Hiring a new employee takes a lot of time and effort, which makes it all the more frustrating if a new hire resigns – around one in eight Australian employees resign during their probation period – or needs to be dismissed in their first few months in the role.

For smaller NFPs in particular, early turnover can unsettle team dynamics and add pressure to already stretched staff – impacts that are often avoidable with a structured probation process.

So beyond a good onboarding process, what can NFP employers do to ensure new employees succeed?

When handled well, probation is far more than a box to tick; it can be one of the most important tools your NFP has to build engagement, strengthen retention and reduce legal risk.

What probation is, and isn’t

A probation period is a set period of time that acts like a trial of employment.

For NFPs, probation periods provide time to assess a new hire’s capability, cultural fit and performance.

For new employees, it’s an opportunity to determine if the role meets their expectations, and if they feel aligned within the team and organisational culture.

Probation typically lasts 3 to 6 months from the first day of employment, with the length set out in the employment contract or letter of offer. This period should involve:

• clearly articulating what success in the role looks like;
• more frequent check-ins and structured feedback than usual;
• support for learning systems, relationships and ways of working; and
• a clear decision point at the end of the period.

Probation is not intended to be a silent assessment period where concerns are held back until the final review, nor is it a way to avoid a fair process for dismissal.

Probation and the law

It’s important to distinguish between a probation period, which should be part of your employment contracts but is not a legal term, and ‘minimum employment period’, which is defined by the Fair Work Act (2009).

The minimum employment period (MEP) is the period during which a new employee cannot bring an unfair dismissal claim, and depends on the size of your organisation. The MEP is:

• 6 months for organisations with 15 or more employees, and
• 12 months for small organisations with fewer than 15 staff.

Even if your internal contract specifies a shorter probation period, the employee only gains the legal right to claim unfair dismissal once they cross this 6 or 12-month mark, making this period your critical window for assessing their performance and cultural fit.

On the other hand, the MEP means you can’t practically extend your probation period beyond either 6 or 12 months, because the MEP applies to an employee irrespective of what’s in their contract, and at the 6 or 12-month mark the employee can claim unfair dismissal irrelevant of whether they are within their probation period or not.

Why creating a clear probation process is especially important for NFPs

Many NFPs work with lean teams, limited HR capacity and high emotional demands, which means probation can feel like one more thing to manage. But investing in probation often saves HR or senior leaders time later.

Handled with intention, probation supports better retention in the first year, helps identify role-fit issues early, and reduces the risk of either losing a good team member or having to dismiss an underperforming team member, through clearer expectations and regular feedback.

According to Belinda Bounds, People and Culture Manager at Justice Connect – a national NFP focussed on increasing access to legal support – it also protects team stability.

“In smaller not-for-profits, losing a staff member has a disproportionate impact,” she says. “With lean teams, turnover disrupts workload, culture and service delivery, making effective probation processes even more important.”

How to set probation up for success in your NFP

1. Start before day one

Bounds says effective probation starts well before a new team member’s first day: “It’s about getting recruitment right and being upfront from the outset,” she says. “From the very first conversation, we’re open about our culture and the opportunities and challenges people will face.”

Being transparent about what the role will require during recruitment and ensuring position descriptions accurately reflect the work that the person will need to do will help reduce misalignment early.

2. Communicate the probation process clearly

Early clarity can help reduce a new team member’s anxiety and build trust. New starters should understand:

• How long their probation period will last;
• The purpose of probation;
• The goals or minimum KPIs of their probation period;
• How often and when check-ins will occur;
• What will be discussed during check-ins;
• How and when feedback will be provided.

Framing probation as a shared, two-way process rather than an assessment can help to set a more productive tone from the outset.

3. Tie probation to onboarding and allow for a steady workload build

Probation works best when aligned with a structured onboarding process, and a gradual increase in the new team member’s workload.

Start by mapping a 30-60-90-180 day plan that scales in complexity. Include the onboarding period – often the first few weeks – to focus on learning and observing, and then define specific, bite-sized KPIs for each phase, based on the knowledge/skills they need to gain or the outcomes they need to achieve.

