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 the employer, the employee and the broader team. 

As a hirer or manager, it’s essential to effectively manage the situation, considering legal requirements as well as possible ethical considerations to get the best outcome for all involved.

It’s normal for a new hire to take some time to get up and running, but 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 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 be happening 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 their location. Beyond this, there are also ethical considerations to ensure you are doing the right thing by the employee and broader team.

In New Zealand, all employers now have access to 90-day trial periods. Trial periods have strict requirements under New Zealand law, both for their use in the initial stages and when it comes to termination of employment. For example, a 90-day trial period is only available for use with new employees who have never worked for the employer before, and they will only have effect where the employee has agreed to it in their employment agreement before starting work. 

If an employee is dismissed during their 90-day trial period, they cannot bring a personal grievance for unjustified dismissal. However, if an employee is not subject to a valid trial period, the employer will need to follow a fair and reasonable process before seeking to dismiss them.

Employers in New Zealand must satisfy the test of justification, which requires them to have a justifiable reason to terminate employment, and to follow a fair and reasonable process, says Rob McStay, Senior Associate at MinterEllisonRuddWatts. 

“Basically, this means considering what a fair and reasonable employer could have done in all the circumstances, and ensuring you’ve acted in good faith throughout any dealings with employees,” he advises.

In New Zealand, there are four legally valid reasons to terminate employment:

• Serious or repeated misconduct

• Sustained non-performance

• Redundancy

• Medical incapacity.

Regardless of the reason, employers have to follow a proper process.

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 the employee 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 to support the new hire, along with considering if others in the team can help too.

To start with, 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. Getting advice early on to make sure you’re following the right processes can be invaluable to ensure you’re equipped to navigate around problems. 

Businesses in New Zealand can consult Employment NZ or the Ministry of Business, Innovation & Employment (MBIE).

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.