Guidelines and Principles

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Effective management of human resources is essential for creating successful organizational results. Nonprofit organizations should exercise fair and equitable human resource practices that attract and retain qualified individuals. Nonprofits have an obligation to adhere to all legal employment requirements and to provide a safe work environment. Nonprofit organizations should establish specific policies and practices that promote mutual cooperation to advance the organization’s interests, and that reflect appropriate industry standards for remuneration.

Assessment Items

General

Hiring, Development, & Retention

Performance Compensation

Policies, Procedures & Plans

Resources

Legal

Required Employment Postings
Recommended

Grievance policy & Procedures

An employee grievance policy is a step-by-step method in which people who feel they have been wronged can alert management about the problem or issue. A fast and effective solution benefits all involved. Your employees are happy and productive and management has avoided what can be a lengthy and expensive process of resolution.1

Rather than turning a deaf ear to complaints, nonprofits need to provide employees with a credible listener who will also provide an objective review of their grievance. Employees will feel fairly treated if they have had an opportunity to tell their story, and the nonprofit has the benefit of learning, outside of litigation, the details of the employee's concerns. Insurance carriers and defense lawyers recommend that every employer have some sort of internal procedure for resolving complaints.2

Basic Elements of a Formal Written Grievance Procedure
  • A requirement that employees utilize the grievance procedure by submitting their disputes or complaints to the nonprofit in a timely fashion;
  • A statement of how complaints are submitted (usually in writing) and to whom (usually there is a choice of two people so that if one of the identified persons makes the complainant uncomfortable, the other is still an option);
  • Identification of who will review the complaints and make the determination;
  • A statement that retaliation against any employee who brings a complaint is prohibited and will subject the retaliator to discipline up to and including discharge; and
  • A statement that the nonprofit will report back to the complaining party, and that the nonprofit's decision is final.3

Resources & Sample Documents


Notes
1. http://www.insperity.com/blog/how-to-create-an-employee-grievance-policy/
2. http://nonprofitrisk.org/library/articles/employment01002000.shtml  (BROKEN LINK)
3. http://nonprofitrisk.org/library/articles/employment01002000.shtml  (BROKEN LINK)

Best Practices

General
  • Be sure to use NAM resources to confirm which employment laws and postings are legally required for an organization of your size.
  • Regularly evaluate the organization’s capacity from a staff standpoint: are you able to advance upon your mission with the current structure? Do you need more or less staff? Are all employees in positions that maximize their talents and abilities?
    Format position descriptions and evaluations to reflect individual contributions toward mission achievement.
  • Develop a formal recognition system to acknowledge and celebrate the work of both individuals and the collective team. Consider staff spotlights through newsletters or internal postings; be sure to communicate and celebrate wins when a new benchmark is reached or a project/program enjoys a particular success.
  • Take time to say “thanks” and “you make a difference here.”
  • Regularly provide opportunities for staff to see their impact, for example, by sharing out consumer quotes and impact statistics or building in time to interact directly with consumers. Not only are these inspiring reminders of why we do what we do every day, but these interactions are also a tremendous motivator.
  • Display the organization’s mission prominently throughout the office - consider placing it in each office/work station; find creative ways to encourage staff to know the mission (i.e., conduct pop quizzes at staff meeting with small prizes for staff who can recite the mission); print the mission on the back of employee business cards; set screen savers with the mission statement; include the mission on company letterhead and all publications.
  • Frame staff meetings around the mission; end each planning session with “and this will bring us closer to achieving our mission by…”; plan a staff retreat with a specific mission focus – ensure that each staff member understands their individual role as well as the role of others."
Hiring, Development & Retention
  • When hiring staff, discuss the core values of the organization to ensure compatibility. You cannot dictate an employee’s lifestyle, but you can outline expectations for representing the organization and interacting with clients, constituents, and partner organizations.
  • Ensure that policies and procedures of human resource management (paid and volunteer staff) are within legal guidelines and address effective practices of risk management. Consider best industry practices as well as your own unique circumstances when establishing policies and procedures.
  • When hiring an executive, encourage the selection committee to consider the potential for leadership and motivation in addition to management skill. A successful executive is well rounded, allowing him/her to advance the mission in myriad ways.
  • The board should develop a strategy for annual evaluation of the executive. Determine the criteria for evaluation (progress toward mission achievement through what measures?); from whom feedback will be sought and in what format; and how the feedback will be compiled and presented.
  • While the executive is responsible for staffing and managing the organization on a day-to-day basis, professional development of staff, retention, and turnover as it relates to the organization’s ability to achieve mission should be discussed and monitored by the board. Estimates for replacing staff range anywhere from 25% to 200% of the annual salary for the position; investing in staff development through tuition reimbursement programs, conferences and trainings, and professional journals/publications has a significantly lighter impact on the bottom line and a conversely positive impact on mission achievement.
  • Provide resources and opportunities for cross-training and professional development of staff. This will minimize the impact of staff turnover and create more well-rounded employees.