Are your probation and performance improvement plans fit for the future?

UK employers are preparing for significant changes under the proposed Employment Rights Bill, which will reshape how organisations handle onboarding, probation periods, and performance management if enacted in its current form.

Most reforms, including the “day one” right to claim unfair dismissal, are not expected to take effect until autumn 2026, but a crucial question arises for HR teams and people managers: Are your people processes ready for the future of work?

Let’s explore how these processes need to evolve and what people teams must do to meet the challenges head-on.

Impact of day one unfair dismissal rights

The Employment Rights Bill proposes significant reforms by abolishing the two-year qualifying period for unfair dismissal claims. It aims to introduce an “initial period of employment” (likely around nine months), during which a lighter-touch dismissal process will apply for reasons such as conduct, capability, illegality, or some other substantial reason.

These changes will increase legal risk for employers, making transparent and well-documented probation and performance processes crucial from day one.

Our projections, based on the anticipated changes, reveal a potential rise of up to 230% in activity related to probation matters, potentially requiring 13% more employee relations (ER) advisory resources, equivalent to one additional advisor for every eight currently employed. Reviewing and strengthening processes now is advisable to ensure readiness when the changes do come into effect.

Future-proof probation and performance management processes

To future-proof your probation and performance management processes, employers must adopt a more structured, proactive, and inclusive approach from the very start of employment. To stay ahead, HR teams and managers should:

• Initiate strong, values-based recruitment and set clear expectations from the outset to ensure new hires align with your organisational culture;
• Implement consistent onboarding processes, providing new employees with the resources and support they need to succeed from day one;
• Define clear accountabilities and objectives, supported by a robust probationary policy to manage expectations and address issues promptly;
• Support diverse and neurodiverse teams with inclusive, bias-aware practices.

Catch up on our latest insights in our on-demand webinar: ‘People priorities 2025: Manager empowerment and the value of neuro-inclusion’.

The case for rethinking probation and performance management processes

Effective onboarding, structured probation reviews, and robust performance improvement plans (PIPs) are essential for:

• Safeguarding organisational culture;
• Reducing legal exposure;
• Boosting employee engagement and retention.

Future changes demand more than surface-level adjustments. They call for a fundamental shift in how organisations onboard, support, and manage their people.

Fit-for-purpose HR technology bridges manager capability gaps

Line managers are on the front line of shaping performance and culture. Yet all too often, they lack the tools, training, and support they need to manage performance proactively, confidently, and fairly.

While fit-for-purpose HR technology can transform people functions and address manager capability gaps, many HR teams still manage performance data manually, with research revealing over 60% rely on spreadsheets. This creates blind spots, delays, and compliance risks.

By empowering people teams with intuitive performance management tools and real-time insights, organisations can ensure more consistent, confident, and effective people management which improves organisational health and drives success.

HR outsourcing and a standalone ER case management system

Forward-thinking organisations are equipping their managers with everything they need to lead performance conversations with confidence, consistency, and compliance. Our support includes:

• Structured onboarding and probation: Empower managers to set expectations, provide timely feedback, and document progress from day one.
• Guided performance case management: Self-serve tools and guided workflows lead managers step-by-step through the process of addressing underperformance, enabling them to identify early warning signs and implement performance improvement plans to resolve cases successfully.
• Data-driven decisions and fair outcomes: Automated case triggers, standardised templates, and integrated metrics ensure issues are addressed proactively and consistently.
• Inclusive and neurodiverse-friendly practices: Support neuro-inclusive onboarding and probation approaches, helping managers avoid bias and support every new hire effectively.
• Performance improvement plans (PIPs) that work: Structure and track PIPs to drive better outcomes, support employee growth, and maintain legal compliance.

Real-world impact: One organisation partnered with Empowering People Group to manage performance concerns for 284 underperforming employees. 18% of cases were resolved informally, and 46% were successfully addressed through performance improvement plans (PIPs).

Nearly two-thirds of the cases saw positive outcomes without formal action, demonstrating the value of protective intervention and the potential ROI.

Empowering people managers for performance success

To truly empower managers, digital learning provides on-demand access to practical tools, real-world scenarios, and up-to-date guidance.

This enables managers to confidently address performance challenges, support team development, and drive business results, while reducing their reliance on HR for day-to-day issues.

Performance management training courses

An overview of performance appraisals: This course helps line managers approach performance appraisals with confidence. By understanding the purpose and structure of the process, they’ll learn to lead more effective performance conversations.

Ebytes for bite-sized learning

1. The Great Monster Cake Off: Explore how performance can be measured and what you can do to deliver results in a fair, motivating way.

2. Tough Love: Learn how to identify poor performance, address it effectively, and build a culture where everyone can thrive.

Enquire today for more information.

Strategic gains for HR teams

Outsourcing HR expertise and investing in empower® enables your HR teams to focus on strategic workforce planning and leadership development priorities, leveraging data analytics to identify trends in performance cases.

By analysing patterns in metrics such as recurring performance issues, resolution timelines, and the effectiveness of manager interventions, HR can pinpoint systemic challenges, such as skill gaps, unclear expectations, or resource constraints, and implement targeted improvements.

The bottom line? When people managers are equipped with expert HR support and effective performance management tools, they become powerful drivers of employee retention and organisational performance. By building resilient and adaptable teams, these leaders create a high-performing culture where retention and performance strengthen each other, driving sustainable, long-term success.

Ready to modernise your performance management processes?

Employers should act now to ensure they have a structured onboarding process, probation framework, and performance management system in place. This makes a significant difference when combined with the right training and data-driven HR insights to enhance employee engagement, retention and productivity.

Find out more about how our outsourced HR services and HR technology can help you reimagine performance management for today’s dynamic workplace.

Book a demo today to see how empower® equips managers to drive better performance.