Managing People in Social Enterprises

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Managing People in Social Enterprises
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Outline

• Volunteers
• Staff
• Boards

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Are Americans More Likely to Volunteer Than
Others?
All volunteering
Non-religious volunteering
1
1
0.9
0.9
0.8
0.8
0.7
0.7
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0
0
UK
UK
Italy
U.S.
Italy
U.S.
Spain
Japan
Ireland
Japan
Spain
France
Norway
Ireland
France
Sweden
Canada
Norway
Belgium
Canada
Australia
Sweden
Belgium
Germany
Australia
Germany
Netherlands
Netherlands
1983 data
Source Curtis, et al.
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What Affects Volunteering?

• Country-specific effects
• Demographics
• Volunteering increases with
• Age
• Education
• Employment
• Rural residence
• Religion

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Why Use Volunteers?

• Benefits
• Service delivery at reduced cost
• Contact with community

• Costs
• Control and reliability
• Supervision and recruiting expense
• Impact on paid jobs

Ref. J-B 22
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Designing an EffectiveVolunteer Program (1)

• Staff buy-in
• Clear job design and expectations
• Job categories (direct assistance,
  administration, )
• Meaningful and significant
• Part-time equivalent
• Fits with overall strategic goals
• Effective recruitment appeals
• Importance of job to clients and community
• Importance of job to NPO
• Importance of job to volunteer

Ref. J-B 22
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Designing an EffectiveVolunteer Program (2)

• 4. Interviewing and matching
• Fit
• Fitness
• 5. Training
• 6. Supervision
• Clear performance standards
• Performance measurement and evaluation
• Clear chain of command
• Firing volunteers?

Ref. J-B 22
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Volunteer Recruitment

• Warm body recruitment
• Lots of people, low training and skills
• Good for large events
• Campaign mass market to large groups
• Targeted recruitment
• Few people, specific skills
• Good for long-term volunteer staffing
• Campaign specific, targeted outlets
• Concentric circles recruitment
• Steady flow of a few volunteers
• Good for smaller organizations
• Campaign Word-of-mouth

Ref. J-B 22
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Volunteer Attrition

• Even if staff dont know volunteers opportunity
  cost, volunteers do
• Volunteers consider
• Market work value
• Next-best volunteer effort
• Value of leisure time

Ref. Young Steinberg
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Size of the Nonprofit Workforce
Source Salamon 1999
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Career Models

• Steady state one job, one career
• Linear Job changes serve an upward progression
  in pay and responsibility
• Spiral Job changes serve changing interests and
  sense of self-development
• Transitory Job changes for the sake of job
  changes

Source Driver 1980
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Nonprofit Staff Motivation

• