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Document Sample
13. HR Essentials
Interviewing
and
hiring
the
right
employees
can
be
surprisingly
challenging,
but
is
cri5cal
for
assembling
the
best
team.
There
are
a
lot
of
candidates
out
there;
in
this
chapter
I
explain
how
to
find
and
hire
the
right
ones
for
your
business
and
posi5on.
I
also
delve
into
some
important
human
resources
procedures,
such
as
proper
methods
and
forms
for
hiring
and
termina-ng
employees,
and
best
tools
for
managing
managing
payroll
and
benefits.
Employees
are
the
bedrock
of
your
business,
learn
how
to
manage
them
properly
for
mutual
benefit.
Interviewing Candidates
Finding,
veBng,
interviewing
and
hiring
the
right
candidates
for
a
posi5on
is
more
challenging
than
you
might
expect.
I’ve
conducted
hundreds
of
interviews,
and
s5ll
find
it
difficult
to
discern
what
an
employee
will
really
be
like
on
the
job.
It’s
best
if
you
have
a
referral
from
somebody
you
trust,
but
in
cases
where
you
don’t
here
are
a
series
of
ques5ons
and
red
flags
that
help
me
separate
the
right
candidates
from
the
wrong
fit:
Chapter 14: HR Essentials
Ques5ons
to
Ask
“What’s your ideal position?”
I
want
to
hear
the
in
candidates’
own
words
what
their
dream
job
is,
or
the
posi5on
they
are
eventually
working
towards
in
their
career.
You’d
be
surprised
how
many
5mes
people
will
describe
a
posi5on
that
doesn’t
exist
or
is
unrelated
to
your
business;
this
is
probably
an
indicator
that
they
won’t
be
around
long
term.
“What do you know about my company?”
This
is
a
common
ques5on,
and
simply
tests
how
much
they
know
about
your
company.
If
they’re
not
familiar
with
the
basics
of
your
company,
such
as
the
service
it
offers
and
how
it
makes
money,
then
they’re
not
taking
the
interview
seriously
enough.
“What do you do better
than anything else?” Quick Tip
This
ques5on
encourages
the
Watch this video and
check out this article
Chapter 14: HR Essentials
candidate
to
self-‐iden5fy
their
strengths,
so
that
you
can
for a more in-depth
evaluate
how
it
fits
into
your
exploration of topics
company’s
needs. and questions to ask.
“What’s feedback you’ve gotten from a previous
manager on an area you need to improve?”
If
they
say
they’ve
never
goNen
feedback,
ask
them
to
imagine
what
their
manager
would
say.
This
is
a
bit
of
a
seman5c
trick,
because
it
takes
the
self-‐cri5cism
out
of
their
hands
and
allows
them
to
describe
their
weaknesses
from
the
perspec5ve
of
a
third
person.
They
will
tend
to
be
a
liNle
more
honest
about
their
need
for
improvement.
If
they
can’t
iden5fy
any
weaknesses,
this
might
be
a
red
flag
down
the
line;
you
don’t
want
to
work
with
employees
who
aren’t
self
aware,
or
can’t
see
room
for
improvement.
One
Strike
Rule
I
have
several
red
flags
that
immediately
ruin
a
candidate
for
me:
If
somebody
is
unprepared
for
the
interview,
I
get
the
sense
that
they’re
not
being
truthful,
or
they
come
off
as
arrogant,
these
usually
eliminate
them
as
poten5al
candidates.
For
me,
I
hire
by
a
one
strike
rule.
The
amount
of
-me,
energy
and
effort
that
you
all
spend
trying
to
improve
an
employee
can
be
very
detrimental
to
your
business.
In
my
experience
I’ve
found
that
a
Quick Tip candidate
either
has
a
set
of
Chapter 14: HR Essentials
quali5es
that
you’re
looking
for,
with
the
poten5al
to
grow
into
a
Check out this video great
employee
through
for red flags to look encouragement
and
mentorship,
out for during the or
they
don’t.
interview process.
It
might
be
hard
to
turn
down
candidates,
especially
if
you
really
need
to
fill
a
posi5on,
but
trying
to
force
a
candidate
into
a
posi5on
they
don’t
belong
is
like
trying
to
fit
a
square
peg
in
a
round
hole;
it’s
a
waste
of
-me.
In
the
long
run,
you’ll
save
a
lot
of
5me,
money
and
energy
by
trus5ng
your
ins5ncts
about
a
candidate.
Over
the
years,
I’ve
found
that
lot
of
being
a
business
owner
is
about
trus-ng
your
ins-ncts
and
inner
voice.
Good
Management
As
the
founder
and
CEO
of
my
company,
my
business
is
my
priority
in
life.
