Handling probation in your business when a new hire isn't working out

What do you do if a new hire just isn't working out? In this article I'll guide you through making probation periods effective and fair for your business.

Bringing a new person into your business is always exciting. You’ve invested time, energy, and money into finding the right fit, imagining how they’ll contribute to your team and your goals. But what happens when that initial promise starts to fade, and you realise the new hire isn't quite working out? It’s a common, often stressful, situation for business owners.

Dealing with underperformance or a poor fit during those crucial first few months can feel like a minefield. You want to be fair, but you also need to protect your business, your team’s morale, and your bottom line. I see this challenge regularly in my work with local businesses in Thanet – brilliant business owners grappling with people issues that pull them away from their core work.

This is where comprehensive HR consultancy services can make a real difference.

Let’s look at how a well-managed probation period can be your secret weapon, helping you make confident decisions and build a strong, effective team.

What probation really means for your business

Think of probation as a mutual trial period. It’s not a legal requirement, but it’s a smart contractual tool that gives both you and your new employee a chance to ensure the role and the business are a good fit. During this time, you typically have:

Shorter notice periods: Often just one week, instead of the longer period that comes with permanent employment.
Delayed access to some benefits: Things like private healthcare or enhanced holiday allowances might kick in after successful probation.

However, it's vital to remember that even during probation, your new employee has statutory rights from day one. This includes minimum wage, holiday pay, and crucial protection from discrimination. It’s a trial, but it’s not a free pass to treat someone unfairly.

 

Setting up for success: managing probation properly

The goal of probation isn't just to see if someone fails; it’s to give them every chance to succeed. Here are some practical steps that make a difference:

1. Set clear expectations from the start

Don’t leave your new hire guessing. Provide a clear job description with measurable goals for their first three months. Explain your standards, what good performance looks like, and how their role contributes to your business’s success. This gives them a clear map to follow.

2. Get the basics right with a proper induction

Imagine starting a new job with no idea how things work. It’s overwhelming! A structured induction covering how your business operates, who's who, and essential training sets them up for success. If problems still arise after a good onboarding, you know it’s likely not your process that’s the issue.

3. Review regularly and keep notes

Don’t wait until the end of probation to flag concerns. Hold weekly check-ins initially, moving to monthly as they settle. Document their progress, any issues that come up, and agreed actions. Follow up with written summaries – this creates a clear record and helps avoid misunderstandings.

4. Give them a chance to improve

If you spot underperformance, don't just stew on it. Identify the reasons – is it a lack of training, unclear instructions, or something else? Offer support like extra training or clearer guidance, and importantly, ask the employee what they think would help them improve. This shows you’re committed to their success.

When things still aren't working: making the tough decisions

Sometimes, despite your best efforts, it just doesn’t work out. Here’s how to deal with those trickier moments with confidence and clarity:

Consider extending probation

If you need a bit more time to assess, you can extend probation, usually by one month, but only if your contract allows for it. Make sure you put the reasons for the extension and the new goals in writing. This gives them a final chance to meet expectations.

If dismissal is necessary, follow a fair process

Even during probation, a fair process is key to protecting your business from potential claims. This should include:

• Inviting them to a meeting in writing.
• Clearly explaining the reasons why things aren’t working.
• Giving them a chance to respond to your concerns.
• Confirming your decision in writing, including their final day of employment and any notice period.
• Offering a right of appeal (it’s good practice, even if not legally required).

Strengthening your probation processes now will reduce risk later, especially with upcoming changes like the planned Employment Rights Bill, which may introduce day-one protection from unfair dismissal in 2027.

I'm here to help

Managing new hires, especially when things aren’t going to plan, can be a huge drain on your time and energy. But with the right approach, probation can be a powerful tool for building a strong, effective team that truly drives your business forward.

As an independent HR consultant in Thanet, I support local business owners in handling these challenges. I can help you review and improve your probation procedures, provide training for your managers, and guide you through handling failing probations fairly and legally. This means you can focus on your business goals, knowing your people processes are robust and compliant.

Book a confidential call today, and let’s discuss how we can put practical steps in place to ensure your new hires thrive, helping you build workplaces where people thrive.