In the ever-evolving landscape of human resources, companies are constantly seeking innovative strategies to improve their hiring processes. One tactic that is gaining ground is offering “tryouts” or “ride-alongs” before extending a permanent job offer. This practice involves providing candidates with a conditional job offer, ranging from a day to a week, to evaluate their suitability for the role.
The Onboarding Challenge
Without an effective onboarding process, businesses risk getting trapped in a costly cycle of turnover. The financial burden of recruiting, hiring, and onboarding a new employee can be substantial, with the average cost-per-hire sitting at a whopping $4,700 in 2022 according to SHRM. On average, companies have 44 days to influence a new hire’s long-term retention. However, 44% of employees report having regrets or second thoughts about their new job within the first week. This highlights the critical need for companies to ensure a good fit from the outset, which is where tryout periods come into play.
What Employers Need to Know If They Plan to Offer a Tryout Period
While companies may be eager to enact tryout periods, there are important considerations for employers to keep in mind before implementing this approach. Understanding the legal and procedural requirements is crucial to ensure a smooth and compliant trial period. Here are key points employers need to know if they plan to offer a tryout period:
- Compensation and Benefits. Legally, a tryout period must be paid time and count toward seniority and eligibility for company benefits and paid time off (PTO). Candidates working on a trial basis are subject to all labor regulations (federal and local) regarding pay and worker classification. Additionally, the employer must have workers’ compensation coverage for all workers.
- Documentation. Proper documentation is crucial. Businesses should have candidates sign an agreement outlining the requirements of the trial period, including the term, expectations, and compensation. This protects both the employer and the candidate and sets clear expectations from the start.
Benefits of a Tryout Period
Tryout periods offer significant advantages for both employers and candidates. By allowing both parties to test the waters before committing, this approach can lead to better long-term matches and a more positive work environment. Here are some of the key benefits of a tryout period:
For Employers:
- Skill Verification. Managers can directly observe whether the candidate possesses the required skills to do the job well in a hands-on situation.
- Reduced Hiring Risks. A tryout period minimizes the risk of investing further time and money into a candidate who may not be a good fit for the company or the position.
- Cultural Fit. Employers can assess whether the candidate aligns with the company’s culture and values.
For Candidates:
- Practical Experience. Candidates get the opportunity to try the role, meet potential co-workers, and experience the company culture in a practical way before committing to a long-term position.
- Informed Decision-Making. This trial period allows candidates to make more informed decisions about their fit and future with the company.
The tryout period is an HR trend that can offer mutual benefits for employers and candidates as long as HR departments navigate the legal and logistical aspects appropriately. By providing a practical evaluation period, companies can reduce hiring risks and improve employee retention, ultimately fostering a more stable and productive workforce.
Guidance from Seay Management Consultants
Seay Management Consultants offers the following guidance to employers who are interested in hiring a qualified job applicant on the basis of a tryout:
- That the individual being considered for employment be hired under all of the company’s current normal hiring practices, including completing an employment application and the regular new hire documentation (I-9, W-4, & state tax withholding, etc.).
- Individuals hired under this scenario must be compensated at minimum wage or above for each hour worked in the week and time and a half for any time worked over 40 hours in the workweek.
- An agreement (signed and dated by all parties) should be drawn to state that the offer for employment is for a tryout period only, the length of duration to be determined by the employer, and the applicant agrees and understands that there is no stated or implied guarantee of continued employment beyond the trial period and that management has complete discretion regarding continued employment.
- That it is understood upon completion of the “trial period” that an evaluation will be made as to the worker’s continued employment and that the trial period may or may not be considered as part of the company’s normal probationary period, such as 60 days. If so, the employee must successfully complete the remainder of the company’s normal probationary period, upon finishing the trial period.
- An addendum should be attached and/or included in the employer’s handbook stating that on occasion, the company may decide to hire an applicant on a trial basis as deemed necessary. This decision will be made at management’s discretion, to determine if a potential job fit is evident and provide the employee with a first-hand view of the position for which they have an interest. Final decision on continued employment will rest with management upon completion of the trial period.
In addition, Seay Management advises that applicants hired on a trial period basis are subject to the same state and federal regulations as all other employees relating to employment law and nondiscriminatory policy and practice. Therefore, the company should regularly monitor the use of this practice to ensure it continues to meet the standards written above.
