Back to Glossary

What Probationary Period?

A probationary period is an initial period of employment during which an employer evaluates whether an employee is a good fit for the role and company culture. It provides both the employer and employee time to assess whether the employment relationship should be made permanent.

On This Page

What Probationary Period?

Ready To Get Started?
Let's Chat

On This Page

What Probationary Period?

Ready To Get Started?
Let's Chat

How Does A Probationary Period Work?

During the probationary period at work, employees typically go through an assessment phase where their performance, behavior, and overall contribution are monitored. Employers use this time to determine if the employee meets the company's expectations, while employees decide if the role aligns with their career goals. 

In most cases, the probationary period lasts for a set time frame, such as 90 days, but the length of a probationary period can vary based on the company's policies and the employment contract.

Probationary Period In Practice 

  • A new hire in a company is typically given a 90-day probationary period. During this time, the employer monitors their performance and provides feedback.
  • If the employee ends up successfully completing the probation period, they are transitioned to a permanent employee status.
  • If the employee’s performance is unsatisfactory, the company may initiate a termination process or extend the probation period.

The Advantages And Disadvantages Of A Probationary Period 

The benefits that probationary periods can provide to both employers and employees are clear. However, there are also potential disadvantages of a probationary period such as job insecurity and stress for workers. Ultimately, a probationary period can provide valuable insights for both employers and employees but must be managed carefully to balance expectations and fairness.

The Advantages Of A Probationary Period The Disadvantages Of A Probationary Period
Employers have a set period to assess an employee's performance, skills, and fit within the company before making a long-term commitment. Employees may experience job insecurity, knowing that their employment could be terminated more easily during this period.
It minimizes the hiring risk as employers can terminate the employment more easily during the probationary period if the employee does not meet expectations, reducing the risk of long-term underperformance. Some employers offer limited benefits, such as healthcare or bonuses, during the probationary period, which may reduce employee satisfaction.
For employees, probation periods give them time to adjust to the role, understand company expectations, and settle into the work environment without the immediate pressure of permanent employment. For some roles, a typical 90-day probationary period may not be long enough for employers to fully assess the employee’s abilities, potentially leading to premature decisions.
Employees often receive regular feedback during this period, giving them the chance to improve their performance and make adjustments based on employer expectations. The pressure of being under evaluation can create stress for employees, impacting their performance and potentially skewing the employer's perception of their true capabilities.

Receiving Compensation During Probationary Periods 

During probationary periods, employees are typically compensated similarly to permanent employees, but the specifics can vary depending on company policies and local labor laws. Employees may have to wait until the probationary period ends to provide full benefits. In some cases, employers may offer employees a raise or a performance bonus to reward them for their commitment. 

For both parties, it’s important to clarify how compensation and benefits will be handled in the employment contract before the probationary period begins.

How To Effectively Manage Probationary Periods As An Employer 

Managing probationary periods effectively ensures that both the employer and the employee have a positive experience and helps employers make well-informed decisions about hiring. Here are a few ways employers can manage probationary periods successfully:

  1. Set Clear Expectations from the Start: Before the probationary period begins, clearly outline the expectations for the role. This clarity helps employees understand what they need to accomplish to pass the probation period.
  2. Regular Feedback and Communication: Provide ongoing feedback throughout the probationary period. This means scheduling regular check-ins to discuss the employee’s progress. This helps employees adjust and gives them a chance to improve based on clear guidance.
  3. Document Performance: Keep detailed records of the employee’s performance during the probation period, noting their strengths and weaknesses. Having documented performance reviews helps justify decisions related to employment, whether that’s offering a permanent role or terminating the employment.
  4. Provide Support and Resources: Ensure that employees have access to the necessary tools, training, and resources to succeed during their probation period. Offering support demonstrates that the employer is invested in their success and helps employees perform at their best.
  5. Have a Clear Process for Decision-Making: At the end of the probationary period, use the documented feedback and performance evaluations to make an informed decision. No matter the outcome, ensure that the process is fair, transparent, and aligned with company policies.

Looking to add global talent to your global team? Playroll is a global employment service that can connect you with talent across 180+ regions, helping you find the best fit for your team. And when you’re ready to hire, we simplify the process, removing red tape and helping businesses stay compliant with leading EOR services.

Probationary Period FAQs

What Happens If I Don’t Pass My Probationary Period?

If an employee doesn't meet the company's expectations during the probation period, the employer may choose to terminate the employment following the appropriate termination process outlined in the employment contract.

What Is The Difference Between A Probationary Period and The Probation Period?

Although the terms probationary period and probation period are often used interchangeably, they refer to slightly different aspects. A probationary period at work refers to the employee’s assessment period, while a probation period can also apply to disciplinary actions taken by the employer after an employee has been hired permanently.

Can Employees Be Dismissed During Probationary Periods? 

Yes, employees can be dismissed during probationary periods, but the specific conditions and processes vary depending on local labor laws and the terms outlined in the employment contract.

How Does A Probationary Period Work?

During the probationary period at work, employees typically go through an assessment phase where their performance, behavior, and overall contribution are monitored. Employers use this time to determine if the employee meets the company's expectations, while employees decide if the role aligns with their career goals. 

