Probationary employee: Overview, definition, and example
What is a probationary employee?
A probationary employee is an individual who has been hired by a company on a trial basis, typically for a specified period of time (often ranging from 30 days to 6 months). During this probationary period, the employee's performance, skills, and fit within the company culture are evaluated. The company may assess whether the employee meets the expectations of the role and if they are a good long-term fit for the business. The probationary period allows both the employer and the employee to determine if they want to continue the employment relationship beyond the trial phase.
For example, if your business hires a new customer service representative, you may put them on a 3-month probationary period to evaluate their performance before offering them a permanent position.
Why is a probationary employee important?
A probationary employee is important because it provides the employer with a trial period to assess whether the new hire is suitable for the role and the company. It allows for flexibility, as either the employer or the employee can terminate the employment relationship during the probation period without the complexities of a permanent contract. For the employee, it provides an opportunity to understand the company’s work environment, culture, and expectations before committing to a long-term role.
For SMBs, probationary periods help minimize the risks associated with hiring new employees by ensuring they are the right fit for the job, while also providing time for training and adjustment.
Understanding probationary employee through an example
Imagine your small business hires a new marketing coordinator. The new employee is placed on a 6-month probationary period to assess whether they can meet the expectations for the role, such as completing marketing campaigns, working with the team, and achieving performance goals. During this time, the employee receives feedback, and if they perform well, they may transition to a permanent role at the end of the probation period.
In another example, a restaurant may hire a new chef on a 3-month probationary period. During this time, the restaurant assesses the chef’s cooking skills, ability to work under pressure, and how well they collaborate with the kitchen staff. If the chef meets expectations, they are offered a permanent position.
An example of probationary employee in action
Here’s how a probationary employee might be referenced in an employment contract or policy:
“The employee’s appointment is subject to a 3-month probationary period. During this time, the employer will assess the employee’s performance, and the employment relationship may be terminated with or without cause if expectations are not met.”
Conclusion
A probationary employee is someone hired for a trial period to assess their performance and fit within the company. For SMBs, using probationary periods is a useful way to evaluate new hires, reduce hiring risks, and ensure that the employee is well-suited to the role before offering permanent employment. A clear understanding of the probationary period helps both employers and employees make informed decisions about the long-term working relationship.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.