A: Unless your business handles public safety concerns, we would encourage you to very carefully consider implementing mandatory retirement age policies, and certainly NOT to do it on a case-by-case basis.
The reason is that on a federal level, company wide mandatory retirement age policies violate the Age Discrimination in Employment Act (ADEA), except in limited circumstances. The ADEA, which applies to organizations with 20 or more employees, protects employees age 40 and older from discrimination based on their age. Prior to 1986 the age discrimination law did not protect employees over the age of 70 in the workplace, but due to the 1986 amendment to the Act, this age cap was removed. As a result, all employees over 40 years old generally are covered by the ADEA. Since this change, companies are no longer able to enforce a mandatory retirement age for all employees.
There is one exception under the ADEA (outside of bona fide reasons for retirement, such as public safety officers, etc). That exception is company executives in a bona fide executive or higher policy-making position. For example, federal law does allow mandatory retirement for a company CEO at age 65 or older under two conditions:
If the reason you are asking the question is because you are concerned with how you deal with the growing number of older workers and the potential for declining performance in old age, the government expects us not to assume that all employees of a certain age are unable to perform their jobs or will be less productive for the organization.
But if an older worker is not performing at the level of expectation, this is a performance issue that should be addressed in accordance with your company’s policies and practices as a performance issue, not an age issue. (And this should be done on a case-by-case basis).
Allow the employee the opportunity to improve through training and coaching; do not assume the older employee will not or cannot learn and adapt to change.
The way many employers are helping their older workers while making room for their younger employees is through the use of voluntary retirement programs. These programs offer all employees of a certain age within the organization a retirement package above and beyond other guaranteed retirement benefits. Voluntary retirement packages do not violate the ADEA because they provide an option (not a mandate) for the older worker to receive more (not fewer) benefits upon retirement than someone retiring or leaving the company at a younger age.
We would encourage you to work with your legal counsel to discuss other relevant regulations and requirements of voluntary retirement programs.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
mentation of a more civil society. Those elected for the honor “illustrates the power of people pushing society for equal access and opportunity…[as] recently it seems that the insistence for inclusion has need ratcheting up and sector leaders have responded.”
Everyone at UST wou
ld like to extend our heartfelt congratulations to those included. We’d also like to thank all of the organizations that we work with for continuing to fight the good fight and make a difference for those around them.
See the full list of innovators being recognized by this years’ Power & Influence Top 50 here.
Unfortunately, for many states, the realization came a little too late.
During the height of the Recession, almost 40 states borrowed a combined $50 billion from the Federal Unemployment Trust Administration (FUTA) to continue providing jobless benefits. This much debt required many states to make long-term changes to their unemployment systems by either charging penalties or fees to businesses or by cutting jobless benefits. Many made historic cuts to the number of weeks of aid available, but some—like New Jersey which racked up more than $1.5 billion in debt—took a long, hard look at the administration of their trust.
In New Jersey that long, hard look at the administration of their unemployment trust fund resulted in some spectacular results. Over the past four years New Jersey has identified more than 300,000 people who tried to wrongly collect benefits through identity theft, failure to report a new job, schemes, and honest mistakes. Also:
But what did New Jersey do that set them on the path to successfully rebuild their unemployment trust fund?
They updated their system.
Namely, they began using a strategy referred to as ‘identity proofing.’ With the help of LexisNexis, the state of New Jersey requires applicants to verify a wide range of personal information through a quiz on the state labor department’s website. The questions are specifically developed to be ones that the individual who owns an identity could accurately answer.
Then, using the billions of public records that LexisNexis collects, the answers—which range from what kind of car an applicant has, to who lives at their address—help weed out potential frauds.
Less than a year-and-a-half into the effort, more than $4.4 million in improper payments have already been stopped, and almost 650 instances of identity theft have been avoided.
Want to know how well your state is catching improper payments? The U.S. Department of Labor provides this state-by-state breakdown for 2013.
Read more about how New Jersey is fighting improper payments and unemployment fraud here.
A: In order to reduce the risk of being held personally liable under either a federal or state statute, it is important for HR processionals to:
In order to understand and identify potential risks, HR professionals should have a good grasp of applicable employment law, along with an understanding of their business and the ability to maintain an ethical approach. Additionally, it is critical that HR professionals feel comfortable pushing back on the company when appropriate and vocalizing when something is not right, either legally or from a company values or culture perspective.
Federal Liability
Some of the areas where an HR professional may have exposure to personal liability are:
State Liability
HR professionals may have exposure to liability under a number of state or common law statutes ranging from assault, defamation, intentional infliction of emotional distress, ignored harassment or discrimination, and more.
