Human Resource for Entrepreneurs

Human Resources for
Entrepreneurs
Entrepreneurship 101 for Researchers, MaRS
March 20, 2007
Tammy Sturge, 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


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 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.


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, return
keys, etc.
!communicate to the rest of your staff


Questions???


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