When
I’m
working
I
pour
100%
of
myself
into
my
work.
Even
when
I’m
not
at
work,
50%
of
my
brain
is
s5ll
thinking
about
my
business.
When
I
first
started
working
with
people,
I
no5ced
that
not
everyone
worked
at
the
same
intensity
level
as
myself.
I
started
to
wonder
Chapter 14: HR Essentials
whether
it
was
something
I
needed
to
accept,
that
these
were
just
different
working
styles.
AZer
six
years
as
a
CEO
and
manager,
I
can
tell
you
that
I’ve
decided
no,
I’m
not
prepared
to
compromise
with
the
caliber
of
people
I
hire.
Your
organiza5on
can
only
be
excep5onal
if
it’s
made
up
of
high
performing
people
who
love
what
they
do,
and
take
tremendous
pride
in
the
quality
of
their
work.
People
work
at
my
company,
not
just
because
they
need
to
make
a
living,
but
because
my
company
affords
them
the
opportunity
to
do
something
unique
and
fulfilling
every
day.
Many
of
them
could
find
other
jobs,
or
start
their
own
companies,
but
they
choose
to
stay
and
always
do
their
best
work.
I
can
tell
you
right
now,
the
majority
of
people
are
not
like
this,
and
it’s
difficult
finding
people
who
match
your
level
of
intensity.
Once
you
hire
great
people,
being
the
boss
doesn’t
mean
simply
telling
your
employees
what
to
do.
This
will
lead
to
resentment,
and
doesn’t
foster
a
sense
of
accomplishment,
collabora5on
and
autonomy.
Chapter 14: HR Essentials
As
a
leader,
your
role
is
to
set
a
clear
vision
of
overall
goals,
lay
out
the
most
important
tasks
that
need
to
be
completed,
and
then
lead
by
example.
Be
mindful
of
where
employees
are
coming
from;
be
sure
that
you’ve
either
experienced,
or
are
willing
to
carry
out
any
tasks
that
you’ve
delegated
to
someone
else.
Always
communicate
very
clearly
not
only
what
you
want
the
employee
to
do,
but
how
they
are
helping
you
meet
key
goals.
Most
employees
aren’t
looking
to
be
told
what
to
do,
but
for
somebody
to
confirm
what
they’ve
already
planned
to
do.
Hiring & Firing Employees
In
this
sec5on
I’m
going
to
dive
into
the
nuts
and
bolts
of
hiring
employees
and
leBng
them
go.
There
are
several
documents
and
procedures
you
should
have
in
place
to
make
sure
these
processes
happen
smoothly,
and
to
avoid
any
issues
down
the
line:
Documents
for
Hiring
&
Firing
Chapter 14: HR Essentials
Job Application Background Check
You
will
need
a
flow
for
I
would
recommend
candidates
to
find,
geBng
a
background
understand
and
apply
for
check
on
any
employee
the
posi5on.
Some
you
hire,
too
keep
an
companies
use
a
job
eye
out
for
any
criminal
applica5on,
while
others
history
or
red
flags.
just
write
job
descrip5ons
Note:
you
always
need
with
requirements
and
post
to
get
the
candidate’s
them
on
job
boards
online. permission.
Offer Letter Employment Agreement
Once
you’ve
decided
to
The
next
step
aZer
the
hire
a
candidate,
you’ll
offer
leNer
is
the
want
to
give
them
an
offer
employment
agreement,
leNer,
a
non-‐binding
which
states
the
terms
of
wriNen
statement
of
the
employment.
The
basic
terms,
the
job,
and
document
will
also
what
compensa5on
you’re
include
a
confiden5ality
offering. agreement,
and
a
sec5on
where
the
employee
acknowledges
the
fact
that
the
intellectual
property
they
produce
Chapter 14: HR Essentials
Employee Non-Compete while
working
for
you
belongs
to
the
company.
This
agreement
prevents
To
learn
more
about
employees
from
pursuing
a
important
Employment
similar
profession
with
Agreements,
check
out
compe5ng
companies. this
video.
Release of Claims
If
you’re
leBng
an
employee
go,
it’s
important
that
you
get
a
release
of
claims
agreement
signed,
which
means
that
the
employee
is
agreeing
not
to
sue
the
company.
To
get
a
former
employee
to
sign
this,
you
oZen
need
to
offer
some
sort
of
benefit,
such
as
a
warm
recommenda5on
for
their
next
job.
Types
of
Workers
There
are
two
main
types
of
workers,
employees
vs.
independent
contractors.
Contractors
are
less
hassle
because
they
require
less
work
on
the
part
of
you
as
the
employer,
but
if
a
worker
meets
the
criteria
of
an
employee
you
must
treat
them
as
one:
Employee
An
employee
is
somebody
who
works
for
your
business
Chapter 14: HR Essentials
under
your
direc5on
and
control.