It is not unusual for a disgruntled employee suing an employer to seek individual liability in order to increase their chances of a settlement. Most liability insurance policies don’t cover employment law violations so it is not unusual for companies to add additional employment practice liability insurance (EPLI) to address these situations. You should determine whether your employer has such a policy and if your position and self are protected under stated company plans.
The best way for HR professionals to avoid personal liability is to:
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
Follow these 5 easy steps to create sustainable changes within your nonprofit:
Change is what keeps nonprofits moving forward. Taking the time to foster cooperation amongst your employees is the easiest way to create lasting change—which provides ongoing opportunity for organizational growth within the nonprofit sector.
Learn more about how to gain employee support for organizational change here.
The Department of Labor (DOL) provides a short overview of the program on their website, and summarizes it by saying: “Unemployment Insurance is a federal-state program jointly financed through Federal and state employer payroll taxes. Generally, employers must pay both state and Federal unemployment taxes…However, some state laws differ from the Federal law and employers should contact their state workforce organizations to learn the exact requirements.”
The program itself works to provide jobless workers who have lost their job through no fault of their own with temporary, partial wages while they search for a new position. For more information on how unemployment insurance works, read our more complete overview on the state program.
Is Your Nonprofit Liable?
501(c)(3) nonprofits are exempt from federal unemployment taxes, but may be liable for state contributions if they meet something called the “4 for 20″ provision. This provision is triggered when four or more individuals are employed on the same day for 20 weeks in a calendar year, though not necessarily for consecutive weeks. It is important to note that who is considered “employed” for these purposes is not always straightforward – see Independent Contractors below.
Why Independent Contractors May Still Be Considered Employees
There are different rules and tests used by government organizations to determine independent contractor status, because different organizations are responsible for separate aspects of law. For the purposes of unemployment insurance, the Department of Labor uses something called the “ABC test”, which makes it sound simple, but is more complicated when applied to real situations.
The ABC Test establishes criteria that an work relationship must meet in order to for the services of that individual to not be considered employment. The three parts of the ABC Test relate to employer control/direction of the worker, place(s) of business or courses of business, and proof that the worker is independently established in the trade. A nonprofit may have to pay unemployment taxes even if the IRS or their state revenue services determine that, for income tax purposes, individuals may be independent contractors.
Cost-Saving Alternatives
The Unemployment Services Trust (UST) provides an alternative to paying into the state unemployment tax system, and can be a cost-saving option for nonprofits with more than 10 employees. Through UST, organizations directly reimburse the state only for the claims of their former employees, rather than paying the state unemployment insurance tax which covers all employers throughout the states.
And, because keeping unemployment costs low is vital to so many organizations across the U.S., we’ve added state-by-state information for taxable wage bases from the Department of Labor so you can see where your organization falls on the tax scale.
We encourage nonprofits to be proactive in learning what their options are, and what types of unemployment tax alternatives best suit their needs. Complete a complimentary Savings Evaluation to see if your organization could save money on its unemployment costs.
This post does not constitute official or legal advice. A version of this article originally appeared on blog.nonprofitmaine.org by Molly O’Connell.
A: If the employee in question has not done anything illegal or against company policy in the workplace, the employer is not required to take any action. However, the concern may be that the workplace may become a charged environment between these two employees.
The employer should monitor the environment at work, focusing on job performance and productivity, while remaining aware of the possibility of existing conflict between the two employees that may create a hostile environment or a distraction for those working nearby.
If either individual creates a conflict in the workplace, the employer should address it immediately and counsel the offender. Written documentation of any event should occur.
An employee whose behavior is questionable outside of the workplace may not be disciplined or singled out by the employer. However, the employer has the responsibility to ensure that no employee is subjected to a hostile work environment and will want to be aware of any conflict amongst the individuals. Additionally, no action should occur until such time as an employee is convicted of any alleged complaint, nor should any perceived act of retaliation exist.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
Taking the time to plan out one’s budget, on a more consistent basis, can help an organization better identify, prioritize, and build towards their goals. To create an effective budget, follow these 6 simple steps:
In order to grow within the nonprofit sector, organizations must learn how to construct and abide by their determined budgets. Serving as a roadmap to achieving annual objectives, a well thought out budget can help nonprofits succeed without sacrificing excess funds.
Learn more about the importance of nonprofit budget planning here.
A: A “hostile work environment” is one of the two types of sexual harassment prohibited by law. The scope of this type of harassment is broad, but is generally defined by the following examples provided by the Department of Labor:
A hostile environment can result from the unwelcome conduct of supervisors, co-workers, customers, contractors, or anyone else with whom the individual interacts on the job, and the unwelcome conduct renders the workplace atmosphere intimidating, hostile, or offensive.
