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Human Resources for Entrepreneurs

What you need to do about the basics of HR policies and practices in an entrepreneurial context and everyone's favourite topic: hiring and firing!

Part of the CIBC Present Entrepreneurship 101 lecture series.

For more information including video of the lecture, see:

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Human Resources for Entrepreneurs

  1. 1. Human Resources for Entrepreneurs Entrepreneurship 101 for Researchers, MaRS March 18, 2009 Tammy Sturge, HR Transformations
  2. 2. What does a new entrepreneur need to know about Human Resources? Copyright © 2006 HR Transformations.
  3. 3. What does a new entrepreneur need to know about Human Resources? How to hire and fire - and how to pay & manage people in between Copyright © 2006 HR Transformations.
  4. 4. Topics We Will Cover Hiring practices Compensation Performance appraisals Policy development Firing Practices Related legislation Copyright © 2006 HR Transformations.
  5. 5. Some Resources: (free HR tools) (the actual Employment Standards Act) (Human Rights Commission of Ontario) Copyright © 2006 HR Transformations.
  6. 6. Hiring Practices Define the job   Job mandate, responsibilities and skills Search for a candidate   Post on professional organisation sites - etc.   Send to your networks   Call possible candidates directly Copyright © 2006 HR Transformations.
  7. 7. 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 Copyright © 2006 HR Transformations.
  8. 8. 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 Copyright © 2006 HR Transformations.
  9. 9. 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? Copyright © 2006 HR Transformations.
  10. 10. 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 Copyright © 2006 HR Transformations.
  11. 11. Hiring Practices Make offer   reference checks   background checks   offer letter Copyright © 2006 HR Transformations.
  12. 12. 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 Copyright © 2006 HR Transformations.
  13. 13. 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?” Copyright © 2006 HR Transformations.
  14. 14. 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 Copyright © 2006 HR Transformations.
  15. 15. The Offer Letter   Legal addendum can include:   Termination clause   Non solicitation clause   Non compete clause is optional - not enforceable   Confidentiality and proprietary information clause Copyright © 2006 HR Transformations.
  16. 16. 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 Copyright © 2006 HR Transformations.
  17. 17. 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 Copyright © 2006 HR Transformations.
  18. 18. 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 Copyright © 2006 HR Transformations.
  19. 19. Addressing Performance Issues #1 Principle: Thou shalt manage performance issues. Copyright © 2006 HR Transformations.
  20. 20. 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. Copyright © 2006 HR Transformations.
  21. 21. 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” Copyright © 2006 HR Transformations.
  22. 22. Termination   Just cause   ESA versus common law   Process Copyright © 2006 HR Transformations.
  23. 23. 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 Copyright © 2006 HR Transformations.
  24. 24. 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 Copyright © 2006 HR Transformations.
  25. 25. Wrongful Dismissal Payments   Employment Standards Act   Common law   Human Rights Commission Copyright © 2006 HR Transformations.
  26. 26. 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 Copyright © 2006 HR Transformations.
  27. 27. Questions??? Copyright © 2006 HR Transformations.