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Human Resources for Entrepreneurs
Entrepreneurship 101, MaRS March 24, 2010
Tammy Sturge, HR Transformations
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What does a new entrepreneur need to know about Human Resources?
Copyright © 2006 HR Transformations.
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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.
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Topics We Will Cover
• Hiring practices • Compensation • Performance appraisals • Policy development • Firing Practices • Related legislation
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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.
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MaRS Resources: Recruitment, Selection, and Hiring: http://www.marsdd.com/entrepreneurs-toolkit/articles/Recruitment-Selection-and-Hiring Attracting and Retraining the Right People: http://www.marsdd.com/entrepreneurs-toolkit/articles/Attracting-and-Retaining-the-Right-People-Butteriss-on-Human-Resources Interviewing Employees: http://www.marsdd.com/entrepreneurs-toolkit/articles/The-Interview Offer Letter: http://www.marsdd.com/entrepreneurs-toolkit/articles/Offer-of-Employment Compensation: http://www.marsdd.com/entrepreneurs-toolkit/articles/Compensation Performance Reviews: http://www.marsdd.com/entrepreneurs-toolkit/articles/Performance-Reviews-Butteriss-on-Human-Resources Termination: http://www.marsdd.com/entrepreneurs-toolkit/articles/Termination
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Hiring Practices
Define the job Job mandate, responsibilities and skills
Search for a candidate Post on Workopolis Post on professional organisation sites – Engineering sites, Alumni sites Search LinkedIn Send to your networks Call possible candidates directly
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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.
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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
Isn’t cut and dried but are looking for an “employment like” relationship
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Do you have an employee?
Work at your office?
Use your computer and your admin assistant?
Work full-time?
Have only you as a client?
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
Copyright © 2006 HR Transformations.
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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 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.
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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
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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
Copyright © 2006 HR Transformations.
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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”
* Copyright © 2006 HR Transformations.
Without using money
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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.
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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.
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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.
Copyright © 2006 HR Transformations.
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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” Copyright © 2006 HR Transformations.
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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
Copyright © 2006 HR Transformations.
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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
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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 and bitter
give time to gather belongings, return keys, etc.
communicate to the rest of your staff
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Questions???
Copyright © 2006 HR Transformations.