How Should We Handle a Trainee's Poor Performance and Contract Renewal? Seeking Advice on Terms and Strategies

Performance Management for a Trainee on Probation

I would request the seniors to please suggest what should be done next. There was a trainee who joined our IT company. He was on probation for 6 months but did not perform well and took about 14 leaves during this period. His probation was extended by one month, but there was still no improvement in his performance. Subsequently, he was placed on a PIP (Performance Improvement Plan), but the feedback received is not very satisfying.

The company is reluctant to terminate his employment as it may have a negative impact on existing employees. Therefore, we are considering placing him on a three-month contract. If his performance meets expectations, the contract will be renewed; otherwise, it will be terminated.

Seeking Advice on Contract Terms and Strategies

Is this approach appropriate, or are there other strategies to address this situation? Additionally, what should be included in the terms and conditions of the contract? Any assistance on this matter would be greatly appreciated.

Thanks & Regards,
Neha

Dear Neha, I do not understand why your company wishes to nurture an underperformer. You have given sufficient opportunities to the employee. If the employee does not improve despite availing of these opportunities, then why retain such an employee? Talk to your management to review the decision and terminate.

It should be noted that your company is nothing but a business enterprise and not a rehabilitation center. Your management's worry about the negative impact of termination is also misplaced. In fact, the termination will send a signal to everyone that each employee must perform, or they too will meet this employee's fate.

Thanks,
Dinesh Divekar

"The company is not willing to terminate him or end his employment as it may negatively impact existing employees. We are planning to put him on a three-month contract, where if he performs well, the contract will be renewed; otherwise, it will be terminated.

As per your statement, he/she is already employed with your company on mutually agreed terms, either for training or work. Hence, there is no need to put him/her on a new contract. You have the option of extending the probation period for another 2-3 months.

If the company is not willing to terminate, talk to him/her. Appraise him of the situation, find out why he/she is not able to perform, and give a last chance or encourage him/her to submit a resignation of his own accord and close the file.

If the company is not willing to terminate, discuss with..."

I'm not able to catch your point regarding the status of the appointment. Firstly, she (or he, as you used both) was hired as a 'Trainee' and placed on probation for 6 months, which was later extended by a month, making it a total of 7 months.

My question here is to clarify, was she/he engaged as a regular employee or a trainee? If she/he was engaged as a Trainee, is there a possibility of converting to a 'contract' employee?

Furthermore, when the appraisal reports are 'not satisfactory' (isn't it unbiased and impartial?), the automatic follow-up action is to release her/him accordingly. I believe there shouldn't be any room for sentiments.

Dear Madam,

The concerned employee has continued to underperform despite opportunities given to show improvement. I suggest asking management to revisit the decision and obtain his resignation to finalize the matter.

Regards,
Vinayak Nagarkar
HR Consultant

You may have already taken whatever action you had planned. That is the occupational hazard of attempting to contribute late in the day to a conversation. Notwithstanding that, I have a view on this subject. Hence this post.

Extending the Probation Period

What I find intriguing is that your post says you have extended the probation period by one month. It means what you could not judge in six months you were trying to do in one month! Then put the person on a contract employment. That means the person is on reverse gear in his career. Looks a bit wonky to me.

Performance vs. Attendance

The post again says the person's performance was poor because he/she availed 14 days leave. Was attendance or the quality of performance the real issue? I don't know if the criteria applied in performance assessment in PIP is performance on the job or again attendance, which is an auxiliary issue connected to the job.

I agree with Mr. Divekar that a business enterprise is not a charitable organization. Having said that, I would also hasten to add that HR has the responsibility to monitor the progress of a person who is not measuring up. Talent management is as important as talent acquisition, if not more. Based on experience, I would say this much. Line managers usually have little or no time or incentive to invest their time and energy on a new recruit, especially a perceived indifferent performer. You as an HR representative are expected to closely monitor the progress of the person on the job, especially in a company that is unwilling to sack a poor performer for whatever reason.

Contract Conditions

Now coming to your point on what conditions to be put in the contract. To my mind, it should clearly stipulate, besides the normal conditions of engagement, the need to demonstrate continuous improvement on the job for making the job permanent. Having said that, I still believe the right way of managing this issue is by further extending the person's probation, backing it up with an appropriate monitoring system. The success of recruitment is measured by the successful performance of the person on the job. As they say, the proof of the pudding is in the eating.

Thank you,
Venkat

The situation is really simple, and I wonder why you and your organization are making it difficult. Your organization needs to rethink its priorities.

Addressing Underperformance in Organizations

In an organization that dreams of being happy and successful, there is no room for underperformers. But wait, maybe this poor performance is not solely because of that particular employee. Perhaps there are additional factors contributing to the lowered performance. I hope the respective management and concerned individuals have tried to pinpoint the reasons for this underperformance. If it is primarily due to the employee being dull and apathetic, and you have attempted counseling and motivational techniques without success, then there is no point in extending notice periods. This can, in fact, prove extremely detrimental to your organization:

1) It may send a message to other employees that the company tolerates underperformance, thereby suggesting it is acceptable to perform poorly.
2) It is a waste of time, resources, and a source of increased headaches.

The Importance of Equal Task Valuation

If you are providing opportunities because the employee handles some "less important tasks," let me inform you that you are making a significant mistake. In a thriving organization, every task, every employee, and each rule should be on the same page.

I hope you now have clarity on what needs to be done. Good luck.