Probation periods have become more common in contracts in recent years as employers use them as a way to manage performance during the initial stages of employment. The first few months of employment are important for any business but for SMEs they are even more significant as getting a new hire wrong can have a highly detrimental impact both from a business performance and cost perspective.
What Does It Mean When an Employee Is on a Probation Period?
An employee’s probation period is the early part of their employment. Probation periods must be clearly set out in the employee’s contract and typically they last for 3 or 6 months. Unison state that a probation period is, “a clearly defined period at the start of employment for the new employee to settle in, receive a thorough induction, ongoing supervisory support, training and regular reviews, feedback and guidance”.
Probation periods are also beneficial for employees as well. Whilst they are often seen as being in favour of the employer a probation period is also an opportunity for employees to assess if the new job and employer is right for them as well.
Why the Probation Review Process Matters for Employers
Recruiting staff is time consuming and costly for any business and for a small business when resources are already stretched it is vital that a new employee delivers what is needed. From an employer perspective the probation period allows a business to see a new hire in action and to confirm that they possess the level of skills, knowledge and experience that were the basis for recruiting them. In SMEs it is also crucial that new employees fit in as teams are often small and there are well established cultures and practices.
Reviewing performance during the probation period therefore needs to be taken seriously and given due time and attention. A slap dash approach to probation reviews often leads to issues being ignored or going completely undetected which then leads to bigger problems further down the line.
How to Prepare for a Probation Review Meeting
As ever preparation is key when it comes to probation review meetings. There are some key steps to take which should ensure that the meeting runs smoothly and that it is a productive and effective use of time:
Environment – Hold the review meeting in a quiet, comfortable setting so that the employee is relaxed and allow enough time for the meeting to be meaningful.
Purpose – Make sure that you invite the employee in good time and explain the purpose of the meeting so they can prepare as they want.
Discussion Points – Depending on the role you may have performance data to gather, you may also want to collect feedback from colleagues and customers and it is important to prepare relevant questions that allow the employee to explain how they are finding things.
Going into a probation review meeting unprepared is inexcusable and gives a poor impression to the employee about the purpose of the process and how much they are actually valued.
What to Cover in a Probation Review
Every business will have its own specific areas to cover during a probation review meeting but in general terms there are a number of aspects that all such meetings such include regardless of the role or the company. It is vital that employee performance is covered, that could include performance metrics and data as well as anecdotal information from observations. Behaviours and interactions with colleagues should be included as it is important that new employees are becoming aware of the company culture and values during their probation period.
Some employers provide feedback from customers if available and a probation review meeting can also be an opportunity to discuss things that have not gone as well as expected. In addition, employers will talk about training and development and should find out if the employee is receiving all the support they need in order to be successful.
The probation review meeting is a two way street and it is therefore critical that feedback is gathered from the new employee. That feedback may include things like how they found the recruitment and onboarding process, any improvements that could be made to training and support during the initial stages of employment and even general observations about processes and how things work. Employers should be open to receiving feedback of this nature as a fresh pair of eyes can help to drive improvements and innovation. It is useful to confirm a summary of the review meeting in writing afterwards and include any actions as agreed.
The End of Probation Review Meeting
During the probation period itself employers may organise a number of meetings to check in on employees and formally or informally review progress and it is good practice to hold a meeting towards the end of the probation period. In that meeting there will be three possible outcome.
- The probation period is deemed to have been successful and passed.
- The probation period has highlighted some concerns and in order to address them fully and give the employee sufficient opportunity to improve the probation period will be extended for a set period of time.
- The probation period has not been successful and employment is terminated.
In the event of the latter two options neither should come as a surprise and conversations regarding the need for improvement should have taken place before the end of probation review meeting. Whatever the outcome it should be confirmed in writing.
Employee Rights During Probation: Important Changes Coming Soon
Under the Employment Rights Act 2025, the key change is that employees will gain protection from unfair dismissal after 6 months’ service, instead of the previous 2 year requirement.
From January 2027, anyone with at least six months’ continuous employment at that point, so effectively anyone employed in a new role from July 2026 onwards, can bring a claim if dismissed unfairly, meaning newer employees have earlier legal protection. This change impacts probation periods and means that performance during probation must be robustly and effectively managed. Employers should prepare for this now and when issues in probation arise it is vital that they are evidenced and discussed formally with staff so that in the event of termination the risk of an unfair dismissal claim is reduced. Employers may also wish to consider a shorter probation period so that in the event of an extension it does not go beyond 6 months.
The new legislation also removes the cap on compensation awards and allows employees to request written reasons for dismissal after 6 months.
By using HRX software you can track start dates and probation periods and store all employee records and documents securely online so that they can easily be accessed as and when needed. Find out more about HRX at HR Software for Small Business UK | HRX People
