Significant dates for new employees:-
Now you have completed your interview process and selected your new employee it is important to manage some critical dates. These include induction, probation and confirmation of the new employee. A very important step is to set a probation period for the new employee and for that length of time and the process to be clear to them.
Length of probation period:-
The length of the probation period and the terms around it should be set out in the terms and conditions of your employment and then be managed carefully. A ‘probation period’ is usually a three month period (based on calendar months) from the date of commencement of employment where you assess the suitability of the employee for the role and the employee has the opportunity to settle in and to determine if the role meets their needs. A key thing to remember is the probationary period must be set in advance and must be reasonable. Three months can be suitable for some roles but for a more senior role you could have a probationary period of six months (as long as there are reasonable grounds for this). For a ‘small business’, i.e. less than 15 employees by head count and including associated entities (see s.383 of the Fair Work Act), the period can be increased to twelve months.
Why have a probation period:-
The probation period is a time when you can validate your selection and ensure there is a good fit between the new employee and the job. It is a time when there should be communication between you and the new employee and some assistance given to them to settle in. In essence, an employee on probation has been appointed but not yet confirmed in a permanent role. The purpose of a probationary period is to provide:
- Time for induction / onboarding and training
- An opportunity to assess the employee and their ability to perform in the job
- Time to assess fit into your business
Regular feedback to the new employee is important and should be provided throughout the probationary period.
What are the benefits of a well managed probation period:-
- allows the new employee settle into the workplace
- provides a focus for you and the new employee on what knowledge and skills are required to be developed during probation for them to succeed in the job
- provides some structure for the new employee on the key aspects of their job and the key people they will be interacting with
- allows you to give and receive feedback on a new employee’s progress during probation.
If you are generally happy with the performance of your new employee but continue to have a few concerns at the end of their probationary period, then you can extend the probation via a review on or before the end of it. You will also need to provide information in writing, detailing the period of the extension and the areas which require improvement. Provided you act sensibly, you can let the person go if they are not working out without having to carry out the usual disciplinary procedures once an employee is confirmed.
Review the new employee’s progress regularly and provide them with feedback so they know how they are progressing – either with praise or with explanations as to where improvement is required. We think it is a good idea to do a Probation Review at the mid point of the probation period.
Overall, the probationary period is an excellent tool to ensure that the new employee is performing in the way you want and is motivated, committed and happy working with you and your organisation. It allows you to be fair and highlight areas which require improvement, and it provides time and scope for the new employee to improve in those areas. The result should be that at the end of the period, the decision to continue or not is easy and clear for both parties.
Confirmation of appointment:-
As the probationary period nears its conclusion, you need to decide whether you wish to retain the new employee or not. If you do, then confirmation of appointment is the process used to end a probation period and appoint an employee permanently. Ideally, a letter is given to the employee confirming the date their probation period ended and affirming the details / conditions previously agreed upon of their employment. The letter states that the employee's performance has been satisfactory and it confirms the employee's appointment to the job. It is good practice to give your new employees a confirmation letter when they successfully complete their probation but it also provides affirmation to the employee that they are doing well in their role and have peace of mind that their job is now confirmed.
Is this something that could be an issue at your place? Inspire Success is all about implementing practical solutions that help create high performing workplaces which are customer focussed and free of conflict - no matter what size your business is. Contact Inspire Success for further information - kate@inspire-success.com