Human Resources for Entrepreneurs

Entrepreneurship 101 for Researchers, MaRS March 18, 2009 Tammy Sturge, HR Transformations

What does a new entrepreneur need to know about Human Resources?

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

Copyright 2006 HR Transformations.

Topics We Will Cover

Hiring practices Compensation Performance appraisals Policy development Firing Practices Related legislation
Copyright 2006 HR Transformations.

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)

Copyright 2006 HR Transformations.

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

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Pitfalls:
Hiring someone for their pulse factor Hiring someone today who isnt going to fit into your organisation of tomorrow Hiring someone as a contractor who is really an employee

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Contractor or Employee?
Revenue Canada and our courts make this decision Has implications for your remittances on CPP and EI, benefits and severance Isnt cut and dried but are looking for an employment like relationship

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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?
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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

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Hiring Practices
Make offer
reference checks background checks offer letter

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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

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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 youd 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 didnt directly report to you?

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The Offer Letter

This is a legal document - but it doesnt have to sound that way Keep it friendly - youre 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

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The Offer Letter

Legal addendum can include:
Termination clause Non solicitation clause Non compete clause is optional - not enforceable Confidentiality and proprietary information clause

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Motivating and rewarding employees*

Dont 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) Dont expect a magic fix
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Without using money

Policy
Might want a very slim one after five employees You probably wont 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

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A performance appraisal process

Have a process - even if its a convo that takes place over a couple of beers Its a process not a piece of paper Youll need a standardized process and format as soon as you have people who have other employees reporting to them

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Addressing Performance Issues

#1 Principle: Thou shalt manage performance issues.

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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.

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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
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Termination
Just cause ESA versus common law Process

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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

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Examples of Just Cause

willful misconduct gross incompetence theft fraud conflict of interest serious undermining of the organisations culture serious breach of employer rules and policies (sexual harassment violation) non attendance
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Wrongful Dismissal Payments

Employment Standards Act Common law Human Rights Commission

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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

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Questions???

Copyright 2006 HR Transformations.