This Month's topic: Ethical Employee Benefits
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Blog!
Problem: There is so
much going on in our field that a once-a-month communication doesn't seem
adequate.
Solution: The Mission-Based Management
Blog. I am trying to post nearly every day with something of value
to nonprofit board, staff, volunteers, and funders.
Take a look and see
if you find things that can help you. My postings are in no particular order,
just what's on my mind, or what has crossed my desk or screen that I think you
should be aware of.
And, like any blog, you can comment right on the blog
for others to see. If you agree, disagree, or have other resources to share,
please do!
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| This Month's Topic: Ethical Benefits |
Each month, this area provides with a
number of my favorite and most helpful sites regarding the topic of the month.
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Management
Tip of the Month
Each issue, I start with a discussion
of my management perspective on the month's topic, and give you a few hands-on
ideas to consider.
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Recommended Publications
Here, I provide you with my
recommendations on the best printed materials available that can help you
become more mission-capable in the area of employee benefits.
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Technology
I provide you with some good ideas for
uses of tech to better your organization in the area of ethical benefits.
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Marketing
Tip
So much to say, so little space to say
it.....
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Next
Issue
In September, we'll look at an issue that is
really important: Entrepreneurship. Good idea or bad? The answer is, well, yes, and we'll examine the how and why.
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Websites of the
Month
Here are my recommendations for websites of interest
on this month's topic, Ethical Employee benefits.
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Top
Management Tip of the Month
Managing Benefits Ethically in a Mission-Based Organization
This topic was
suggested by a reader a few months ago, and gave me serious pause: why
wouldn't a not-for-profit manage its benefits ethically? So, I started
asking around, talking to staff, emailing ED/CEO's, phoning board
members, as well as some benefit managers for large nonprofits.....and
I found a number of interesting things, none of which were truly
surprises, but are worth recounting as cautionary tales:
First, most employees feel that their employers have more
money/resources for benefits than they are spending. Thus, the
employees feel that the nonprofit is being "cheap" yet again. "Why
should I be surprised?", said one mid-level manager to me, "the pay is
pitiful, so the fringe benefits probably should be, too."
Second, employees (for the most part) value their benefits more than
their pay. This is not to say that pay is not important, it is. But for
many, benefits are the difference between making it an not making it,
and this value is a moving target. What I mean by this is that our
employees mirror the for profit world in many ways. Younger employees
want cash (in salary) more than retirement or savings, employees
without children or serious medical conditions want retirement more
than prescription or medical coverage. Employees with teens want
dental/orthodontic coverage. Thus the mix of employees and their
matching to the available benefits really matters in terms of employee
satisfaction.
Third, in talking to ED/CEO's and boards, I heard great frustration
with benefits, particularly the complexity of the choices and the ever
increasing cost. It has been a long-standing maxim that there is more
health care cost in the cost of an American car than there is steel. I
have no doubt that that is true for many services nonprofits provide.
This is NOT a favorite subject for most senior managers. They pay more money every year and employees are less happy.
And none of this discussion brought up the issue of ethics, which I
think bears more than a little consideration. If we are in business to
do our mission, and help our communities, can and should we do it "on
the backs" of our employees? For many organizations who are struggling
to make ends meet, paying employees more (whether through salary or
benefits) is simply impossible. I have never met an exec who would not
love to pay his or her employees more, and most can't. But some who I
know can, and don't. Why?
Because they and the board have priorities in terms of expansion (which
always sucks up cash) to help more people, or they are in the middle of
establishing a cash reserve, or they are funding an endowment, all
laudable goals. But often not goals set with the knowledge of line
staff.
And what about the entire concept of living wage? See the links above
for some thoughts on this crucial issue, which put simply, shows that
minimum wage is not adequate in many parts of the country---when two
people, living together, working 40 hours a week each on minimum wage
cannot find ANY place to live, something is wrong, and that's what
living wage is about. Should your organization support referendums in
your community on this issue?
From all this discussion and my reading, I have a few suggestions for you as you work on this in your organization.
1. Set a policy at the board level about your goals
in compensation and benefits. If you believe in living wage, support it
and seek it. A policy is a strong message to your employees about how
you value them and your long term organizational goals in this area..
In setting this policy, of course, include significant staff input from
all levels.
2. Seek
flexible benefits to the extent allowable. There are a variety of
legislative and private options in this area. Simply put, allocate $X
per employee, and then allow employees to choose how that money is
spent. Remember, of course, that FICA taxes are NOT something that is a
choice! The more control employees have over their own benefits the
happier they are--or at least they will be less discontented.
3. Communicate,
communicate, communicate. Hold regular meetings about benefits, how to
use them, what they mean, what the limits are. Encourage ideas and
suggestions. Show what the organization pays per employee and how it
has risen. Educate, inform, communicate. If you take the step above and
make benefits flexible, make sure you help people avoid making the
choices that don't benefit them.
