Startup Session: Hiring & Firing
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The document provides tips for startups on hiring and firing employees. It discusses when startups should hire and the key considerations in the hiring process such as determining skills needs. The document outlines the differences between independent contractors and employees. It provides advice on interviewing, onboarding new hires, and setting expectations. The document also discusses procedures for dismissing employees or contractors, including redundancy and disciplinary processes. Throughout, it emphasizes the importance of being fair, respectful and documenting all processes when hiring and firing.
Startup Session: Hiring & Firing
- 1. Top Tips for Startups Allyssa Gregory – HR Director 16th February 2016 Hiring & Firing
- 2. …is it time to hire? WHAT SHOULD I DO???
- 3. 3 Hiring is a huge challenge for entrepreneurs Getting your hiring right as a startup is critical to your success! Let’s have a look at some of the key considerations Select with care!
- 4. 4 Setting out! • When to hire? • Are you missing out on opportunities? • What skills do you need? • And for how long?! • Do you need a contractor, or an employee? • Are you in a financially robust enough position to employ new people permanently? • Are you set up to employ people? • Get the contract ready
- 5. 5 Spot the Difference! Independent Contractors • No employment status ; no entitlement to benefits • More risk oriented • Usually dictate from where and when they work • May work for more than one organisation • Typically bring their own equipment • Will submit invoices for work performed • You won’t be responsible for their tax/ NI. Be careful not to treat them as employees – IR35! Ensure your contract protects your IP Have a solid “Statement of Works” Employees • A more “dependent” relationship • Employees have certain entitlements – e.g. minimum wage, paid holiday, notice period, employment rights • Full-time, part-time, permanent or fixed term • Employer provides the equipment • Employer must ensure tax and NI deductions are correctly calculated Ensure you have an employment contract in place Define work policies and procedures Have a clear job description and set objectives
- 6. 6 What to Pay – Where to Look? • What can you afford? – but don’t be cheap! • Take a look at job boards for market salary levels • Free to access salary surveys on recruitment company websites (e.g. Hudson); Glass Door • Go social • Ask for referrals • Attend careers fairs like Silicon Milk Roundabout • Go to networking events • Use job boards – but be ready to do some filtering work • If you are going to use recruiters, negotiate HARD! 73% of 18-34 year olds found their last job through a social network. (Source: Aberdeen Group)
- 7. Interviewing – Making the Right Choice Plan your interview process • Who is conducting the interview • Consider setting a task/ assignment Define “wants” vs “needs” • Skills • Knowledge • Competencies Sell…but be TRANSPARENT • Don’t over-promise • What it is ‘vs’ what it isn’t Listen, listen, listen • Let the candidate do the talking • Ask open questions; ask for examples • Be cautious of erratic moves or unexplained gaps • Does a startup thrill them or terrify them? Chemistry Matters!! • Meet more than once – meet socially Take References
- 8. 8 What does a great startup hire look like? Resilience Results Oriented Passion Curiosity Flexibility Agility
- 9. 1 2 3 4 9 You’ve Hired! – Now what? Get all the admin out of the way – payroll, benefits and expense processes, IT systems, building access and orientation, procedures Introduce them to the team and key contacts Be clear in setting expectations – e.g. Probationary Goals, Statement of Works, Targets – what does good look like? Engage, embed, lead, develop! – provide support, offer advice, give feedback, listen, recognise, praise – a “thank you” goes a long way!
- 10. “I have some bad news…” WHAT SHOULD I DO??? Dismissing Redundancy Conscious Uncoupling?!
- 11. 11 …but keeping the wrong people around can negatively impact: • Your other team members • The potential of the job • Your business Letting people go is stressful
- 12. 12 Before you take action! Personal Situation Alternative role Training Need Clarity of Goals Motivation What’s not working? ???
- 13. 13 Terminating Independent Contractors Reasons • End of a project, no further requirement for skills/ experience • Dissatisfaction with performance • Breach of contract • …no reason at all… Process • Check contractual terms • Be open and clear about reasons • Keep the door open! Steps • Meet and explain the situation • Write a letter to terminate the contract • Observe the notice period • Make final payments
- 14. “It’s OK – she’s only been here for 18 months…” Under 2 Years’ Service • You can often terminate an employment contract with no reprisals • There is no requirement to follow a formal process – redundancy, disciplinary etc. • The employee has no access to an unfair dismissal claim during this time BUT WAIT! • Discrimination protection from day 1 (age, gender, disability, pregnancy, maternity, sexual orientation, gender reassignment, marriage/ civil partnership, race, religion, belief) • Reasons relating to: Family related leave or pregnancy Acting as an employee or trade representative or a pension scheme trustee Whistle blowing Part-time, fixed term, pay and working hours
- 15. 15 Disciplinary Related Dismissal Reasons • Poor performance • Time-keeping and attendance • Inability to get along with colleagues • Capability or illness (Be careful: Disability protection!) • Gross Misconduct – violence, theft, bribery, alcohol / substance abuse, damage to company Process • Ensure you have a Disciplinary Policy in place – and follow it! • Get your facts straight • Try to resolve informally • Invite employee to attend meetings in writing and with notice • Outline the issue at hand • Detail the time and place of the meeting and who will attend • Provide the right to be accompanied to meetings • Right of Appeal • Document everything! Steps • Dependent on your policy: 1. Verbal Warning 2. First Written Warning 3. Final Written Warning 4. Dismissal • Summary Dismissal
- 16. 16 Redundancy Fair reasons • The role no longer exists because: New technology makes a job unnecessary You need to cut costs and reduce the number of employees You need to close the business Process • Outline the business case - clearly explain the reason for possible redundancy and selection methods applied • Invite employee to attend meetings in writing and with reasonable notice • Detail the time and place of the meeting and who will attend • Provide the right to be accompanied to meetings • Seek to avoid redundancy where possible • Provide right of appeal Steps • Consultation periods: Individual / less than 20 - No set consultation time period 20 to 99 redundancies - the consultation must start at least 30 days before any dismissals take effect 100 or more redundancies - the consultation must start at least 45 days before any dismissals take effect • Severance terms/ payments – notice, holiday pay, redundancy pay • Support
- 17. However you do it… • Be clear – explain the reasons for dismissal • Be respectful – this is all about your employer brand! • Be fair – e.g. calculate final payments carefully • Keep notes – document everything
- 18. 18 Handy (free) HR Resources www.acas.org.uk www.gov.uk/browse/employing-people www.cipd.co.uk startups.co.uk/taking-on-staff/