A quick fire overview of things to look out for when you're building your team

1. Top Tips for Startups
Allyssa Gregory – HR Director
16th February 2016
Hiring & Firing

2. …is it time to hire?
WHAT SHOULD I DO???

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Hiring is a huge challenge for entrepreneurs
Getting your hiring right as a startup is critical to
your success!
Let’s have a look at some of the key considerations
Select with care!

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Setting out!
• When to hire?
• Are you missing out on opportunities?
• What skills do you need?
• And for how long?!
• Do you need a contractor, or an employee?
• Are you in a financially robust enough position to
employ new people permanently?
• Are you set up to employ people?
• Get the contract ready

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Spot the Difference!
Independent Contractors
• No employment status ; no entitlement to
benefits
• More risk oriented
• Usually dictate from where and when they work
• May work for more than one organisation
• Typically bring their own equipment
• Will submit invoices for work performed
• You won’t be responsible for their tax/ NI.
 Be careful not to treat them as employees – IR35!
 Ensure your contract protects your IP
 Have a solid “Statement of Works”
Employees
• A more “dependent” relationship
• Employees have certain entitlements – e.g.
minimum wage, paid holiday, notice period,
employment rights
• Full-time, part-time, permanent or fixed term
• Employer provides the equipment
• Employer must ensure tax and NI deductions are
correctly calculated
 Ensure you have an employment contract in place
 Define work policies and procedures
 Have a clear job description and set objectives

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What to Pay – Where to Look?
• What can you afford? – but don’t be cheap!
• Take a look at job boards for market salary levels
• Free to access salary surveys on recruitment company
websites (e.g. Hudson); Glass Door
• Go social
• Ask for referrals
• Attend careers fairs like Silicon Milk Roundabout
• Go to networking events
• Use job boards – but be ready to do some filtering work
• If you are going to use recruiters, negotiate HARD!
73% of 18-34 year olds found their
last job through a social network.
(Source: Aberdeen Group)

7. Interviewing – Making the Right Choice
 Plan your interview process
• Who is conducting the interview
• Consider setting a task/ assignment
 Define “wants” vs “needs”
• Skills
• Knowledge
• Competencies
 Sell…but be TRANSPARENT
• Don’t over-promise
• What it is ‘vs’ what it isn’t
 Listen, listen, listen
• Let the candidate do the talking
• Ask open questions; ask for examples
• Be cautious of erratic moves or unexplained gaps
• Does a startup thrill them or terrify them?
 Chemistry Matters!!
• Meet more than once – meet socially
 Take References

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What does a great startup hire look like?
Resilience
Results
Oriented
Passion
Curiosity
Flexibility
Agility

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You’ve Hired! – Now what?
Get all the admin out of the way – payroll, benefits and expense
processes, IT systems, building access and orientation, procedures
Introduce them to the team and key contacts
Be clear in setting expectations – e.g. Probationary Goals, Statement of
Works, Targets – what does good look like?
Engage, embed, lead, develop! – provide support, offer advice, give
feedback, listen, recognise, praise – a “thank you” goes a long way!

10. “I have some bad news…”
WHAT SHOULD I DO???
Dismissing
Redundancy
Conscious Uncoupling?!

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…but keeping the wrong people around can
negatively impact:
• Your other team members
• The potential of the job
• Your business
Letting people go is stressful

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Before you take action!
Personal
Situation
Alternative
role
Training
Need
Clarity of
Goals
Motivation
What’s not
working?
???

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Terminating Independent Contractors
Reasons
• End of a project, no further
requirement for skills/ experience
• Dissatisfaction with performance
• Breach of contract
• …no reason at all…
Process
• Check contractual terms
• Be open and clear about reasons
• Keep the door open!
Steps
• Meet and explain the situation
• Write a letter to terminate the
contract
• Observe the notice period
• Make final payments

14. “It’s OK – she’s only been here for 18 months…”
Under 2 Years’ Service
• You can often terminate an
employment contract with no
reprisals
• There is no requirement to follow
a formal process – redundancy,
disciplinary etc.
• The employee has no access to an
unfair dismissal claim during this
time
BUT WAIT!
• Discrimination protection from
day 1 (age, gender, disability,
pregnancy, maternity, sexual
orientation, gender reassignment,
marriage/ civil partnership, race,
religion, belief)
• Reasons relating to:
 Family related leave or
pregnancy
 Acting as an employee or trade
representative or a pension
scheme trustee
 Whistle blowing
 Part-time, fixed term, pay and
working hours

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Disciplinary Related Dismissal
Reasons
• Poor performance
• Time-keeping and attendance
• Inability to get along with colleagues
• Capability or illness (Be careful:
Disability protection!)
• Gross Misconduct – violence, theft,
bribery, alcohol / substance abuse,
damage to company
Process
• Ensure you have a Disciplinary Policy
in place – and follow it!
• Get your facts straight
• Try to resolve informally
• Invite employee to attend meetings in
writing and with notice
• Outline the issue at hand
• Detail the time and place of the
meeting and who will attend
• Provide the right to be accompanied
to meetings
• Right of Appeal
• Document everything!
Steps
• Dependent on your policy:
1. Verbal Warning
2. First Written Warning
3. Final Written Warning
4. Dismissal
• Summary Dismissal

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Redundancy
Fair reasons
• The role no longer exists because:
 New technology makes a job
unnecessary
 You need to cut costs and reduce
the number of employees
 You need to close the business
Process
• Outline the business case -
clearly explain the reason for
possible redundancy and
selection methods applied
• Invite employee to attend
meetings in writing and with
reasonable notice
• Detail the time and place of the
meeting and who will attend
• Provide the right to be
accompanied to meetings
• Seek to avoid redundancy where
possible
• Provide right of appeal
Steps
• Consultation periods:
 Individual / less than 20 - No set
consultation time period
 20 to 99 redundancies - the
consultation must start at least
30 days before any dismissals
take effect
 100 or more redundancies - the
consultation must start at least
45 days before any dismissals
take effect
• Severance terms/ payments –
notice, holiday pay, redundancy
pay
• Support

17. However you do it…
• Be clear – explain the reasons for dismissal
• Be respectful – this is all about your employer brand!
• Be fair – e.g. calculate final payments carefully
• Keep notes – document everything

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Handy (free) HR Resources
www.acas.org.uk
www.gov.uk/browse/employing-people
www.cipd.co.uk
startups.co.uk/taking-on-staff/

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THANK YOU!
https://uk.linkedin.com/in/allyssa-gregory
@AllyssaGregory
@digicatapult