90-day trials help businesses take on staff

  • Kate Wilkinson
Labour

New research showing the Government’s 90-day trial period is encouraging business to take a chance on new employees has been welcomed by Labour Minister Kate Wilkinson.

The study, undertaken by the Department of Labour, shows that more employers had used trial periods (60 per cent) and 40 per cent of employers who hired someone on a trial period would not have taken that person on without it.

The majority of employers – 80 per cent – retained their staff once the trial period was over.

“Research by NZIER has previously told us that 90-day trials led to 13,000 new jobs in small and medium sized businesses,” Ms Wilkinson says.

“This latest research confirms trial periods allow employers to take on new staff, with the majority retaining their staff after the trial period is over. That’s great to see.

“The 90-day trials have beenespecially beneficial for young people and the long-term unemployed. It'sof clear benefit to both employers and employees.”

The research also shows employers view trial periods positively, with around 70 per cent intending to use them in future.

The 90-day trial period was introduced to small and medium enterprises in 2009 and extended to all businesses in 2011.

To view the Department of Labour report, click here.