Examples of behaviors that may contribute to an unlawful hostile environment include:
The Department of Labor provides more information on when a hostile work environment violates the law and suggested information for creating a policy here.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
The speaker then asked the participants to perform the search again as a collaborative group. He suggested they each pick up one balloon and find the owner of that balloon.
If you haven’t already heard about the study findings, which recently began to go viral, all of the participants were sitting down, with their unique balloon, well before the 5 minute mark.
For the past couple of decades, researchers have been performing live social experiments like this one to illustrate the power of teamwork and collaborative effort. Out of this body of work has come some pretty powerful information that can improve your organization—and it’s collaborative results—if used well.
Not least among the information sets that have been discovered, is the fact that companies that have the best collaborative teams are 10 times more likely to reach high financial goals as those who don’t. So what is it that makes the best teams?
According to MIT researchers, the best teams:
If you’re team is not performing as well as you would like them to, or if your team is fairly homogenous—which researchers have repeatedly found discourages a healthy level of creativity— this article from the Society of Human Resources Management (SHRM) suggests appointing someone within your team to play devil’s advocate.
Other suggestions to improve the collaborative working environment within your team include:
A: The answers to your questions are ultimately determined by company policy due to the fact that there is no mandatory requirement under state or federal laws to offer employees holiday pay. Many employers do, however, offer holiday pay to both full- time and part-time employees as part of the company’s competitive total compensation package.
It is a matter of company policy regarding pay for a holiday that falls within the week of an employee’s vacation. You may define eligibility criteria for these benefits, such as requiring that employees work the day before and the day after the holiday to receive the benefit unless on approved time off, or holiday pay will only be provided when the holiday falls on a regularly-scheduled work day.
Nothing under the federal or state family and medical leave laws (FMLA or state “mini-FMLA”) require an employer to continue a holiday pay benefit during an unpaid leave for either hourly non-exempt or exempt employees.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
On July 9th the Unemployment Services Trust (UST) released its first ever animated video short. As a part of UST’s ongoing efforts to educate nonprofits about the cost-saving alternative exclusively available to those with a 501(c)(3) tax status, the video will be shared with thousands of nonprofits.
About a minute long, the video reveals how more than 2,000 nonprofit employers with 10 or more employees have saved up to 60% on unemployment costs and reduced time spent on HR after joining the UST program.
By developing a highly focused repertoire of services—including an expert HR Hotline and Resource Library, and an expert claims management system with a secure online claims dashboard—UST helped members save $32,598,054 in mitigated unemployment claims last year.
Last month an additional $8,762,873 was returned, in cash, to participants that had an overall positive unemployment claims experience in 2013. Altogether this represents more than $43 million in claims savings, audited state returns, and cash back for members last year.
To learn more about the UST program for 501(c)(3) employers, visit www.ChooseUST.org or call (888) 249-4788 to speak with an Unemployment Cost Advisor.
About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing nonprofit organizations with 10 or more employees a safe, cost-effective alternative to paying state unemployment taxes. UST has partnered with 80 state and national nonprofit-based associations to teach their members about their unemployment insurance alternatives. Visit www.ChooseUST.org to learn more.
Over the next several weeks 521 nonprofit members of the Unemployment Services Trust (UST) will receive a combined $8,762,873 in cash back. In total this brings participant savings over the past year to more than $43 million in claims savings, audited state returns, and cash back.
“One of the most exciting times of the year at UST is when we get to tell members that they will be receiving money back,” said Donna Groh, Executive Director of UST. “For members that elect to take the cash back as a check this money often helps them expand important initiatives. And, learning the exact impact that each dollar we’re able to save, and return, to nonprofit employers helps motivate us to find even more ways to lower unemployment costs across the board for our members.”
The UST program, which helps nonprofits with 10 or more employees control unemployment-related HR costs, includes an annual review of its 2,000+ nonprofit accounts–using an advanced actuarial model. Unlike the state unemployment tax system or some private insurance where taxes and premiums cannot be refunded (even when benefits paid out are far below what the employer paid in), UST instead allows for cash back when an organization has a positive unemployment claim experience.
UST members whose claims were lower than anticipated, and that are well-funded for future claims, will receive a direct refund or credit to their nonprofit organization.
“Hearing the individual stories about what members plan to do with their cash back is extremely rewarding, and allows us to better emphasize the mission-driven impact of becoming part of the UST program,” seconded Adam Thorn, Director of Operations.
By aiming to ensure that a nonprofit is properly reserved for unemployment claims costs, but not holding excess funds beyond the necessary cushion for future claims, UST helps serve its mission of “Saving money for nonprofits in order to advance their missions.”
To learn more about the UST program for 501(c)(3) employers, visit www.ChooseUST.org or call (888) 249-4788 to speak with an Unemployment Cost Advisor.
