human resource for entrepreneurs

Human Resources for

Entrepreneurs

Entrepreneurship 101 for Researchers, MaRS

March 20, 2007

Tammy Sturge, HR Transformations

Copyright © 2006 HR Transformations.

What does a new entrepreneur need to know

about Human Resources?

How to hire and fire - and how to pay &

manage people in between


Topics We Will Cover

Hiring practices

Compensation

Performance appraisals

Policy development

Firing Practices

Related legislation


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)


Hiring Practices

Define the job

!Job mandate, responsibilities and skills

Search for a candidate

!Post on professional organisation sites workopolis.com - etc.

!Send to your networks

!Call possible candidates directly


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


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


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?


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

Make offer

!reference checks

!background checks

!offer letter


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


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?”


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

!Legal addendum can include:

!Termination clause

!Non solicitation clause

!Non compete clause is optional - not enforceable

!Confidentiality and proprietary information clause


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


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


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


Addressing Performance Issues

#1 Principle: Thou shalt

manage performance issues.


What is a performance issue?

“A performance issue is any circumstance thatoriginates with the employee which prevents themfrom successfully meeting their commitments tothe organisation or to their job.”

These issues may include: job performance, absenteeism, safetystandards, organisation policies and standards, ethical issues, ormedical conditions.


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”


Termination

!Just cause

!ESA versus common law

!Process


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


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


Wrongful Dismissal Payments

!Employment Standards Act

!Common law

!Human Rights Commission


Termination Process

!prepare final cheque

!choose your time and place

!bring kleenex

!make the meeting short

!give time to gather belongings, returnkeys, etc.

!communicate to the rest of your staff


Questions???

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