Survey Confirms Value of 90-day Trials

6 June 2018

A nationwide survey of businesses and employers has clearly shown the 90-day trial periods has encouraged businesses to hire workers they would otherwise not have, says Canterbury Employers’ Chamber of Commerce CEO Leeann Watson.

"The findings of the survey confirm the view that the introduction of trial periods has encouraged employers to take chances on workers who they might have passed over in the past,” said Ms Watson.

The survey was a collaborative effort by the Employers and Manufacturers Association, Business Central, Canterbury Employers’ Chamber of Commerce and Otago Southland Employers’ Association.

“77% of the nearly 1000 employers surveyed say the 90-day trial period was important part of their decision making to hire a new worker.”

The main reasons cited for using a 90-day trial period were to see if the employee was capable of performing the role, to see how they would fit into the workplace, the employer wanted to give them a go and give the new employee time to learn the job.
“54% of respondents with between 19 and 50 staff said the removal of the 90-day trials would impact the way they hire staff. 90% of employers who have used the trials recommend them,” said Leeann Watson.

“The Chamber is concerned that if this ability to take on workers on a trial period is removed, we will see negative employment outcomes for those on the fringes of the labour market.
“In our submission to the select committee on the Employment Relations Amendment Bill, we recommended the trial period be retained for all businesses. If the committee do insist on removing the trial periods for some employers, we would recommend the upper limit is raised to 50 full-time employees. This would mean most New Zealand employers would be able to access the scheme, and therefore the benefits for disadvantaged workers would be greater.”

“We strongly believe that this tool should be available to as many employers as possible, to ensure those that may not have otherwise had a chance get the opportunity to prove themselves,” says Leeann Watson.

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