About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing nonprofit organizations with 10 or more employees a safe, cost-effective alternative to paying state unemployment taxes. UST has partnered with 80 state and national nonprofit-based associations to teach their members about their unemployment insurance alternatives. Visit www.ChooseUST.org to learn more.
XpertHR and Nonprofit HR conducted a 2014 survey of Senior HR professionals to reveal the way nonprofit HR departments are constructed and held accountable. Representing 260 organizations throughout the US and Canada, the results showcase the importance of measuring and documenting an HR department’s effectiveness.
According to the survey, just over 1/3 of organizations reported documenting an official HR strategy. And with nearly 40% of HR professionals failing to measure their department’s effectiveness, many nonprofits have trouble building upon their HR best practices.
In addition to sustaining an effective HR department, nonprofits are also burdened by a limited HR budget. Taking the cost of HR salaries, recruitment, and administration into account, the median cost of running an HR department is reported at $91,715.
In order to alleviate financial HR costs, UST offers its members exclusive access to ThinkHR, a value added service that provides HR professionals with expert advice and support tools. This service includes a live HR Hotline, an online HR library, and over 200 employee training courses. Learning how to outsource and prioritize your organization’s HR needs can save you money—money that can be put towards mission advancement and further HR staff development.
Learn more about how your nonprofit can gain access to ThinkHR’s expert HR staff here.
Despite the pressure to constantly face their imminent demise, the smartest nonprofits—the ones that are best positioned to make a long-term impact on their mission—carefully build and manage a healthy operating fund, as well as an ample operating reserve fund. By protecting their organizational finances against sudden or dramatic cash flow changes, these organizations can continue to provide services in the toughest times.
Having a healthy operating budget provides your nonprofit with a more solid base by setting aside unrestricted net asset balances and investing them in the organization’s programs. The greater this reserve, the greater your organization’s ability to grow current programs and promote your mission.
The operating reserve portion—the portion set aside for emergencies and unforeseen circumstances that negatively affect your financial operations—protects your employees and your mission in the direst of circumstances.
Unfortunately, there isn’t one set benchmark for how much money a healthy nonprofit should have set aside as an operating reserve budget.
The Importance of Operating Reserves for Nonprofits- Read the article here.
Nonprofit Operating Reserves and Policy Examples- Visit the webpage here.
Maintaining Nonprofit Operating Reserves- Download the whitepaper here.
Reserves Planning: A step-by-step approach for nonprofit organizations- Download the whitepaper here.
Budgeting “Best Practice” Tips for Nonprofits- Download the PDF here.
Financial Management- Visit the National Council of Nonprofits financial management resource list here.
A: The type of reimbursement plan you have will dictate whether reimbursement for business travel is or is not taxable.
With an “accountable plan”, the reimbursement is not taxable to your employee. Amounts paid under an accountable plan are not wages and are not subject to income tax withholding and payment of Social Security, Medicare, and Federal Unemployment (FUTA) Taxes. Your reimbursement or allowance arrangement must meet all three of the following in order to quality as an accountable plan:
The other type of plan that is taxable, subject to all employment taxes and withholding is called a “nonaccountable plan”. Your payments would be considered treated as paid under a nonaccountable plan if: (1) your employee is not required to substantiate expenses to you with receipts or other documentation in a timely manner; and (2) you advance an amount to your employee for business expenses and your employee is not required to and does not return any amount s/he does not use for business expenses in a timely manner.
Please check with your state department of taxation for state tax rules.
For more detailed information on federal mileage reimbursement, please refer to Publication 15, Circular Ehttp://www.irs.gov/pub/irs-pdf/p15.pdf, and Employer’s Tax Guide; Publication 1542, Per Diem Rateshttp://www.irs.gov/pub/irs-pdf/p1542.pdf.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
The nursing home was alerted to the post after a nursing professor saw the post and shared it with the administration.
Although there have been a number of firings of nursing staff based off of their social media posts over the past few years, many of them deal with patient confidentiality. In this case, the employee’s violation of the nursing home’s social media policy– which he had signed with the receipt of his first paycheck– was what protected the nursing home from having to pay costly unemployment benefits to an employee who put patient safety and the reputation of the facility on the line.
If you haven’t already, it may be time to review your current social media policy to ensure that your mission, and reputation, are protected from similar situations.
Read more about the case in this article by the Nonprofit Quarterly.
A: Typically the temporary agency will ensure that their employees know the position they are filling is a temporary assignment. However, if you want to make it perfectly clear, you could ask the temporary agency to give them a letter of understanding structured like an offer letter (on the agency’s letterhead) outlining that the position is temporary through the agency and is expected to continue through [date], that they are ineligible for the contracting company benefits as they are not employees of [company], their employer of record is XX temporary agency, etc. This should ensure that there is no confusion concerning the promise of employment with the contracting company.
