Top Hiring Mistakes - Legal Perspective - Do's and Don'ts

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The most common hiring mistake is to hire (and even fire) employees like buying (or upgrading) a smartphone or a car, mostly by looking at the specifications (i.e. CV) or brochure. However, most of the hiring and firing issues, when escalated beyond a limit, result in a problem which is entangled by HR policies and Employment Laws.

Therefore, with a view to avoid such situations, here are few best practices that follow a problem solving approach. To begin with, the hiring problem is not confined to either the employer or the employee. Rather, both sides of the fence suffer from issues related to hiring, firing, managing employees and creating a healthy ecosystem, specially in light of HR policies and employment laws.
In short, when such problem escalates, categorizing it as either a HR issue or a Legal issue becomes impossible. Therefore, it is always advisable to follow a problem solving approach, which is neither an HR policy nor any specific law, but a general approach aimed at creating a healthy hiring and employment culture within an organization. The first and foremost way is to keep yourself at employee’s place and analyze it by walking backwards, i.e. to see the things from employee’s perspective and ensuring that various aspects of hiring, HR management and firing are balanced. If anything looks unjustified from employee’s perspective, the same should be amended accordingly.
Another important factor for startup and growth stage companies is to consider hiring plan equivalent to the business plan, which implies that constant changes must be applied to the hiring plan as it is usually done in case of business plan. The key is to learn quickly and adapt the changes accordingly. While hiring, business owners or founders shall wear the thinking hat of the investor, i.e. To invest in the employees with a view to add value to the business. In case of early stage startups, equity should be wisely spent as currency while offering a package to the employee. It should be clearly understood that hiring is like betting, wherein losses are inevitable. As a strict precaution, too much equity shall not be allotted to a single employee and in case of unexpected performance, rapid firing of employee should be avoided. Rather, an appropriate time must be given to an employee to prove his worth. Having a hiring plan is not a process, but it is a pipeline by way of which founders sell their story to future employees, just like they sell it to investors. The job should be pitched to the prospective employees without any hidden condition (similar to hiring a vendor without any hidden fees) and the pitch shall clearly state the Mission of the company, present status, details of team members, failures experienced (and expected) along with the opportunities on offer. This helps employees to clearly foresee their role

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Top Hiring Mistakes - Legal Perspective - Do's and Don'ts

  1. 1. Page No. 1info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPBUILDING A GOOD & EFFECTIVEHIRING STRATEGYLEGAL PERSPECTIVEDos and Donts
  2. 2. Page No. 2info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPAuthorsRahul Dev is a Patent Attorney, Technology &Business blogger, and partner ofTech Corp Legal LLP, an International Law Firm.Read more..Prity Khastgir is a Patent Attorney, specializingin Biotech, Food Technology & Pharmaceuticals,and partner of Tech Corp Legal LLP, anInternational Law Firm. Read more..
  3. 3. Page No. 3info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPTable of ContentsIntroduction to the Hiring Problem ........................................ 4Dos ....................................................................................... 8Donts .................................................................................. 11Myths & Reality...............................................................12-13Strategy ...............................................................................14Case Study ..........................................................................17Best Practices ......................................................................18About Us ............................................................................. 21
  4. 4. Page No. 4info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPIntroductionThe Hiring Problem - CruxBoth sides of the Fence Suffer
  5. 5. Page No. 5info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPIntroductionThe Hiring ProblemIn – House HR vs. AgencyBudget?More PainLess TimeGetting ThroughFitting in CultureNo Response
  6. 6. Page No. 6info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPIntroductionThe Hiring Problem - EscalationHR Law
  7. 7. Page No. 7info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPIntroductionProblem Solving ApproachHR Law
  8. 8. Page No. 8info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPStart from the End StateWalk Backwards – Wear Employees ShoesDos
  9. 9. Page No. 9info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPDosEarly Stage BusinessHiring Plan = Business PlanLearn & Update
  10. 10. Page No. 10info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPDosHire Like an InvestorSpend Equity like Currency
  11. 11. Page No. 11info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPDontsHiring = Betting [Can go Wrong]Dont Give Too Much Equity to 1 EmployeeDont Fire Wrong Employee Rapidly
  12. 12. Page No. 12info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPMythsThe Hiring ProcessStart – EndAssumption – Hiring is a Process !
  13. 13. Page No. 13info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPRealityThe Hiring ProcessStart – EndAssumption – Hiring is a Process !
  14. 14. Page No. 14info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPStrategyThe Hiring Pipeline – Focused ApproachSell Your Story to Generate Pipeline
  15. 15. Page No. 15info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPStrategyThe Hiring Pipeline – Job Pitch**Without Hidden ConditionsMission + Status + Team + Pain + Opportunity
  16. 16. Page No. 16info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPBusiness DecisionsIndirect Effect on HiringProduct Launch – Ripple EffectNot Launching = PainfulLaunching w/o Learning = Fatal [Business + Employees]Bad Story to Sell while Pitching a Job
  17. 17. Page No. 17info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPCase StudyProduct Launch Case StudyFounded in 07 – Launched in Sept. 08Key: Avoid Marimba PhenomenonSpending on PR & Marketing > Development
  18. 18. Page No. 18info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPBest PracticesHiring – Closing the Best DealTwo Sided EffortTransparencyRealistic & Positive ApproachAll T & Cs in WritingWritten Acceptance
  19. 19. Page No. 19info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPBest PracticesIf Nothing WorksHire a Lawyer !!
  20. 20. Page No. 20info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPBest PracticesIf Nothing WorksHire a Lawyer !!Disclaimer:Hiring a Cheap Lawyer is Suicidal
  21. 21. Page No. 21info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPAbout UsTechCorpLegalLaw FirmBioCorpLegalCyberCorpLegalTech CorpInternational ConsultantsSingaporewww.techcorpgroup.com
  22. 22. Page No. 22info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPAbout UsPharmaceuticalsBiotechnologyDrug LawsMobile ApplicationsSocial MediaCyber LawsTechCorpLegalLaw FirmBioCorpLegalCyberCorpLegal
  23. 23. Page No. 23info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPAbout Us
  24. 24. Page No. 24info@techcorplegal.comhttp://research.techcorplegal.com©TECHCORP LEGAL LLPThank youGet in touch: info(at)techcorplegal(dot)com

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