Human Resources Management

Human Resources for
Entrepreneurs

Entrepreneurship 101, MaRS
March 24, 2010
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


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)


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

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


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?

  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?


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


Hiring Practices

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


The Offer Letter
  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 and bitter
  give time to gather belongings, return keys, etc.
  communicate to the rest of your staff


Questions???


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