Question and Answer provided by ThinkHR. Learn more about how your nonprofit can gain access to their expert HR staff here.
This newest partnership will allow U.S. based organizations with a 501(c)(3) tax designation to more effectively take advantage of the federal law that allows nonprofits to opt out of the state unemployment tax system. By paying only the dollar-for-dollar cost of unemployment benefits paid to former employees, organizations that join UST lower their average claims cost to just $2,287 per claim versus the national average of $5,174 per claim.
“The ultimate goal of each and every nonprofit association that we work with is to provide their members with the best opportunities to advance their missions. By combining the power of hundreds, and sometimes even thousands, of smaller nonprofits, associations are able to get better money saving tools customized for their members,” said Donna Groh, Executive Director of UST.
“Last year we found more than $3.5 million in tax savings for nonprofits that came to us through our association partnerships. This year we want to double that and find at least $7 million in tax savings for our affinity partners’ member organizations.”
About the Alliance for Children and Families: The Alliance is a national organization dedicated to achieving a vision of a healthy society and strong communities for all children, adults, and families. The Alliance works for transformational change by representing and supporting its network of hundreds of nonprofit human serving organizations across North America as they translate knowledge into best practices that improve their communities. Working with and through its member network on leadership and advocacy, the Alliance strives to achieve high impact by reducing the number of people living in poverty; increasing the number of people with opportunities to live healthy lives; and increasing the number of people with access to educational and employment success. For more information, visit Alliance1.org. About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing nonprofit organizations with 10 or more employees a safe, cost-effective alternative to paying state unemployment taxes. UST has partnered with 80 state and national nonprofit-based associations to teach their members about their unemployment insurance alternatives. Visit www.ChooseUST.org to learn more.
The Unemployment Services Trust (UST) is pleased to announce that the Delaware Alliance for Nonprofit Advancement (DANA) has endorsed UST as a new Affinity Partner—making DANA the 15th state nonprofit association to bring UST to their members. UST will now join the other cost-saving member benefits offered to DANA member organizations and will offer resources to help them maintain HR best practices and standards, and reduce unemployment-related costs.
The UST program helps 501(c)(3) organizations take advantage of the federal law that allows nonprofits to opt out of the state unemployment tax system. By paying only the dollar-for-dollar cost of unemployment benefits paid to former employees, organizations that join the Trust see their average unemployment claim cost fall to $2,287, versus the national average of $5,174 per claim.
“We are thrilled to have DANA join us as an Affinity Partner because we know there is ample opportunity to help their members thrive. We want to help Delaware agencies, with 10 or more employees, discover whether they are overpaying their state unemployment taxes,” explained Donna Groh, Executive Director of UST. “We make it our mission to provide nonprofits with the latest tools and information required for organizational growth – and having the power to better educate these Delaware nonprofits through DANA can only help us strengthen the nonprofit sector.”
“We are proud to partner with UST to bring their unemployment and HR resources to Delaware,” says Chris Grundner, President and CEO of DANA. “We’ve seen the impact and savings they provide in other states, and we’re glad to now see our members benefit from their expertise and high-quality customer service.”
About the Delaware Alliance for Nonprofit Advancement (DANA): As a leader of the nonprofit sector, DANA’s mission is to strengthen, enhance, and advance nonprofits and the sector in Delaware through advocacy, training, capacity building, and research. For more information, visit DANA’s website at www.DelawareNonprofit.org.
About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing nonprofit organizations with 10 or more employees a safe, cost-effective alternative to paying state unemployment taxes. UST has partnered with nearly 80 state and national nonprofit-based associations to teach their members about their unemployment insurance options. Visit www.ChooseUST.org to learn more.
Written by Karen Beavor and re-published by permission of the Georgia Center for Nonprofits Just as important as developing a deep individual relationship with each board member, it’s also important to understand what your team of individuals amounts to, and what qualities, skills, and connections it still needs to fulfill all your organization’s strategic goals—that is, to become a well-rounded, fully-functional superteam capable of taking on any challenge. If constructed wisely, your board can work as your organization’s personal consulting team.
To figure out what kinds of individuals your team has, and what skills it still needs, you need a process for discerning assets and talent gaps on your board, in relation to your strategic goals. To do that, I advocate laying out your strategic goals and the skill sets necessary to achieve those goals, then determining which of those skill-sets your board already has on-hand. In our years training nonprofit EDs and boards, Georgia Center for Nonprofits has developed a simple method for producing three handy reference charts that will align your organization’s goals with the skills available from the board. Properly aligned, that board can effectively drive initiatives to success, through advisement, the ability to connect or uncover resources, or literally by leading problem solving.
