Using a probationary period effectively

Taking on a new employee is one of the most important decisions family businesses can make. Bringing a new employee into a tightknit workplace is not without its difficulties. However, effective use of the probationary period can assist with business expansion, ensuring the right person is coming on board.

The probationary period commences at the start of the employment relationship, typically lasting for three to six months. During this period, the employee is assessed by their employer and notified as to whether their appointment will be made permanent. 

The probationary period is a really useful tool as it serves as an opportunity to make sure the employer has the right people in its business. This involves assessing the performance of the employee and addressing any issues that may arise.

It is usual for a shorter notice period to be applicable to any dismissals that take place during the probationary period, keeping the cost of any problematic hires to a minimum.

Common pitfalls

Despite being a very useful tool, many family businesses do not take advantage of the probationary period effectively, which can increase the costs and management time required.

Common problems include the following:-

• Failing to set out any specific goals or attainments that are expected during this period and any dates on which progress meetings will take place.
• Failing to record or communicate feedback intended to improve an employee’s performance.
• Failing to gather and consider information on an employee’s performance inside the probationary period.
• Ignoring the end of the probationary period and failing to communicate with the employee at this stage. Unless the contract of employment specifically confirms that satisfactory completion of the probationary period will be communicated in writing, this can mean that an employee mistakenly believes that all is well.
• Ignoring the probationary period entirely.

How to make the most of the probationary period

In order to effectively assess the performance of a new hire, employers should set out any goals and expectations at the start of the relationship. This includes any timeframes within which employees are expected to attain them.

The close-knit nature of many family businesses means that a new hire may not find all expectations obvious at the outset. It is therefore helpful to be as clear as possible in relation to what is required.

During the first few months of employment, employees should have feedback communicated to them on a regular basis. This can not only assist with identifying any problems at an early stage, but also gives the employer an opportunity to offer training and support in order to try and improve matters.

Many employers mistakenly believe that they are able to dismiss any employee with less than two years’ service without the risk of this being deemed to be an unfair dismissal. Employees have many rights from the outset of their employment, for example the right not to suffer discrimination, and meaning any dismissal that is deemed discriminatory will be also be unfair regardless of the length of service.

Keeping a clear record of performance concerns, training provided, and support offered during the probation period can become extremely helpful evidence of the mindset of the employer should an employee challenge the fairness of a dismissal.

Ideally, employers should not wait until the end of the probationary period to identify or address underperformance issues. By this time, it is too late to rely on the favourable notice provisions of the probationary period.

Further, having conversations early on may manage the employee’s expectations as to the outcome of their probationary period. This will remind them that the continuation of their employment is not a foregone conclusion.  

Employers should also keep in mind that it is possible to extend the length of the notice period. This gives the employer the chance to offer the employee the additional support they need to improve performance.

Call to action

The main takeaway for employers should be that active engagement during the probationary period can only benefit their business. At best, the employer will recruit and retain a valued member of the family business, and if not, any issues can be dealt with early on at a minimal cost to the business.

Please don’t hesitate to get in touch with a member of the Family Business team at Brabners to discuss how we can assist you with any of the issues covered in this article.