CLASS SEVEN: ATTRACTING AND MANAGING HUMANRESOURCE CAPITAL

Elikem Nutifafa KuenyehiaManagement Consultant and Corporate Lawyer

• Hand in mid-semester assignment• Mid-term assessment of Class & Lecturer• Recap of Class 7• Attracting & Managing Human Capital• Laws Affecting Human Capital– Labour Law– Social Security & National Trust Law– Workmen Compensation Law– Factories, Offices and Shops Act

2

Ability to attract and retain human capital is one of the hallmarks of successful entrepreneurship

Resources must be spent in identifying, attracting and retaining talent

Dual focus of attracting & retainingExpensive to replace a lost employee

Ability to so attract & retain depends in part on entrepreneurial leadership

3

Entrepreneurial Leadership is inspiring and motivating people. It involves:Setting a vision for the enterprise“selling' that vision to key stakeholders (incl.

employees)Influencing & Inspiring others to work

with the entrepreneur to achieve the visionChallenge employees, empower them and

give them freedom to achieve resultsMust balance empowerment with controls

4

Many start up entrepreneurs want to avoid a wage bill and therefore do everything themselves

Risk is that entrepreneur may not have the relevant skill set to perform some of the rolesShould therefore strike balance between need to

save cost and the importance of getting people with right skill sets to perform the relevant roles

Be creative if you cannot afford to hire F/T employees

5

Hire Part-time employees. Could be people working elsewhere or students (e.g. University students or students doing professional exams)E.g GIJ students writing for magazine; NVTI

students helping out as trainee chefs at restaurant

Outsource certain tasks especially research to university students working under marketing lecturers

Risks include:Potential lack of commitmentPotential loss of confidentiality

6

Do not consider wide enough talent poolLack of rigorous selection/interview processSolo decision making without consultationMicro-manging employees

Could lead to frustration and lack of creativity

Important to have controls & pro-actively manage/monitor

BUT should give some room for creativity & initiative especially in case of highly skilled experienced professional

7

Demonstrate entrepreneurial leadershipCreate a set of beliefs and passionately

pursue themSet the right examples for employees to

follow. Be accountable to same standards as you hold employees

Behave with integrity at all timesRespect and support employeesConstant CommunicationCelebrate success Encourage creativity amongst workersMaintain sense of humour 8

• Don't just hire people you know/are related to– Invest time to find and interview the right people

• Design an organogram, each role with a job description & profile of kind of employee required

• Shortlist a few candidates to interview– Shortlist based on job description & potential

risks• May decide to headhunt. But take references

9

Should put thought and effort into interviewing

Ensure relative standardization of interview Qs to ensure apple-to-apple comparisonAlso, have interview evaluation sheet

Ask questions that will give insight into candidate's qualification, experience & character

Ask open ended questionsAsk for examples/scenarios to determine

whether he can do the jobIf straight out of school, evidence of leadership etc

10

PreliminariesAim is to relax candidate so as to get best out

of him/herDescribe the role & company

QuestionsAsk detailed questions relating to candidates

experienceWrapping Up

Give candidate opportunity to ask questionsReiterate key highlights about role/company –

'Sell Company”

11

A person employed for six months or more must be given a contract of employment

Should express rights & obligations of the parties

Required by law to provide written statement signed by parties of key terms

Should include pay, holidays, sick pay (if any), pension etc

Act guarantees fifteen working days' leave with full pay for every calendar year of continuous service 12

Applies to every employer of an establishment and every worker employed in the establishment

Self employed persons (those who have no other employee but themselves) may opt in

Employers required to deduct 5% of worker's pay and to contribute 12.5% of workers pay

This amount cannot be deducted from workers pay

13