Probationary periods are frequently used by employers, and can be invaluable, helping to set clear standards of behaviour and performance. They can also act as a prompt for employers to give employees feedback and support.
A probationary period that is properly managed will not only ensure that you regularly review performance and take the appropriate action if it is not satisfactory, but it will also help you identify and tackle any problems which arise. The resulting benefits are clear; poorly performing employees can be fairly easily managed (out of the business if necessary) and the retention of new starters is improved.
Conversely, a probationary period that is badly managed will not offer the same benefits to the business, and if a probationary period is left to drift you may lose the opportunity to manage out any failing employees quite as quickly!
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