entrepreneurship 101: hr for entrpreneurs

Human Resources forEntrepreneurs

Entrepreneurship 101 for Researchers, MaRSMarch 26, 2008

Tammy Sturge, HR Transformations

Copyright © 2006 HR Transformations.

What does a new entrepreneur need to knowabout Human Resources?


What does a new entrepreneur need to knowabout Human Resources?

How to hire and fire - and how to pay &

manage people in between


Topics We Will Cover

Hiring practices

Compensation

Performance appraisals

Policy development

Firing Practices

Related legislation


Some Resources:

http://www.canadaone.com/tools/hr_guide.html (free HR

tools)

http://www.labour.gov.on.ca/english/es/index.html (the actual

Employment Standards Act)

http://www.ohrc.on.ca/english/index.shtml (Human Rights

Commission of Ontario)


Hiring Practices

Define the jobJob mandate, responsibilities and skills

Search for a candidatePost on professional organisation sites workopolis.com - etc.

Send to your networks

Call possible candidates directly


Pitfalls:Hiring someone for their pulse factor

Hiring someone today who isn’t going to fit into your

organisation of tomorrow

Hiring someone as a “contractor” who is really an

employee


Contractor or Employee?Revenue Canada and our courts make this decision

Has implications for your remittances on CPP and EI,

benefits and severance

Isn’t cut and dried but are looking for an “employment

like” relationship


Do you have an employee?

Does the person work at your office?

Use your computer and your admin assistant?

Works full-time?

Has only you as a client?

Has been with you for more than one year?

Is paid through your payroll versus invoices?

Do you provide the person with ongoing direction?


Hiring PracticesScreen Resumesuse basic criteria

possible screening interviews via telephone

Interview candidatesuse behavioural interviewing - listen using CAR model

use rigorous decision-making criteria to make offer

Make offerreference checks

background checks

offer letter


Behavioural interviewing

• A method of asking a candidate questions that

uses the principle that the best predictor offuture behaviour is past behaviour.

• Does not:• Simply ask about experience

• Use hypothetical questions


Behavioural or not?1. “Tell me about what you did in your job at the Arts Centre.”

2. “What would you do if a team member stopped speaking to

you?”

3. “How do you think you’d be able to help us with fundraising?”

4. “Do you have any experience developing teen programs?

Can you tell me about that?”

5. “Can you give me an example of a time when you

demonstrated leadership with people who didn’t directly

report to you?”


The Offer Letter

This is a legal document - but it doesn’t have to sound that way

Keep it friendly - you’re welcoming a potential new employee

Attach a legal addendum if you need to

Letter should include:Name & Address

Role, and location of employment

Compensation including any bonuses, perks, special benefits, vacation and holiday time

Legal addendum can include:Termination clause

Non solicitation clause

Non compete clause is optional - not enforceable

Confidentiality and proprietary information clause


Motivating and rewarding employees*

Don’t micro manage

Listen well, acknowledge their complaints and point

them toward what is do-able

Pay attention to them (Hawthorne effect)

Find simple ways to recognise and acknowledge them

(1,001 Ways to Reward Employees)

Don’t expect a magic “fix”

*Without using money


Policy

Might want a very slim one after five employees

You probably won’t need one until about the 25

employee mark

There are templates available for fairly low prices that

can be easily customized

Or write your own and have a professional check it for

legality


A performance appraisal process

Have a process - even if it’s a convo that

takes place over a couple of beers

It’s a process not a piece of paper

You’ll need a standardized process and

format as soon as you have people who

have other employees reporting to them


Addressing Performance Issues

#1 Principle: Thou shalt

manage performance issues.


What is a performance issue?

“A performance issue is any circumstance thatoriginates with the employee which prevents themfrom successfully meeting their commitments tothe organisation or to their job.”

These issues may include: job performance, absenteeism, safetystandards, organisation policies and standards, ethical issues, ormedical conditions.


Managing Performance Issues - Job Related

Respect for the employee throughout

“No surprises”

Usually a series of progressive steps

May start informally, verbally and not documented – just plain old

feedback

Steps become progressively more formal and documented

The employee is told of the consequences of not changing

behaviour

Steps can be skipped

Sometimes suspension or “decision days”


Termination

Just cause

ESA versus common law

Process


Just Cause

Employee Misconduct: no rule of law outlining what

degree of employee misconduct constitutes “just cause”

There is, however, a test to be considered. “Did the

employee behave in a manner that is not consistent with

the continuation of employment?”

Burden of proof of whether the conduct of the employee

justifies dismissal is on the employer


Examples of Just Causewillful misconduct

gross incompetence

theft

fraud

conflict of interest

serious undermining of the organisation’s culture

serious breach of employer rules and policies (sexual

harassment violation)

non attendance


Wrongful Dismissal Payments

Employment Standards Act

Common law

Human Rights Commission


Termination Processprepare final chequechoose your time and placebring kleenexmake the meeting shortgive time to gather belongings, returnkeys, etc.communicate to the rest of your staff


Questions???

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