Moreover, when building a team, it is important to understand that you are also building a culture. Paying attention to the kind of board culture you want, and interviewing candidates for attributes as well as skills, will ensure that the board is in full alignment with the needs and values of the organization.
By implementing an intentional process for discerning strengths and gaps on the board, vetting candidates and prioritizing them appropriately, you’ll find not only that your candidates are better suited to the work at hand, but that new members will begin their tenure with clearly-defined roles.
A sample Strategic Needs Table, listing strategic goals and the skill sets needed to execute the strategies involved. Note that contract expertise is useful for more than one goal, meaning that particular skill-set should be a priority.Our foolproof methodology begins with a Strategic Needs Table.
Start by placing your organization’s strategic goals across the top row of a table. Think about the strategies you’ve decided on to reach those goals, and list the skill sets you’ll need to accomplish them beneath.
If your goal is to, say, increase the availability of quality affordable housing, one of your strategies might be to purchase and rehabilitate foreclosed properties, then rent them at an affordable rate. For that, you probably need a number of skill sets: real estate expertise to negotiate deals, banking expertise to assist with financing, an attorney to manage contracts, and a contractor for renovation and maintenance.
As you look across all your goals and strategies, you’re also looking for repeating skill-sets. The need for an attorney, for instance, might arise across a number of goals. Therefore, having an attorney on your board might become a priority position to fill. This person could provide legal advisement, connections to other attorneys, or legal resources and guidance.
Before you can determine the types of board members you need to recruit, you’ve got to understand who on the board already understands the ins and outs of each strategy. To do that, you’ll need to construct a Current Board Inventory.
That means creating another table, this one listing the skill-sets identified by your Strategic Needs Table across the top row, and your current board members down the left-hand column. For each board member, put a check beneath the skill sets they possess. If you don’t yet know your board members well enough to make an accurate inventory—and don’t assume you do—I advise creating a short survey that you can send through email or conduct over the phone. Be sure to ask about current and past employment; significant hobbies; major corporate, philanthropic, or donor relationships; professional association involvement; political positions held; and any other boards served on. You may be surprised!
With your board inventory finished, you should be able to see, at a glance, the strengths your board possesses and the gaps that need filling. That table should allow you to create a prioritized list of skills, talents, and connections you must seek in the next board members you recruit.
You should also take time to decide what you want in your next recruit, because you are creating a board culture as much as you’re seeking skills—and it won’t matter how many strategic needs a particular candidate fills if there’s no cultural fit. If they can’t connect with your organization, chances are they won’t stick around long enough make an impact.
To come up with a list of desired cultural attributes, think about the foundational values of your organization, the work style of your staff and programs, and the qualities you most appreciate in the board members you have. These might include an affinity for improvisation (or for long-term planning); an attitude of positivity and agreeableness (or skepticism and challenge); a certain geographic reach; a kind of diversity (racial, gender, socioeconomic, political); a particular community connection; or the ability to make a personal gift, or to get others to give. (At one nonprofit we work with, the key attribute is “nice.” That’s their code for assertive and positive, rather than contentious or argumentative.)
Once you’ve decided on these key attributes, you can create a Recruit Attributes Chart, much like the Current Board Inventory, accounting for these qualities in the candidates you interview. With that table, you can prioritize recruits who fulfill the same skill-set by their “fit”: that is, how many cultural attributes one marketing expert fulfills compared to the other marketing experts you’re interviewing.
Of course, all of this is just preparation for your real work with the board: empowering your organization to fulfill all the promise of its mission. From here, it’s up to you to develop a purposeful, intentional plan that takes advantage of all the skills and strengths your board members possess.
Access more GCN resources on board building and engagement at GCN.org/Boards.
Karen Beavor is President and CEO of the Georgia Center for Nonprofits. Since 1998, Beavor has led GCN’s growth into a leading state association empowering nonprofits through education, advocacy, research, consulting and business support services. Karen has served as a board member or advisory board member of a variety of civic and nonprofit organizations including the Unemployment Services Trust; National Nonprofit Risk Management Center; and The Foundation Center–Atlanta. Karen has received the Martin Luther King Leadership award and the Harvard Business School Club of Atlanta’s Community Leader Award. She is a member of the 2000 class of Leadership Atlanta and 2003 Coca-Cola Diversity Leadership Academy, and a graduate of Agnes Scott College. About Georgia enter for Nonprofits
The Georgia Center for Nonprofits builds thriving communities by helping nonprofits succeed. Through a powerful mix of advocacy, solutions for nonprofit effectiveness, and insight building tools, GCN provides nonprofits, board members, and donors with the tools they need to strengthen organizations that make a difference on important causes throughout Georgia. Learn more at gcn.org.
For large organizations, or organizations that expect high turnover year-over-year, that number may not be particularly compelling. But for organizations in which high turnover is a sign of a bigger problem, this kind of turnover needs to be looked at as an opportunity for improvement.