In most cases, the probationary period lasts for a set time frame, such as 90 days, but the length of a probationary period can vary based on the company's policies and the employment contract.

Probationary Period In Practice 

  • A new hire in a company is typically given a 90-day probationary period. During this time, the employer monitors their performance and provides feedback.
  • If the employee ends up successfully completing the probation period, they are transitioned to a permanent employee status.
  • If the employee’s performance is unsatisfactory, the company may initiate a termination process or extend the probation period.

The Advantages And Disadvantages Of A Probationary Period 

The benefits that probationary periods can provide to both employers and employees are clear. However, there are also potential disadvantages of a probationary period such as job insecurity and stress for workers. Ultimately, a probationary period can provide valuable insights for both employers and employees but must be managed carefully to balance expectations and fairness.

The Advantages Of A Probationary Period The Disadvantages Of A Probationary Period
Employers have a set period to assess an employee's performance, skills, and fit within the company before making a long-term commitment. Employees may experience job insecurity, knowing that their employment could be terminated more easily during this period.
It minimizes the hiring risk as employers can terminate the employment more easily during the probationary period if the employee does not meet expectations, reducing the risk of long-term underperformance. Some employers offer limited benefits, such as healthcare or bonuses, during the probationary period, which may reduce employee satisfaction.
For employees, probation periods give them time to adjust to the role, understand company expectations, and settle into the work environment without the immediate pressure of permanent employment. For some roles, a typical 90-day probationary period may not be long enough for employers to fully assess the employee’s abilities, potentially leading to premature decisions.
Employees often receive regular feedback during this period, giving them the chance to improve their performance and make adjustments based on employer expectations. The pressure of being under evaluation can create stress for employees, impacting their performance and potentially skewing the employer's perception of their true capabilities.

Receiving Compensation During Probationary Periods 

During probationary periods, employees are typically compensated similarly to permanent employees, but the specifics can vary depending on company policies and local labor laws. Employees may have to wait until the probationary period ends to provide full benefits. In some cases, employers may offer employees a raise or a performance bonus to reward them for their commitment. 

For both parties, it’s important to clarify how compensation and benefits will be handled in the employment contract before the probationary period begins.

How To Effectively Manage Probationary Periods As An Employer 

Managing probationary periods effectively ensures that both the employer and the employee have a positive experience and helps employers make well-informed decisions about hiring. Here are a few ways employers can manage probationary periods successfully:

  1. Set Clear Expectations from the Start: Before the probationary period begins, clearly outline the expectations for the role. This clarity helps employees understand what they need to accomplish to pass the probation period.
  2. Regular Feedback and Communication: Provide ongoing feedback throughout the probationary period. This means scheduling regular check-ins to discuss the employee’s progress. This helps employees adjust and gives them a chance to improve based on clear guidance.
  3. Document Performance: Keep detailed records of the employee’s performance during the probation period, noting their strengths and weaknesses. Having documented performance reviews helps justify decisions related to employment, whether that’s offering a permanent role or terminating the employment.
  4. Provide Support and Resources: Ensure that employees have access to the necessary tools, training, and resources to succeed during their probation period. Offering support demonstrates that the employer is invested in their success and helps employees perform at their best.
  5. Have a Clear Process for Decision-Making: At the end of the probationary period, use the documented feedback and performance evaluations to make an informed decision. No matter the outcome, ensure that the process is fair, transparent, and aligned with company policies.

Looking to add global talent to your global team? Playroll is a global employment service that can connect you with talent across 180+ regions, helping you find the best fit for your team. And when you’re ready to hire, we simplify the process, removing red tape and helping businesses stay compliant with leading EOR services.

Probationary Period FAQs

What Happens If I Don’t Pass My Probationary Period?

If an employee doesn't meet the company's expectations during the probation period, the employer may choose to terminate the employment following the appropriate termination process outlined in the employment contract.

What Is The Difference Between A Probationary Period and The Probation Period?

Although the terms probationary period and probation period are often used interchangeably, they refer to slightly different aspects. A probationary period at work refers to the employee’s assessment period, while a probation period can also apply to disciplinary actions taken by the employer after an employee has been hired permanently.

Can Employees Be Dismissed During Probationary Periods? 

Yes, employees can be dismissed during probationary periods, but the specific conditions and processes vary depending on local labor laws and the terms outlined in the employment contract.

Compare locations to hire remotely

Estimate how much an employee really costs. Use our free employee cost calculator to determine the true cost of employment.

Calculate Now

Unlock Global Hiring Opportunities with Comprehensive Guides

Explore global hiring from the Bahamas to Germany and beyond with our guides.

View Hiring Guides

The Latest HR News 
& Playroll Updates

Stories, insights and advice on remote work and global employment that will transform how you build teams and scale your workforce.

View Blog

About Playroll

Playroll is a global employment platform that enables businesses to hire around the world. Playroll was designed to elevate how you hire, onboard, manage, and pay your global workforce all while ensuring compliance, helping your teams work faster and your business accelerate growth.

Scale the way you work with Playroll, built for distributed teams.

Thousands of companies across hundreds of countries Trust Playroll With Their People. You can too.

More Tools And Resources

Thousands of Global businesses Can't be wrong.

Sign up for free and explore global hiring with Playroll.