What to do if a new hire isn't working out

Sometimes a new hire may not meet expectations, even after a thorough recruitment process. This can lead to challenges and frustrations all around – for you, the employee and the broader team.

As a hirer or manager, it’s essential to consider your legal obligations as well as ethical considerations to get the best outcome for all involved.

It’s normal for a new hire to take some time to get settled in, but sometimes there can be signs of a deeper mismatch. These include:

• Poor performance: This is where they don’t meet the expectations of the role, such as missing agreed KPIs or submitting work that’s not up to standard.

• Cultural misalignment: They might not fit into the team or contribute to meetings, or have issues with attendance and tardiness.

This might happen for a number of reasons, says Leah Lambart, Career and Interview Coach at Relaunch Me. “Going right back, inconsistencies in the recruitment process can cause these problems. Perhaps the job description wasn’t right for the role, a candidate’s skills weren’t properly assessed or references checked,” she says.

There might also be issues in the onboarding or training process. Sometimes, people might just take a little longer to adjust to a change – in these cases, it may help to offer additional support or extend their probationary period, if you can.

Employers have different legal requirements, depending on location in Australia. Beyond this, there are also ethical considerations, so you’re doing the right thing by the employee and broader team.

In Australia, an employee can’t bring an unfair dismissal claim unless there’s been six months of service, or 12 months for a small business, advises Andrew Jewell, Principal at Jewell Hancock Employment Lawyers.

This means if an employer wants to terminate an employee contract within the first six months, their main legal obligation is to ensure they’re not acting for an illegal reason. For example, the making of a complaint on traditional discriminatory grounds, such as pregnancy.

While there isn’t a legal obligation to follow a fair process during this time, Jewell says it’s good practice to give a new hire the chance to improve through performance management. In some cases, this also offers legal protection as there’s documented evidence of dissatisfaction.

Often, a new team member may not even know they’re underperforming. Rather than waiting until the end of their probationary or trial period to flag issues, start the conversations early to give them time to make changes.

This could include regular weekly catch ups where you set goals together for the week ahead, talk through expectations and create a feedback loop at the end to field questions. Managers should make themselves available and invest time into supporting new hires, along with enlisting others in the team to help too.

To start, speak to your internal HR team. If your business doesn’t have HR, you could seek advice from an external HR consultant or employment lawyer familiar with the legal requirements and best practices where you’re located.

Jewell suggests getting advice early on to make sure you’re following the right processes. “It’s much more costly to fix a problem than it is to prevent one,” he advises.

Businesses in Australia can also consult the Fair Work Commission and Fair Work Ombudsman for resources.

It’s very costly when a new hire doesn’t work out and you have to re-recruit, so it’s important to look at your processes and see where things broke down, advises Lambart.

This could be how you:

• Advertise roles eg. job ads

• Ask interview questions

• Structure the interview process

• Verify that candidates have the required skills

“If you’re not doing these things then it’s likely you’ll keep hiring the wrong people for these roles,” she says. Take the time to reflect and improve your processes to refine them for the future.

Information provided in this article is general only and it does not constitute legal advice and should not be relied upon as such. SEEK provides no warranty as to its accuracy, reliability or completeness. Before taking any course of action related to this article you should make your own inquiries and seek independent advice (including the appropriate legal advice) on whether it is suitable for your circumstances.