HRM for Entrepreneurs
Transcript of HRM for Entrepreneurs
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Human Resources forEntrepreneurs
Entrepreneurship 101 for Researchers, MaRS
March 18, 2009
Tammy Sturge, HR Transformations
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What does a new entrepreneur need to
know about Human Resources?
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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
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Topics We Will Cover
Hiring practices
Compensation
Performance appraisals
Policy development
Firing Practices
Relatedlegislation
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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)
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Hiring Practices
Define the job
Job mandate, responsibilities and skillsSearch 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 anemployee
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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 employmentlike 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 thatuses 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 demonstratedleadership 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 (Hawthorneeffect)
Find simple ways to recognise andacknowledge them (1,001 Ways toReward Employees)
Dont expect a magic fix Without using money
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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 thatcan be easily customized
Or write your own and have a professional check it forlegality
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A performance appraisal process
Have a process - even if its a convo that takes placeover 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 fromsuccessfully meeting their commitments to theorganisation or to their job.
These issues may include: job performance, absenteeism, safetystandards, organisation policies and standards, ethical issues, or
medical conditions.
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Managing Performance Issues - JobRelated
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 whatdegree 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 theemployee 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???