Looking more closely at the reasons for separation, nearly 60% of all turnover last year was voluntary. And—including both voluntary and involuntary separation data—about 40% of separations happened when the employee had been in the position less than 6 months.
The cost of turnover can be monumental.
Even for employees that have only recently joined the organization, the cost of replacing them can be mind boggling.
Consider this: the average cost of turnover is typically reported between 15 and 21% of the employee’s salary. But the ‘actual cost’ consists of the time and resources that are spent recruiting and hiring a replacement, greater demands on other employees to pick up the slack (which could lead to burn out and more employee openings), the need to train and develop the new employee, and potentially lost revenue and opportunities.
To stay competitive and to reduce the amount of voluntary turnover as efficiently and effectively as possible, it’s time for employers to dust off their research skills and learn more about what factors are encouraging employees to leave your organization.
Conduct exit interviews, and find out why employees are leaving your organization. Dig deep into the reasons that employees are leaving—is there a toxic employee rotting the rest of their department? Is the amount of work incongruent with the amount of pay? Are poor benefits or strict working hours causing employees to look elsewhere?
Once definitive information has been collected and examined, take the time to address it throughout the organization. Make changes where necessary. And if changes can’t occur, for instance if better benefits are too hard to provide, look for opportunities to become more flexible with employees.
The savings will quickly add up.
Read more about how to see voluntary turnover as an opportunity here.
The Unemployment Services Trust (UST) is proud to announce that 96 percent of current participants would recommend the program as a valuable cost-saving opportunity for nonprofits. UST credits the improvement over last year’s 93 percent recommendation rate to an intense focus on the overall member experience and greater attentiveness to members’ needs.
“From the very beginning, the UST program was designed to support nonprofits by reducing the time and cost associated with managing an unemployment claim,” said Donna Groh, Executive Director. “To have found that our members would overwhelmingly recommend our service to other nonprofits is extremely rewarding.”
“We’ve worked hard to improve our customer service model and increase the quality of interactions that our customer service team has with our current members over the past year,” said Adam Thorn, Director of Operations. “By incorporating best practices and higher customer service standards, we have been able to support more in-depth interactions with our members, whether that means providing more detailed responses to questions or better educating organizations about the benefits of reimbursing for unemployment claims versus paying taxes.”
“On the heels of this increase in customer service standards was the increase in direct savings that our members experienced last year as well,” said Groh in reference to mitigated unemployment claims costs and cash back to participants.
Last year, UST was able to help members mitigate $32,598,054 in unemployment claims through best-in-class claims management. The same claims management services allowed UST to return an additional $1.7 million of charges made in error by state unemployment offices, which were audited by UST and credited back to the individual organizations.
Select participants also received $11,041,738 in cash back after their reserve accounts were reviewed for positive claims experience.
How your employees approach their responsibilities and relationships within your organization dictates its level of success. However, how you choose to conduct yourself as a leader sets the tone for your employees’ overarching sense of accountability—which can create either a trusting, or toxic, work environment.
In order to be a great leader, one must educate, coach, empathize, encourage, and sometimes discipline employees. According to Simon Sinek, who was recently featured in TED2014, being a good leader is like being a parent –the main objective is to provide your workers the necessary tools to be successful and grow. Holding your employees accountable for their actions allows them to take ownership of their actions, and forces them to take responsibility for their successes and failures.
For nonprofits, who are often restricted by budgetary concessions, high morale and cooperation are driving forces required for mission advancement. Such internal drive can only be cultivated through feelings of security.
When employees feel as though they are being looked after and respected by their leaders, they develop a greater willingness to take initiative.
Great leaders also sacrifice for the well-being and safety of their staff. Selfless actions from a leadership figure will cause a domino effect of trust within an organization. And when the relationship between employer and employee improves, employees spend more time and energy devoted to strengthening the organization as a whole.
To learn more about what it takes to be a great leader, watch Simon Sinek’s video.
Read more about leadership management tips here.
Her drive and passion to spread awareness within the community makes her a great fit for the UST team. Laurie explains, “I am not doing any volunteer work currently, but when my father passed away from cancer 10 years ago, one of the ways I got through it was to get involved with the American Cancer Society’s Relay for Life fundraisers in Ventura.”
Outside of the office, Laurie and her husband are adjusting to life as newfound puppy parents. They’re rescue puppy, Watson, is a Dachshund/Corgi mix and makes a wonderful addition to their household.
When given the opportunity, Laurie can’t resist the tranquility of nature. “Camping is probably my favorite thing to do and my husband and I go at least twice a year – sometimes more,” she says. “My favorite camping trip was years ago with my sister and some friends and we went on a 50 mile (2 ½ day) river rafting trip on the Colorado River from Grand Junction, CO to Moab, UT…definitely one of the best trips I’ve ever been on!”
