1. CLASS SEVEN: ATTRACTING AND MANAGING HUMAN RESOURCE CAPITAL Elikem Nutifafa Kuenyehia Management Consultant and Corporate Lawyer

2. Hand in mid-semester assignment Mid-term assessment of Class & Lecturer Recap of Class 7 Attracting & Managing Human Capital Laws Affecting Human Capital – Labour Law – Social Security & National Trust Law – Workmen Compensation Law – Factories, Offices and Shops Act 2

3. Ability to attract and retain human capital is one of the hallmarks of successful entrepreneurship Resources must be spent in identifying, attracting and retaining talent Dual focus of attracting & retaining Expensive to replace a lost employee Ability to so attract & retain depends in part on entrepreneurial leadership 3

4. Entrepreneurial Leadership is inspiring and motivating people. It involves: Setting a vision for the enterprise “selling' that vision to key stakeholders (incl. employees) Influencing & Inspiring others to work with the entrepreneur to achieve the vision Challenge employees, empower them and give them freedom to achieve results Must balance empowerment with controls 4

5. Many start up entrepreneurs want to avoid a wage bill and therefore do everything themselves Risk is that entrepreneur may not have the relevant skill set to perform some of the roles Should therefore strike balance between need to save cost and the importance of getting people with right skill sets to perform the relevant roles Be creative if you cannot afford to hire F/T employees 5

6. Hire Part-time employees. Could be people working elsewhere or students (e.g. University students or students doing professional exams) E.g GIJ students writing for magazine; NVTI students helping out as trainee chefs at restaurant Outsource certain tasks especially research to university students working under marketing lecturers Risks include: Potential lack of commitment Potential loss of confidentiality 6

7. Do not consider wide enough talent pool Lack of rigorous selection/interview process Solo decision making without consultation Micro-manging employees Could lead to frustration and lack of creativity Important to have controls & pro-actively manage/monitor BUT should give some room for creativity & initiative especially in case of highly skilled experienced professional 7

8. Demonstrate entrepreneurial leadership Create a set of beliefs and passionately pursue them Set the right examples for employees to follow. Be accountable to same standards as you hold employees Behave with integrity at all times Respect and support employees Constant Communication Celebrate success Encourage creativity amongst workers Maintain sense of humour 8

9. Don't just hire people you know/are related to – Invest time to find and interview the right people Design an organogram, each role with a job description & profile of kind of employee required Shortlist a few candidates to interview – Shortlist based on job description & potential risks May decide to headhunt. But take references 9

10. Should put thought and effort into interviewing Ensure relative standardization of interview Qs to ensure apple-to-apple comparison Also, have interview evaluation sheet Ask questions that will give insight into candidate's qualification, experience & character Ask open ended questions Ask for examples/scenarios to determine whether he can do the job If straight out of school, evidence of leadership etc 10

11. Preliminaries Aim is to relax candidate so as to get best out of him/her Describe the role & company Questions Ask detailed questions relating to candidates experience Wrapping Up Give candidate opportunity to ask questions Reiterate key highlights about role/company – 'Sell Company” 11

12. A person employed for six months or more must be given a contract of employment Should express rights & obligations of the parties Required by law to provide written statement signed by parties of key terms Should include pay, holidays, sick pay (if any), pension etc Act guarantees fifteen working days' leave with full pay for every calendar year of continuous service 12

13. Applies to every employer of an establishment and every worker employed in the establishment Self employed persons (those who have no other employee but themselves) may opt in Employers required to deduct 5% of worker's pay and to contribute 12.5% of workers pay This amount cannot be deducted from workers pay 13