What is a probationary arrangement?

A probationary arrangement is an agreement both an employer and employee share that states the employee will work at a company on a trial period for a certain amount of time. Probationary arrangements last anywhere from three to six months. Most employees during their probationary period don’t yet receive the perks and benefits that other full-time employees have, like health insurance or paid time off. This often varies among employers and companies.

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Benefits of a probationary arrangement

Benefits of probationary arrangements include:

• An opportunity to easily end contracts:The probationary arrangement serves as a temporary contract that the employee or employer is allowed to cancel when needed.If a new hire joins the team, a probationary arrangement allows them to leave without any hassle or negativity if they feel it’s not a good fit.
• A chance to see how well they fit in with the company culture:Matching the company culture is important, as you want all your employees to feel like they work well together. Probationary periods give you the chance to analyze how effectively the employee collaborates with other team members.
• A way to allow employees a chance to improve themselves:For employees who are on a probationary period due to disciplinary reasons or to work in a senior-level role, probationary arrangements are a great opportunity for them to improve their performance and prove how right they are for the role and company.

Instances where a worker would be considered probationary

Common instances where workers are considered probationary include:

Starting out in a new role

Employers often hire new employees to try them out temporarily in their role to see how well they perform. It’s also a great chance for the employee to see how they enjoy the company and employees. If either party believes they aren’t a great fit, they’re able to easily end the contract and pursue other options.

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Receiving disciplinary action

If an employee consistently performs poorly or receives disciplinary action due to misconduct, an employer has the option to put them on a probationary period. They’ll analyze the employee’s performance and conduct for a certain time period to ensure they meet the organization’s expectations and standards before re-instating them back to their full-time employee status.

Switching roles within the company

When you believe an employee could be well-suited for a different position in the company, consider making a probationary arrangement with them to see how well they perform in the new position. If either you or the employee is dissatisfied with their performance or the role itself, move them back to their original position or encourage them to pursue other opportunities.

Earning a higher-level position at the organization

Employees who receive a promotion or supervisory role can be given a probationary arrangement to see how well they manage employees and perform in this higher-level role. If they’re unable to successfully handle the responsibilities within that time frame, you can move them back down to their original position and offer them additional training until they’re ready to try out the role again.