HRM for Entrepreneurs

8/22/2019 HRM for Entrepreneurs

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Human Resources forEntrepreneurs

Entrepreneurship 101 for Researchers, MaRS

March 18, 2009

Tammy Sturge, HR Transformations


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Copyright 2006 HR Transformations.

What does a new entrepreneur need to

know about Human Resources?


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What does a new entrepreneur need to

know about Human Resources?

How to hire and fire - and how to pay & manage

people in between


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Topics We Will Cover

Hiring practices

Compensation

Performance appraisals

Policy development

Firing Practices

Relatedlegislation


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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)


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Hiring Practices

Define the job

Job mandate, responsibilities and skillsSearch for a candidate

Post on professional organisation sites workopolis.com - etc. Send to your networks Call possible candidates directly


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Pitfalls:

Hiring someone for their pulse factor Hiring someone today who isnt going to fit into your

organisation of tomorrow

Hiring someone as a contractor who is really anemployee


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Contractor or Employee?

Revenue Canada and our courts make this decision

Has implications for your remittances on CPP and EI,benefits and severance

Isnt cut and dried but are looking for an employmentlike relationship


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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?


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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


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Hiring Practices

Make offer

reference checks background checks offer letter


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Behavioural interviewing

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

behaviour is past behaviour. Does not:

Simply ask about experience Use hypothetical questions


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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 youd 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 demonstratedleadership with people who didnt directly report to you?


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The Offer Letter This is a legal document - but it doesnt have to sound that way Keep it friendly - youre 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


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The Offer Letter Legal addendum can include:

Termination clause Non solicitation clause Non compete clause is optional - not enforceable Confidentiality and proprietary information clause


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Motivating and rewarding employees* Dont micro manage Listen well, acknowledge their

complaints and point them toward

what is do-able

Pay attention to them (Hawthorneeffect)

Find simple ways to recognise andacknowledge them (1,001 Ways toReward Employees)

Dont expect a magic fix Without using money


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Policy

Might want a very slim one after five employees You probably wont need one until about the 25

employee mark

There are templates available for fairly low prices thatcan be easily customized

Or write your own and have a professional check it forlegality


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A performance appraisal process

Have a process - even if its a convo that takes placeover a couple of beers

Its a process not a piece of paper Youll need a standardized process and format as

soon as you have people who have other employees

reporting to them


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Addressing Performance Issues

#1 Principle: Thou shalt manage

performance issues.


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What is a performance issue?

A performance issue is any circumstance that

originates with the employee which prevents them fromsuccessfully meeting their commitments to theorganisation or to their job.

These issues may include: job performance, absenteeism, safetystandards, organisation policies and standards, ethical issues, or

medical conditions.


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Managing Performance Issues - JobRelated

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


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Termination

Just cause ESA versus common law Process


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Just Cause

Employee Misconduct: no rule of law outlining whatdegree 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 theemployee justifies dismissal is on the employer


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Examples of Just Cause

willful misconduct gross incompetence theft fraud conflict of interest serious undermining of the organisations culture serious breach of employer rules and policies (sexual

harassment violation)

non attendance


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Wrongful Dismissal Payments

Employment Standards Act Common law Human Rights Commission


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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


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Questions???

Documents

HRM for Entrepreneurs