Employee Refuses Confirmation After Probation: How Should I Handle This Situation?

In our organization, probation is for 3 months. After this period, based on performance, we confirm all employees. One of the employees is refusing to accept the confirmation. What should I do in such a case?

Has he submitted his resignation before you confirmed his employment?

After three months, how did you assess her performance? Do you have well-defined criteria, or is it just the manager's judgment? By the way, have you spoken to her? Why is she refusing to become a permanent employee?

Terms of Employment

What are the terms of employment as per the appointment letter issued to her? Though your post is small, one gets the feeling that she may not be comfortable continuing employment in your company. She has been looking for a change, and should the need arise, she would like to quit the company. Possibly, up her sleeves, she already has a job, and she could be waiting for the receipt of an offer letter.

While quitting, she would prefer to take advantage of a shorter notice period rather than a longer one when she becomes a confirmed employee. The probable reasons for making this decision are her lesser compatibility with your organization's culture, uneasiness working with her manager, less cooperation from colleagues, and above all, a job offer with a better salary.

Steps to Address the Situation

Sit with her and try to understand the reasons for her decision. You may convince her to stay, but do not cajole her. If you find the reasons invalid, then you may start searching for her replacement. In the meanwhile, issue her a letter for the extension of the probation period. Once you find a proper replacement, you may terminate her services.

It is important for employees to give their best. What is the use of keeping those employees who wish to work half-heartedly?

Once you find out the reasons, we request you to come back and update us on the latest development.

Thanks,

Dinesh V Divekar

Dear Monica,

I understand that in this market crunch scenario, people seldom reject offers that match their skills and abilities. If, despite the weak market situation, the candidate is not willing to accept a confirmation with the company, there could be a serious issue with the company's culture or the way they treat employees. As Dinesh Sir mentioned, it is possible that he/she is dissatisfied with the company's culture or work role and is anticipating an offer from somewhere else.

I fail to understand how long the person has worked. You mention a probation period of 3 months. The fact that the person denies accepting confirmation (which implies the person has completed 3 months), and then your next post mentions the person has been working for a couple of months. Is it 2 or 3 months? Please clarify.

Well, it's directly indicated that the employee is not satisfied with the job and is looking to move as early as possible when they receive the offer. Additionally, upon accepting the confirmation letter, they will be bound to serve the notice period and cannot move at once after resigning. In such a case, you can terminate them as they may leave the company at any time, causing the work/project to suffer until it is assigned to a new person.

Moreover, if you find the employee to be really talented and do not want to lose them, have a discussion with the employee and politely inquire about what might be wrong. For example, ask if it's related to the salary package or some other issue causing discomfort or dissatisfaction. Try to address the problem and hopefully, you will be able to retain the employee.

Thank you for the reply. The person has been working for 3 months. I spoke to the person about all possible issues such as having an offer from another organization, dissatisfaction with the company culture, or experiencing inappropriate behavior, but nothing of that sort has occurred. Actually, as per company policy, we do not provide a salary hike upon confirmation, and she is insisting that she cannot accept the confirmation without an increase in salary.

Regards,
Monica

Firstly, it is essential to understand that the reasons stated in a resignation letter, exit interviews, or similar situations are not always entirely accurate. If I were in the employee's position, I would not have disclosed that I am expecting an offer from elsewhere. The concern that you might not release me or could give a negative review to retain me puts us in a difficult situation.

Questions to Consider

What is the current salary she is receiving, and how much of a salary increase is she expecting? Why does she require a raise after such a short tenure? Was she verbally assured by someone that she would receive a raise after confirmation? What is the industry average salary for such a position?

Regards

I feel that the employee may have alternative employment opportunities available. Suppose you do not agree to a raise, what will he/she do? By refusing to accept the confirmation letter, the employee has placed the ball in your court. You now have three options: agree to the raise request, maintain the status quo, or begin searching for a replacement. I recommend opting for the last option. This is because the employee seems to have a bargaining mentality, which may surface repeatedly.

It is possible that he/she is using this potential raise as leverage with another employer, playing a strategic game. Another reason for this action could be the employee's understanding of the department's weaknesses and confidence in his/her own performance. He/she might be taking a calculated risk. By taking a tough stance, he/she believes there is a chance of success as the organization may prefer not to go through the process of finding a replacement.

Therefore, it is essential to act wisely and proactively.

@ Couvery,

Actually, as per company policy, we do not provide salary increments upon confirmation, and she insists that she cannot accept the confirmation without a salary hike.

