If you are an entrepreneur or have a small business having the proper knowledge about probation period is crucial for setting the right tone of your workplace.
For example, you have hired a new employee, and you are excited about the skills they are going to bring on the table but not sure about whether they are a good fit for your organization or not. Before you onboard them as regular employees, you can ask them to complete a probation period and assess their ability to collaborate and work with the team.
In this article we will discuss all you need to know about the probation period, its importance and how much is required to be paid during the probation period for new hires so that you can be well equipped to build your dream team.
What is probation period?
The meaning of probation period or the trial period is when the newly hired employees are evaluated based on their performance and whether they are suitable for the organization. It is a process of trial run to confirm if the newly hired employee aligns with the employers’ expectations and fits well within the company’s culture and requirement.
During this phase, both the employee and employer can examine each other before making a long-term commitment to the employment relationship.
What is the importance of probation period?
In Indian Labor law there is no mandate about the probation period. However, for industrial demand it is recommended to migrate risk associated with hiring uncertainties.
What are the requirements of the probation period?
There are several reasons behind the implication of probation period in an organization, such as:
- It allows you to gauze the capabilities, work ethics and cultural fit of a new employee.
- The performance standard of the new employee establishes clear expectations for evaluating the employee’s performance.
- By provocatively addressing issues, organizations can minimize potential disruptions and ensure smother project execution.
Let imagine you have hired a recent graduate for the development team. The new hire may excel in different skills based on their interviews, it’s crucial to recognize that they are still acclimating to the work environment and many need guidance on procedures such as code review.
Putting them on probation period ensures their work is mentored by the team lead before going live can help your team going live. This is also acting an advantage to the new hires that they get accustomed with the new work environment.
Rules of the Probation Period
Duration of the Probation Period:
Probation period typically ranges from three to six months, and it depends on the complexity of the role and other rules of the industry. For entry level one to three months may be enough as probation period. The organization must mention the duration explicitly in the offer letter of the new hire.
During this period, it is crucial to track the employee’s progress and conduct regular performance analysis. FlexiEle HRMS will help the manager review and document and data management, identify areas of improvement and ensure a smooth transition into full time employment.
Salary During Probation:
During the probation period, the newly hired employee receives the salary entitled in the company’s offer letter. In some of the companies, the new employee may receive slightly less compensation as per the company’s rule. However, the remaining others offer the full salary that they will receive after becoming a full time employee.
After successfully completing the employee’s probation period, the salary is aligned according to the previous conversation with them.
Applicable Leave During Probation:
Employees working on probation can take leave on the national holiday and other leave as per the company’s leave policy.
There are companies who offer sick leave and casual leave to their employees from the date of their joining, but others may confirm it after they are full time.
Details of the Notice Period:
The notice period which spans from an employee’s resignation letter submission to their last working day, typically lasts 30 days (about 4 and a half weeks) for regular employees but ranges from one to two weeks for employee in probation.
Rule of Resignation during Probation:
The employee must leave the company during probation but also complete the notice period mentioned in the offer letter.
What after the probation period is over?
Once the probation period is completed there are three possibilities that may occur with the employee, such as:
- The employees met the company’s expectations and now they will receive the confirmation letter on their behalf.
- During the new hire assessment if the company found that the new employee needs more training, they might extend the month of the probation period.
- Finally, after the probation period is over and the company thinks that the new hire is not a good fit for the company they might get terminated.
Sample of Probation Confirmation letter
A probation confirmation letter contains the transition of the employee from probation period to permanent period and specifying the revised terms and conditions, including the salary and benefits. A sample of confirmation letter is given below:
Subject: Employment Confirmation Letter
Dear [Employee’s Name],
I am pleased to inform you that you have successfully completed your probationary period at [Company Name]. As of [Confirmation Date], you are now a confirmed employee.
Employee Details:
Name: [Employee’s Full Name]
Job Title: [Employee’s Job Title]
Department: [Department Name]
Start Date: [Employee’s Start Date]
Job Description: Your role primarily involves [briefly describe the employee’s job duties and responsibilities]. We appreciate your contributions during the probation period and look forward to your continued excellence.
Salary Details: Your gross salary remains unchanged at [mention the salary amount]. Additionally, you are entitled to the following benefits: [list any relevant benefits or adjustments].
Feel free to reach out if you have any questions or need clarification. We value your commitment to our organization and wish you continued success in your role.
Congratulations once again, and welcome to the permanent team!
Sincerely,
[Your Name] [Your Title] [Company Name]
Sample of Probation Extension Letter
This document is issued to extend the probationary of the employee beyond the initially agreed decision. The letter has the reason of extension, duration of the extension. A sample of the letter is given below
Subject: Probation Extension: [Employee Name]
Dear [Employee’s Name],
I hope this email finds you well. Following up on our recent discussion, I wanted to inform you that your probation period, which was originally scheduled to end on [original end date], will now be extended.
New Probation End Date: [New Extended End Date]
Reason for Extension: We believe this extension provides an opportunity for further evaluation and improvement. It lets us assess your performance more comprehensively and ensure you have enough time to demonstrate your capabilities.
Next Steps: During this extended period, we encourage you to continue giving your best effort and actively engage in your role. If your performance shows noticeable improvement, we look forward to transitioning you to permanent employment within our company.
Appreciation: We appreciate your dedication and commitment during your probationary period. Keep up the good work, and we’re confident that you’ll make the most of this additional time.
If you have questions or need more clarification, feel free to reach out. We’re here to support you as you continue to grow within our organization.
Best regards,
[Your Name] [Your Title] [Company Name]
Why FlexiEle HRMS can be your best supporter related to probation?
FlexiEle HRMS has some unique features that can help you to get rid of the probation period issues. Some of the features are given below:
- Firstly, FlexiEle offers a comprehensive project plan that outlines each step along with a corresponding timeline.
- An HR consultant will be assigned to you who will support, guide and oversee the entire project. Our commitment extends beyond expectations.
- FlexiEle HRMS provides the capability to map multiple approvers and tailor access level for administrator based on specific requirement.
- We streamline the process by automating workflow for recommending confirmation, extension or termination after the probation period.
- FlexiEle HRMS is here to create a comprehensive probation report that would provide you the insight into employee performance during the probationary period.
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