4. Seek advice from peer organizations and state and national trade organizations. Don't reinvent the wheel.
5. Look for
non-traditional benefits, such as paternity leave, time off for
adoptive parents, work from home, tuition reimbursement, etc. One
organization I worked with negotiated with their bank to offer all
their employees free checking accounts as a condition of the
organization keeping its banking in one place. This is a huge benefit
to lower paid employees and costs the agency nothing.
6. Make sure everyone gets the same deal.....no higher benefits for senior managers.
I tell nonprofit leaders all the time, we need to "walk the talk".
Benefits are a challenging, and expensive, part of our walk--one that
really matters to our employees, and thus should be of high priority to
the management team and board.
If
you found this hint helpful, there are lots more management, marketing, and
technology ideas for you in the "Ideas" section at
www.missionbased.com. Check them
out--they're free.
And, remember to take a look at the
Mission-Based Management
Blog.
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Top
Print Resources
My three recommendations for texts on Nonprofit benefits is shown below.
Employee Benefits, by Burton Beam
Nonprofit Compensation and Benefits Practices, by Carol Barbeito
Nonprofit Compensation, Benefits, and Employment Law, by David Samuels
Again, If you don't find enough choices here, type
"Employee Benefits" at Amazon.com and you'll have more choices
than you probably want!
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Top
Technology Ideas .
Can tech make you a better provider of benefits?
In a couple of ways. First, benefits are more and more complex. 401K,
403B? Roth IRA, Flexplan? Make sure you have accounting software that
allows your organization to track appropriate contributions and stay on
the sunny side of the street legally. Most packages do this, but work
with your vendor to see if they offer training specifically about
benefits management in relation to your accounting software.
Second, go online and subscribe to benefits newsletters, either from
your main insurer, or from your state association of nonprofits, or
other providers. Here's one from DPL&A consulting: http://weblog.dplaconsulting.com/blog,
and there are others through the links above.
If you found this hint helpful, there are lots more
management, marketing, and technology ideas for you in the "Ideas" section at
www.missionbased.com. Check them
out--they're free.
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Top
Training Schedule for Peter Brinckerhoff
Below you'll see the date, location, and topics
of public training I'm scheduled to do in the next few months. For more
information on a particular speaking engagement, get in touch with the contact
person listed in the right hand column, or
email me.
For more information on my availability throughout
the next 12-18 months, available topics, sample agendas, and fees go to
www.missionbased.com/training.htm
| Date |
City |
Topic |
Contact |
| 8/01/05 |
Cincinnati |
Mission-Based Management |
Ohio Association of Cemetery
Superintendents & Officials
Dan Applegatedan@amgardens.org |
| 8/08-09/05 |
Las Vegas |
Business Development |
NISH
Deborah Atkinson
datkinson@nish.org |
| 8/10/05 |
Houston |
Pricing |
Depelchin & Family
Services
Bob Hartman
RHartman@depelchin.org |
| 8/11/05 |
Houston |
Mission-Based Marketing |
United Way of the Texas Gulf
Coast
Russanne Kelly
RKelley2@uwtgc.org |
| 9/12/05 |
Anaheim |
TBA |
Goodwill Industries
International
Everett Shupe
everett.shupe@goodwill.org |
| 9/27/05 |
Albany, NY |
Nonprofit Stewardship |
NYSRA
Jacki Negri
jackie@nycap.rr.com |
Marketing Tip
Marketing and Ethical Employee Benefits
This will be short and sweet: employees are
your market here-and you need your good employees more than they need
you! So, treat them like a market: ask, ask, ask. Talk to your
employees regularly about benefits--you've read my suggestion about
providing control to employees through flex plans and other tools. But
most importantly, ask them what they want, ask them to bring you ideas,
ask them to be your eyes and ears on this issue. It affects them in
huge ways, so ask, ask, ask.
Obviously, you also need to tell them some things. Tell them that your
budget for compensation has limits, tell them that the organization is
limited by state and federal law, as well as funder oversight. But ask
more than you tell, and your employees will appreciate it.
If you want to see more about this in detail, take
a look at more about my book
Mission-Based Marketing; Second
Edition
If you found this hint helpful, there are lots more
management, marketing, and technology ideas for you in the "Ideas" section at
www.missionbased.com. Check them
out--they're free.
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Top
Future Topics in
2005-06 for the Mission-Based Management Newsletter....
| September |
Entrepreneurship |
| October |
Internal
Communications |
| November |
Board
Recruitment |
| December |
Better
Budgeting |
| January,
2006 |
Generation
Change |
| February |
Accountability |
| Send me
your topic suggestions at peter@missionbased.com |
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You asked, so here they are:
Past Single-Topic Issues of the Mission-Based Management Newsletter...
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