employees feel clear about where they sit in the organization.”
Better yet, assign the new hire a mentor charged with answering the new employee’s questions and addressing their concerns. Mentors contribute to a positive company culture, rich communication and upskilling.
The Society of Human Resource Management (SHRM) estimates every new hire will cost a company $4,700. However, most employers estimate that completing the onboarding process costs them three to four times the position’s salary.
Given these costs, the upfront investment to properly train new employees during the onboarding process is money well spent.
Don’t overburden a new worker with tasks; allow some time for them to get the lay of the land. Once a new hire gains confidence in performing a limited set of tasks, you can expand their responsibilities. To get there, though, it’s important to be clear and specific about what success looks like. This way, new hires can start with defined targets in mind.
“A lack of transparency or unclear goals can leave new hires feeling insecure, which negatively impacts performance,” said Jessica Rivera, international executive coach at JR Coaching & Consulting. “Leaders need to guide with clarity and compassion during this time. What you do with feedback, especially during probation, will set the tone for trust — or lack thereof.”
Involve co-workers to support the onboarding process and beyond. At the start, check in frequently and early to see how things are going, what problems are encountered, and how those problems can best be solved.
Don’t adopt hard-and-fast rules like “90 days or you’re out.” People adjust differently to different kinds of challenges, and some take time to fit into a company’s culture. The best rule of thumb is to ask people who perform similar jobs how long it took them to feel comfortable and competent in what they do.
“Remember, this is also where accountability begins,” Rivera said. “Set and communicate clear expectations from the start and be transparent about performance feedback. Leaders should set the example through open communication in writing and verbally.”
After that period is the best time for you and your new hire to sit down and discuss how things are going. Also, ask what you can do to make sure they are able to accomplish their tasks.
Probationary periods offer several benefits to employers and even new hires, but only if they’re set up correctly. Otherwise, they can pose serious risks and drawbacks to businesses. Here’s what to look out for on both the positive and negative side.
The 30-day probation period gives additional time for the recruit to gain training with the support of management. While the onboarding process involves learning, this additional time is an opportunity for new employees to raise their concerns and ask questions.
A probation period gives the company and the recruit enough time to determine whether they made the right decision. The company can assess the new employee’s skills and determine their suitability for the role.
“The benefits are clear: probationary periods provide a safety net for both the employer and the new hire. They allow time for honest evaluation,” Rivera said.
On the other hand, the employee has enough time to decide if they are ready to take the position. If either party wishes to terminate the contract, they can do so within 30 days.
New employees are often under a lot of pressure to perform exceptionally well out of fear of losing their jobs. These conditions may lower their morale and reduce their confidence in their work. New recruits who work with skilled employees may feel undervalued.
The company and the recruit face risks during the probation period. The company reveals crucial confidential information to an employee who may leave after 30 days. Some organizations have reported theft from their new employees.
Employees also risk injury — especially in manual labor roles — for a job they may not keep. In addition, they face the risk of leaving their current employer only to be dissatisfied with the terms of the new workplace — causing them to leave.
When you set up a probationary period, you create a safety net for your business. But, also, you provide them with a runway to successfully become part of the company. Consider implementing the tips above, like pairing new hires with a mentor and establishing a detailed onboarding process. It will ensure your probationary period is helpful and productive for everyone involved.
Tejas Vemparala contributed to this article.