Based on our recent experience having to fire a newly hired employee, it got me thinking…should we establish a probation program for all new hires?
The idea immediately resonated with me. Maybe because it was my idea;) Don’t get me wrong, it’s not an original idea, as a few companies out there do have formal probationary periods prior to hiring.
The program would be similar to what our friends at Buffer do with their Buffer Bootcamp:
- 45-day probationary period
- An established plan of what success means during at at the end of the probation period.
- Meet with a senior team member (in our case, each of the 5 co-founders) for a 1:1 during that time.
- There would be no benefits granted during this time.
- And, during the probation period the employee gets paid as a 1099 (consultant).
- The action at the end of the probation period; either get hired as a FTE or we part ways.
What Are The Pros?
- It may weed out some folks that know they are ‘talking the talk but can’t walk the walk’, as they say.
- It could save the time and expense of bringing them onto benefits and payroll.
- There is no employee-employer relationship, meaning we may lessen the need for any type of severance and of litigation.
- And most importantly, have more confidence that there is a mutually beneficial business relationship.
What Are The Cons?
- We could lose some very strong candidates who don’t want to jump through the hoops and leave a full-time job to “maybe” get a job. Or just take another job offer that doesn’t have this hoop.
- We may be on the hook to pay them for the full 45 days even if they don’t stick around that long.
- Any more?
After a call with our legal guys and doing some other research, I learned a few things:
- You really have to look at where your employees reside; there are state-by-state regulations to consider.
- In CA if they’re doing the job of a full time employee they should be paid as such. Uber is having a huge issue with that ruling. One way around this could be to set the probationary period up as a set ‘project’ with a specific start and end date (the length of your probationary period).
- A contractor relationship doesn’t guarantee less of a obligation to the worker, nor does it shield you any more from potential litigation. In California, a company like Dasheroo actually has as much, if not more, rights in employer-employee relationships by hiring folks.
So what are we going to do?
It’s always a little murky. Bottom line is we always want to do right by, and respect people. But it’s a two-way street and we take our business very seriously. The difference between hiring an A-player and someone else who may not ‘cut it’ has huge negative affects: the cost of on-boarding, and the lost time you’ll never recover in the productivity you expected.
So, we’re probably going to take a hybrid approach to the situation: continue to hire on a traditional full time employee basis, but start to follow a 45-day plan that mirrors most of Buffer’s probation program. A 45-day on-boarding process with weekly 1:1s with senior team members, a very clear action and progress plan by week, and at the end of the 45 days a meeting with the hiring manager to make sure there’s a mutually beneficial working relationship. Will we go as far as Zappo’s, who we really admire? They actually offer to pay people $2000 to go away after the first few weeks. That practice is ballsy and I love it! But it can also take an HR infrastructure that we, and most other startups don’t have. And it can get costly and abused.
So like I said, it’s a 2-way street, it is incumbent upon our folks to properly vet potential new team members prior to hiring, so many times you can find yourself in a ‘hair on fire’ moment when you just need to fill that gap. Fight that temptation, take a little more time to get to know your potential newest A-player and you’ll win in the end.





o you raised your financing and brought a couple impressive folks on as advisors or board members. That is awesome! But, it’s more than just money and names - your investors and your advisors are there for you beyond that initial commitment, and they need to be. But not necessarily if you don’t ask, as these are very busy people juggling tons of different priorities. If they’re good, they should be juggling, right?!