In addition to being a dog lover and camping enthusiast, Laurie likes to let loose with a little help from her buddy, Bruce. If her life was a TV show, Laurie would select Growin’ Up by Bruce Springsteen as a theme song that played every time she walked into a room. “This represents the music I grew up with and sometimes I don’t think I’m finished growing up.”
Are you a fan of Bruce Springsteen too? Tell Laurie about it @USTTrust with the hashtag #MeetUSTMondays!
Highlighting the biggest problems that the delays in funding create, including reducing and/or putting staff pay on hold, the reports aim to introduce public policy proposals that would streamline the contracting process.
Some of the top findings from the survey included identifying the primary places and reasons contract payment is delayed and that:
Read more about the summary findings here.
Read the full study by the National Council of Nonprofits here. And read the full Urban Institute study here.
Since the Great Recession took its initial toll on the state unemployment insurance (UI) funds, states across the U.S. have gone into considerable debt in order to provide benefits for millions of unemployed. Trying to combat unemployment costs while restoring their debt with the federal government, many states look towards alternative measures to repair their financial foundations.
In 2011, states accumulated a debt of over $47 billion owed to the federal government– the peak of the United States’ economic deficit. While the federal debt has since decreased, with 16 states still owing over $21 billion at the beginning of 2014, a lot of states took out private loans to avoid an automatic increase in their federal unemployment tax on employers.
With a low UI trust fund balance, many states have been forced to cut their unemployment benefits, rather than borrowing additional money from the government. Other alternative methods used to reach state solvency include:
Such actions were meant to diminish volatility and recover sensibly from the impact of the debt.
While the states have steadily reduced the debts triggered by the Great Recession, the U.S. has a long way to go before they achieve full economic restoration. And employers will continue to see their overall cost of unemployment steadily rising, if their state is to both recover and prepare for the next downturn.
To see how your state unemployment insurance trust fund debt compares to other states, view Stateline’s chart here.
Learn more about how the U.S. is affected by the unemployment trust fund debt here.
One of our dedicated Unemployment Cost Advisors, Adriana works one-on-one with nonprofits looking to save on HR costs and helps evaluate their savings potential.
“Nonprofits work extremely hard to fill the gaps where people find themselves struggling the hardest; and helping those nonprofits save time and money that can be put back into their mission is very gratifying.”
Outside of work Adriana is a dog lover, enjoys gardening and hiking, and has plans to camp under the Aurora Borealis someday.
“Wandering around in nature with friends for a couple of hours is the best form of stress release,” she said, which also translates into her recently planted garden. “I never thought I’d get into gardening, but it’s been rewarding to see the results of our hard work. And it’s also delicious!”
Want to set up a time with me to learn more about how UST can help your organization save on HR costs? Tweet me at @USTTrust with #MeetUSTMondays.
An analysis by UWC- Strategic Services on Unemployment & Workers’ Compensation reveals that a number of states have state UI trust funds that are so insolvent they are unlikely to recover before the next recession. For employers in these states (listed below) it can be expected that state and/or FUTA tax rates will continue to rise with longer term restrictions being imposed on benefit increases alongside enhanced integrity efforts.
While some states have elected not to maintain a large trust fund balance and are relying on “just in time” supplemental funds to assure their solvency, many are using bonds to supplement UI taxes and remain strained.
States not meeting the 0.5 Average High Cost Multiple threshold as of December 31, 2013 include:
Alabama, Arkansas, Arizona, California, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Virgin Islands, Virginia, Wisconsin, West Virginia
States that do not meet the DOL recommended levels but have average High Cost Multiples of 0.5 or more include:
Colorado, DC, Hawaii, Maryland, Maine, Michigan, Minnesota, Puerto Rico, Vermont
States that have solvent UI trust fund balances according to the US DOL 1.0 Average High Cost Multiple formula include:
Alaska, Iowa, Idaho, Louisiana, Mississippi, Montana, North Dakota, Nebraska, New Hampshire, Oklahoma, Oregon, South Dakota, Utah, Washington, Wyoming
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
But how do you find the right employee? Simple. Recruit a hiring team internally before recruiting any potential staff.
The hiring team you assemble should be your recruitment backbone—helping you create the hiring timeline, outline specific role responsibilities, and conduct interviews.
Here are 6 tips to keep in mind when creating and working with your recruitment team:
Having the support of a dedicated hiring team can help speed up the hiring process, while increasing efficiency. Knowing when and how to engage your hiring staff can help you identify the best possible candidate for any potential position—giving your nonprofit the edge it needs accomplish mission objectives.
Learn more about how to select and utilize your recruitment team here.