This allows you to replace vague “culture fit” anxiety with objective milestones, allowing the employee to gain confidence as their workload ramps up.

This approach doesn’t just protect the organisation – it provides the new hire with clear goals to work towards and prevents the burnout that can follow a “sink or swim” feeling.

Not only can this support the employee’s wellbeing, it also gives managers a fairer picture of capability once the employee is properly established in the organisation.

4. Give clear feedback tailored to the individual

Once expectations are clear and workload is paced appropriately, feedback often becomes the central driver of a successful probation period, helping new starters build confidence, clarify expectations and adjust more effectively in the first months of a role.

Good practice during probation includes:

• Frequent informal check-ins, particularly in the early weeks;
• A mix of informal conversations and more structured review points; and
• Feedback that is specific, practical and linked to expectations.

Bounds stresses the importance of tailoring probation processes to the individual, rather than assuming one approach will work for everyone.

She notes that everyone’s communication and learning styles are different, so having a conversation early about how the new team member prefers to give and receive feedback can go a long way.

“Managers should take time early in probation to understand how each person prefers to receive feedback,” she says. “Co-creating ‘ways of working’ helps build psychological safety and supports different communication styles.”

5. Document key decisions and focus areas

Documentation during probation doesn’t need to be complex. Brief notes from check-ins that record expectations, feedback and any agreed support help to create shared clarity and reduce misunderstandings.

When probation isn’t going to plan

Even with strong processes in place, not all probation periods will unfold smoothly, and that doesn’t necessarily indicate failure. What matters is how early concerns are identified and how organisations respond.

The Fair Work Commission offers a range of resources to help employers manage probation, including template documents for setting up a performance system checklist, managing underperformance, creating a performance improvement plan, and an unsuccessful probation letter.

Early indicators of underperformance may include difficulty meeting core requirements after initial learning time, ongoing confusion about priorities or behaviours that sit at odds with organisational values.

Where probation becomes challenging, Bounds says, early support and honest conversations are often the difference between improvement and disengagement.

“Avoiding difficult conversations early in probation increases the risk of disengagement or performance issues later,” she says. “Sometimes it’s not a performance issue at all – someone might just need more support while they’re settling in.”

When concerns arise, probation should shift into a more intentional support phase. Meaningful support may include:

• clarifying or narrowing expectations;
• additional supervision or training;
• more frequent check-ins; and
• temporary workload adjustments.

End-of-probation decisions

Successful (or unsuccessful) completion of probation should not come as a surprise to the employee. It should reflect an understanding of their performance and/or behaviours  in the role, which should have  been reinforced through clear, regular communication.

In some circumstances, extending probation may be appropriate. For example, where concerns have been clearly communicated and genuine support has been provided, but the employee has yet to adequately address them.

Remember though that while you can extend the probation period, at 6 months (or 12 months for small organisations) the employee gains full legal rights around unfair dismissal, irrelevant of whether their probation is ongoing or not.

However, extensions should not be used to delay difficult decisions or compensate for lack of feedback earlier.

Ending employment during probation is made easier by the legal minimum employment period, but still requires compassion and care.

If you’ve engaged in transparent, early communication, the final conversation should not be a surprise to the employee. Keep it private and direct, framing the decision not as a personal failure, but as a “mismatch in fit” that prevents both the individual and the organisation from thriving.

Include genuine gratitude for the efforts they’ve made, and provide a “soft landing” where possible – this might include offering a transition period instead of an immediate exit, providing a neutral or positive reference focused on their specific strengths, or even pointing them toward roles that better suit their skill set.

By treating the departing employee as a respected peer rather than a checklist item, you preserve their professional confidence and maintain the integrity of your company culture.

And remember that even during probation, organisations must comply with general protections and anti-discrimination laws.

Can existing employees be placed on probation?

Probation applies to new employment relationships and does not reset when an existing employee moves into a different role, even where duties or seniority change. Once an employee has completed the minimum employment period under the Fair Work Act, placing them “back on probation” has no legal effect on their unfair dismissal protections.

For existing employees, you should explore performance management to address performance or support role transitions. 

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