Human Resources for Entrepreneurs

Human Resources for Entrepreneurs

Entrepreneurship 101 for Researchers, MaRS March 18, 2009

Tammy Sturge, HR Transformations

Copyright © 2006 HR Transformations.

What does a new entrepreneur need to know about Human Resources?


What does a new entrepreneur need to know about 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 job   Job mandate, responsibilities and skills

Search for a candidate   Post 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 Practices Screen Resumes   use basic criteria

  possible screening interviews via telephone

Interview candidates   use behavioural interviewing - listen using CAR model

  use rigorous decision-making criteria to make offer


Hiring Practices

Make offer   reference checks

  background checks

  offer letter


Behavioural interviewing

•  A method of asking a candidate questions that uses the principle that the best predictor of future 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


The Offer Letter

  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 that originates with the employee which prevents them from successfully meeting their commitments to the organisation or to their job.”

These issues may include: job performance, absenteeism, safety standards, organisation policies and standards, ethical issues, or medical 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 Cause   willful 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 Process   prepare final cheque

  choose your time and place

  bring kleenex

  make the meeting short

  give time to gather belongings, return keys, etc.

  communicate to the rest of your staff


Questions???

Business

Human Resources for Entrepreneurs