Human Resources BDI3C

TO FIND THE RIGHT PEOPLE ask:  What needs to be done?  What can I do myself?  What can be done by people who are already on my team?  If I need someone else to do the job, what level of expertise and experience does the person need to have?  Will one person be enough to do the job? If not, how many people will I need?  Do I need people to work full-time or can they work on contract?  Why will these people want to work for me?

The INTERNAL TEAM  Recruiting externally (outside the venture) – these people bring new and exciting ideas, experiences, and knowledge into the business. But, you don’t know them, and you may cause ill feelings among current employees who feel past over.  Recruiting internally (from current employees) – you already know the skills, abilities, and work habits of the employee, and by hiring from within, you motivate current employees to work hard. However, by hiring only from within, you limit your possible choices and so you may not get the best person for the job.

Keeping Good Employees  Treat employees with respect  Value their ideas  Ask for their opinions  Be honest about future opportunities  Ask for input and give feedback  Clearly communicate policies and expectations  Be flexible  Encourage employees to constantly upgrade skills  Provide opportunities for ongoing staff development  offer pay incentives for improved performance

Pay Incentives:  Gain Sharing – employees share a percentage of the revenues that result from increased productivity  Profit Sharing – employees share part of the profit made by the firm  Group Incentives – targets are set and team awards are given when targets are met  Individual Incentives – individual employees are given awards when they meet productivity targets  Pay for knowledge – employees are paid more as they acquire new skills  Key Contributor Program – one-time awards are given to workers who have been critical to the success of a particular project

The EXTERNAL TEAM the advisors, consultants, and support groups who can offer advice and services to help the entrepreneur.

The EXTERNAL TEAM The Lawyer The Banker The Accountant The Real-Estate Agent The Insurance Agent The Management Consultant

The Lawyer  legal form of business  business name registration  applicable laws and regulations

The Banker  lend money  provide financial advice

The Accountant  should be hired early in the planning stages  keeps financial track of the company  tax planning

The Real-Estate Agent  In many cases, the location is a crucial aspect of your business  The agent’s job is to be familiar with potential business locations

The Insurance Agent  plan for the unexpected  this agent helps you arrange for suitable types of insurance – e.g., protection in case of fire, flood, theft, or personal injury  the right insurance can often save a business from failure if its premises or records are destroyed

The Management Consultant  help entrepreneurs manage all phases of their ventures, particularly start-up and growth  offer a wide variety of services, e.g., conducting market surveys, preparing financial statements, helping get start-up capital