Regards,
Monica

From the details provided by you, she appears to be a tough customer and may want to bargain with the existing and prospective employer. She is standing on the springboard to jump at a time convenient to her, and as Mr. Dinesh said, may pose this situation in the future also. You have three options:

1) If your worry is how to serve the confirmation letter, then serve the confirmation letter in the presence of another employee. If she declines, record her refusal on the letter and obtain the signature of another employee who was present as a witness. That amounts to good service. If needed, display a copy on the notice board. This may compel her to give the required notice period post-confirmation upon quitting and give you enough time to look for a replacement.

2) If she is talented and you want to retain her, as Ankita suggested, negotiate with her about the hike. However, that may not guarantee her retention given her attitude.

3) If you do not concede her request for a hike, in all probability, she may hop on to another job. So keep looking for a replacement as Mr. Dinesh suggested.

Regards,
B. Saikumar

I have a very short fuse for new joiners who think they can push the company around. Even if he/she is a good resource work-wise, agreeing to this sets a bad precedent, and soon you will have almost everyone doing the same. If I were in your shoes, I would not have confirmed the person and would have recorded indiscipline, willful insubordination, or not fitting with the company culture in her personal file notes. I would have given her an extension of probation for one month and explained very clearly what the company expects from her. If there is no improvement on her part, then she can be terminated without notice.

Hope this helps.

Response to Employee Confirmation Issue

I need to give a step-by-step reply to your post. You have written that:

a) I have a very short fuse for new joiners who think they can push the company around. Even if he/she is a good resource work-wise; agreeing to this sets a bad precedent, and soon you will have almost everyone doing the same.

The points raised are quite good and agreeable too.

If I were in your shoes, I would not have confirmed the person and would have recorded indiscipline/willful insubordination/not fitting with the company culture in her personal file notations.

I feel that this is an overreach. All that the employee has done is exercise his/her right to decline to become a confirmed employee. This is his/her fundamental right. This cannot be considered indiscipline or willful insubordination. I am not against removing that person from the job. However, it can be done under the provisions of "disinclination to accept the terms of employment." The terms of employment are to offer Rs ____ salary. The employee in question is not ready to accept it. By declining the employee's request for a raise, he/she can be told to put in his/her papers. That ends the matter.

I would have given her an extension of the probation for one month and explained very clearly what the company wants from her. Failing correction from her side, she can then be terminated without notice.

I did not understand the logic of the extension of the probation period. Either the employee accepts the confirmation or quits. The employee has to exercise either option without delay.

Comments on Employee's Strategy

Possibly the basic problem is that the employee has understood the weakness in the system. With proven high-quality performance, he/she wants to use this performance as a bargaining chip. This could be the cause of the brinkmanship.

For shah01ankita: I am a little surprised to note your appreciation for this post. Generally, you see the posts with a hawk's eye, but how come this anomaly of "willful insubordination" escaped your attention?

Thanks,

Dinesh V Divekar

Just like you, I appreciated the first part of the post. However, the latter part needed some correction, but I was caught up with work and couldn't phrase it right.

After considering the entire process and the possibility that Executor highlighted, it seems that if we grant a hike to the petitioner, other probationers may follow suit, and perhaps other confirmed employees may also cause disruptions.

Hence, it is essential to understand why the person is requesting a raise.

As I mentioned earlier, if the individual is not receiving the industry average, they may feel demotivated and seek to renegotiate their compensation.

Alternatively, perhaps during the interview, they were verbally informed that they would start at X Rs. per month but would receive a salary increase upon confirmation. (This was my experience, and after my probation ended, I had to inform the accounts department that my salary should be increased.)

If these scenarios apply, genuine consideration and reflection are needed on the matter, not just a thorough review of the payroll process.

However, if the individual is simply trying to take advantage of the situation, as Dinesh sir suggested, you can request the person to submit the confirmation letter along with a self-signed letter stating the reasons for rejecting confirmation (whether it's regarding a raise or any other issue).

Subsequently, you can explain that since the company does not have a policy of revising salaries upon confirmation or every few months, the request to increase the salary is declined. The individual must either accept the confirmation or resign.

Typically, once the probation period ends, and even if no document is issued, it is assumed that the employee is confirmed. Unless the employee formally states that they reject confirmation, it is assumed they have no issue with being confirmed.

Seniors, please confirm...

Dear Dinesh, Thanks for your input. The time you have spent and the insights are both appreciated. Without trying to clarify my suggestions, let me share what I had in mind.

