The document provides tips for startups on hiring and firing employees. It discusses when startups should hire and the key considerations in the hiring process such as determining skills needs. The document outlines the differences between independent contractors and employees. It provides advice on interviewing, onboarding new hires, and setting expectations. The document also discusses procedures for dismissing employees or contractors, including redundancy and disciplinary processes. Throughout, it emphasizes the importance of being fair, respectful and documenting all processes when hiring and firing.

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

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

3. 3
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!

4. 4
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

5. 5
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

6. 6
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

8. 8
What does a great startup hire look like?
Resilience
Results
Oriented
Passion
Curiosity
Flexibility
Agility

9. 1
2
3
4
9
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?!

11. 11
…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

12. 12
Before you take action!
Personal
Situation
Alternative
role
Training
Need
Clarity of
Goals
Motivation
What’s not
working?
???

13. 13
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

15. 15
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

16. 16
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

18. 18
Handy (free) HR Resources
www.acas.org.uk
www.gov.uk/browse/employing-people
www.cipd.co.uk
startups.co.uk/taking-on-staff/

19. 19
THANK YOU!
https://uk.linkedin.com/in/allyssa-gregory
@AllyssaGregory
@digicatapult