Employees
tend
to
work
in
the
office,
and
use
company
materials
to
do
their
work.
You
are
required
to
take
the
appropriate
amount
of
federal
and
state
taxes
out
of
their
paycheck.
Independent Contractor
The
main
difference
between
an
employee
and
an
independent
contractor
is
a
contractor
is
paid
a
set
fee
to
complete
a
project
or
series
of
projects,
and
you
don’t
have
to
take
anything
out
of
their
taxes.
They
work
more
independently,
and
don’t
need
to
be
in
your
office.
Paid vs. Unpaid Interns
Interns
may
be
a
temp5ng
op5on
for
a
business
on
a
budget,
but
keep
in
mind
that
you
may
be
legally
required
to
pay
your
interns,
depending
on
the
state.
You
may,
however,
offer
unpaid
internships
if
they’re
receiving
college
credit
or
significant
training
and
mentorship.
In
either
case,
make
them
feel
like
an
important
part
of
the
team
by
giving
them
an
offer
leNer
and
congratula5ng
them
for
being
chosen.
Chapter 14: HR Essentials
All
employees
will
fall
into
one
of
two
categories:
Exempt Employee Non-Exempt Employee
An
exempt
employee
is
This
employee
should
be
somebody
that
works
in
paid
hourly,
and
is
a
salaried
posi5on,
and
en5tled
to
over5me
in
can
legally
be
exempt
cases
when
they
work
from
over5me.
Typically
over
40
hours
a
week.
applies
to
managers
or
Typically
applies
to
more
a
technically
trained
task-‐based
jobs
with
less
workers. decision-‐making.
A
Final
Note
on
Termina5on
One
final
thing
to
check
is
whether
your
state
is
an
“at
will”
state.
California
is
an
“at
will”
state,
which
means
employees
are
working
by
their
own
choice,
and
the
employer
is
hiring
them
by
their
own
voli5on
as
well.
Either
party
may
decide
to
end
employment
at
any
-me.
However,
even
when
leBng
employees
go
in
an
“at
will”
state
can
occasionally
lead
to
a
s5cky
situa5on.
A
former
employee
may,
for
example,
file
a
discrimina-on
claim
Chapter 14: HR Essentials
arguing
that
they
were
unfairly
terminated
or
treated
improperly.
These
lawsuits
can
be
expensive
and
draining,
so
it’s
important
that
you
‘re
mindful
of
how
you
let
employees
go.
If
you’re
considering
firing
an
employee,
be
sure
that
you’ve
been
giving
them
consistent
feedback
on
the
things
that
you
expect
from
them,
and
where
they
have
fallen
short.
Make
sure
some
of
these
conversa5ons
are
on
record,
whether
through
email
or
other
performance
evalua5ons,
so
that
you
can
prove
later
on
that
they
were
terminated
due
to
their
inability
to
perform
at
the
level
that
was
expected.
Payroll and Benefits
You
may
be
tempted
to
handle
payroll
yourself,
but
I’d
strongly
suggest
you
let
a
payroll
company
like
those
I
list
below
handle
employee
payroll
and
taxes.
There
are
two
other
things
to
remember
with
regards
to
benefits:
1)
If
you
offer
a
benefit
to
one
employee,
you’re
legally
required
to
offer
similar
benefits
to
the
rest
of
your
employees.
Chapter 14: HR Essentials
2)
If
you
let
an
employee
go,
they
are
en5tled
to
be
compensated
their
salary
up
un-l
that
point,
as
well
as
any
unpaid
vaca-on
or
bonus
-me.
This
is
something
many
employers
overlook
the
first
5me,
be
sure
not
to
get
tripped
up
with
this
mistake.
Payroll Services
• ADP
These are popular payroll and
• Trinet
HR services I’d recommend
for your business: • Paychex
Resources Recap
•
HR
and
Employee
Management
(course)
•
Interviewing
Candidates
•
Ques5ons
to
Ask
(video)
•
Interview
Ques5ons
(ar5cle)
•
Red
Flags
to
look
out
for
(video)
•
Hiring
and
Firing
•
Hiring
Documents
(document
package)
Chapter 14: HR Essentials
•
Job
Applica5on
(legal
doc)
•
Job
Descrip5on
(custom
doc)
•
Employment
Applica5on
(legal
doc)
•
Employment
Agreement
(legal
doc)
•
Important
Employee
Agreements
(video)
•
Employee
Non-‐Compete
Agreement
(legal
doc)
•
Employee
Release
Agreement
(legal
doc)
•
Payroll
Services
•
ADP
•
Paychex
•
Trinet