Yes, maybe this does not directly come under willful insubordination, but then that's exactly why I suggest a few options with the right to use the relevant sections remaining with the HR. I also gave a few suggestions and there indeed might be many more as your expertise pointed out.

Probation is a period of time wherein both the company and the new joiner evaluate suitability and fitment. And this needs to be seen holistically. A great performer who is bad for the culture, in my book, is NOT a right fit. However, the human part of HR also involves giving chances, and hence, an extension of probation to give the person a chance to correct the attitudinal issues is suggested.

Extension of probation is also not unheard of. In fact, most offer letters/appointment letters I have seen actually mention that 'probation can be extended based on evaluation' as well as unambiguously mention that "completion of the probation period does not automatically guarantee confirmation." Yes, if the company does not inform the employee about an extension of probation with a reasonable explanation, it could be however deemed that the employee is confirmed. Basically, it depends upon the way an appointment letter is drafted, and the interpretation of the case.

I agree that HR needs to be sensitive, but it must exercise its discretion judiciously to ascertain which circumstances call for a sensitive response and which require a sensible response from HR.

Employee Refusal of Confirmation

When an employee refuses to accept confirmation, HR needs to inquire into the reasons for the employee's decision, as it sounds strange and is not normally expected from an employee. This is to determine whether any sensitive issue has compelled the employee to make this decision to continue on probation. Monica has already talked to the employee to ascertain this and found out that the employee needs a raise, and thus is using this as a bargaining tool. In this case, the employee is positioning themselves on one side of the table to negotiate with management on equal terms. Therefore, the management's decision focuses solely on this issue.

Options for Management and Employee

Now, both the management and the employee have one option each:

1. The management can either agree to the employee's request for a raise and negotiate with her. Monica mentions that there is no practice of granting raises upon confirmation, indicating that the management is not willing to consider her request. In this scenario, the management will proceed with confirming the employee as per the procedure, leaving the employee to make a choice. In my opinion, confirmation is the management's prerogative, and non-acceptance of it is not a privilege of the employee. An employee cannot be the judge of their own performance unless the management's evaluation is negative, which is not the case here.

2. The employee can then choose to either continue or resign.

Therefore, I do not believe this situation requires sensitivity or exploring options like extending the probation period (which is all the employee wants) to persuade or allow her to reconsider her decision. Resorting to disciplinary action or termination would be a wasteful consumption of management resources with no clear benefit. Most likely, the management would only extend the probation period if they are not considering a raise as per the employee's demand.

Regards,
B. Saikumar
Navi Mumbai

I agree with Mr. Divekar's post; he has given possible reasons and suggestions. However, in the absence of available details such as the size, type, and location of the industry, the nature and importance of the post, and the availability of manpower in your area, it is difficult to provide proper suggestions. In the case of an SME or service industry, you should check all the points and then decide.

[QUOTE=saiconsult;2084914] I agree that HR needs to be sensitive, but it needs to exercise its discretion judiciously to ascertain which circumstances call for a sensitive response and which circumstances require a sensible response from HR. When an employee refuses to accept confirmation, HR needs to inquire into the reasons for the employee's decision, since it sounds strange and is not normally expected from an employee, in order to know whether any sensitive issue has compelled the employee to take this strange decision to continue on probation. Monica has already talked to the employee to ascertain this and found out that the employee needs a raise and is doing it to bargain for one. This is not a sensitive issue as the employee positions themselves on one side of the table to negotiate with management on equal terms. Thus, the management's decision focuses solely on this issue.

Management and Employee Options

Now the management and the employee have one option each.

1) The management can either accede to her request for a raise and negotiate with her. Monica says there is no practice of granting raises on confirmation, which means the management is not willing to consider her request, and it will go ahead with confirming the employee as per the procedure. This compels the employee to make a decision. In my view, confirmation is the management's prerogative, and non-acceptance of it is not a privilege of the employee. In matters of evaluating performance, an employee cannot be a judge in their own case unless the management's evaluation is adverse to the employee, which is not the case here.

2) The employee then has the option to either continue or quit.

I do not believe this is a case of sensitivity and thus does not require exploring options like extending her probation (which is all that she wants) to convince her or enable her to review her decision or taking a disciplinary route or terminating the employee, which consumes management time and resources for no gain. In all probability, the management would only extend her probation if it is not considering a raise as per the employee's demand.

B.Saikumar Navi Mumbai

There is a keypad error in the first sentence of my last paragraph in my last post. It should be read as "I do not envisage that it is a case of sensitivity."

Error regretted.

B.Saikumar Navi Mumbai