Expert Opinion: Probation periods – should you have them?

Rob Birley, director of Stockport-based HR Consultancy Cornerstone Resources, explores probation periods: what purpose they serve, should you have them and if so, how they can work for your business.

A probationary period is applied to the start of an employee’s time with you. Typically its 3 to 6 months in duration and, when used well, it gives both parties (employer and employee) the opportunity to assess whether they are a fit for each other. Too often, they are used badly and there has recently been a big move in the HR world to either get rid of them or rebrand them. The logic behind this is that the term ‘probation’ has negative connotations. Being ‘on probation’ has criminal overtones and is therefore a bad way to start an employment relationship.

They also have a bad reputation due to the reality that the process itself is often badly handled. How many times have we heard of new employees being shown to their desk and expected to get on with it? Then the employee gets largely ignored for months and is dismissed after 6 months due to an unsuccessful probationary period? It may sound unlikely but I’ve seen it happen.

Stories like this have caused some companies to remove probationary periods from their contracts and confirm employment from day one. Whilst this may feel more welcoming and inclusive, I believe it is a case of throwing the baby out with the bathwater. I’ll explain why…

In defence of probation periods

The concept of a well run probationary period is to help someone settle in to a new organisation. The key here is to ensure that it is implemented consistently. This means the following should take place:

• A detailed induction programme where the employee meets key contacts in the business and knows who to speak to in order to get things done.
• Clear measurable targets that take into account the fact that no one ‘hits the ground running’ – no matter how experienced you are, there is always a period where you are less productive as you learn how things are done in your new company.
• Regular check ins to ensure that the new starter feels supported in their role and has been given the tools to perform their role well.
• Evidence based feedback, both positive and constructive. This should be backed by facts and delivered in a timely fashion.
• Major issues are dealt with formally and notes are taken. Don’t store them up until the end of year review!

What it doesn’t mean is that you treat employees less favourably just because they are in probation.

Closing off probation

At the end of the probationary period, its important to have a review to summarise how the time has gone and performance against objectives. Once both the manager and employee have presented their views and evidence, there are 3 decisions open to the manager.

• Confirm that probation has been successful (best to confirm in writing although its not necessary).
• Extend probation once for a max 3 months. Set clear improvements required and if they are not achieved proceed to…
• Confirm that probation has not been successful and dismiss with notice. Currently you don’t need to provide an appeal option but that’s your call. It may change over time.

Why are they important now?

The Employment Rights Bill promises to introduce day one rights from 2027. This means a fair process must be followed in order to dismiss an employee or you will risk a claim of Unfair Dismissal at the Employment Tribunal. To date, employees have needed 2 years service to be able to claim unfair dismissal. This has, slightly erroneously, caused some employers to believe that you can easily dismiss someone with less than 2 years service. This isn’t entirely correct as if there is a discrimination or whistleblowing element to the dismissal, there could still be a claim.

The Government are talking about a ‘statutory probationary period’ with a less onerous dismissal procedure being introduced into the Bill. This will likely last 6 to 9 months. So this seems like an ideal opportunity to put a robust probationary process in place to ensure that you properly evaluate suitability. The House of Lords are trying to change this to a 6 month qualifying period for unfair dismissal, which would be eminently more sensible, but this amendment is unlikely to be accepted by the Commons given many statements by Peter Kyle, Secretary of State for Business and Trade, confirming that the ERB will be passed in full.

In summary

What you call the probationary period is up to you. However, my strong advice would be to have a mechanism to properly evaluate suitability. Given the impending changes to employment law, I’d start work on it sooner rather than later.