Terminations nationwide are down over the past 18 years according to the Bureau of Labor Statistics , as shown in the chart below, where the average turnover rate for employees who have been employed for one year is hovering between 3. If your termination rate is higher, you might consider whether a trial or probation period will help by weeding out less qualified candidates ahead of time, or whether you need to do a better job sourcing candidates.
There are some downsides to a formal employment probation period which many HR experts believe is unnecessary in states that already allow for employment at will.
Some other downsides include:. SHRM provides additional information on risks of using a probationary period.
We also asked employment law attorney Kimberlee Gee, Esq. In effect, they believe they have some due process right that the employer never intended to convey. My opinion is that from a legal defense perspective, if your business is in an at-will employment jurisdiction or you have an employment agreement in place properly designating the employee as an at-will employee, the probationary period is not needed, as the designations can be viewed as being at odds with each other.
While some employers like having a new hire employment probation period, it may not be necessary if your state allows the employment at will doctrine. You may already have the right to terminate an employee without cause, as long as no anti-discrimination or labor laws are violated.
If you choose to institute a probationary period, consider using our template , and having your attorney review your probation period policy before implementing it.
LawTrades provides low cost legal services and can help you find an attorney to advise you on risks to avoid when setting up an employment probation policy in your industry and location.
You must be logged in to post a comment. Skip to content. Legal and Compliance. Then draft and share your employment probationary policy before implementing it, using these steps: 9 Steps to Implementing a Probationary Policy Determine time frame — 30, 60, or 90 days are the most common. Decide on your rules — Will you allow employees to start some benefits now and wait until after they complete probation for other benefits?
What happens if they call in sick during their probationary time period? Will they be provided onboarding? When and how often? Create your policy — Document your policy using our template as a starting point.
Communicate the new policy to staff — Share the new policy and expectations with existing staff, such as providing training, resources, and feedback to new hires. Update employee handbook — Add your policy to your existing employee handbook. Include it in all new hire documentation — Make sure your job ads , interviews , and job offer letter clarify that the new hire will be subject to a probationary period.
Formalize your new hire probation period — Send a letter to the new hire. Letter extending a probationary period. Letter confirming unsuccessful completion of probationary period. Staff Squared records staff probation and lets you know when you need to make a decision about whether the probation has been successful.
Extending a probation period is easy too if you just need a little more time. Already have an account? Log in. Need help? If a small business is creating probationary policies, there are some steps it can take to avoid legal risks:.
Every meeting should be documented. The probation time may be from 30 days to six months, and during that time, the employer will usually make every attempt to help a new employee adjust to the new job. The employer must make sure that the expectations it has for an employee are very clear. The human resource person may meet the new employee regularly to go over a list of expectations, so the employee knows exactly where he or she stands in relation to the job.
The employer may ask the new employee to sign the checklist every week to indicate that he or she understands the terms. The employee should which actions on his or her part could lead to termination during the probation period.
The person writing the letter should outline the substandard parts and make a list of the reasons the employee is not fulfilling the requirements. For example, a person who works in sales may include poor customer service skills or lack of sales. Any pertinent sections of the probationary guidelines should be highlighted. For example, if the guidelines state that the employee must be on time to work and he or she has been late more often than not, it is a clear infraction of the terms of employment.
With a list of infractions, the employer will be able to explain clearly why the employee is being terminated. The employee should be asked to sign the checklist.
The letter should clearly state when the last paycheck would be given and what items the employee needs to return to the company such as phone, computer, keys or security card. It is important that termination letters are not inflammatory.
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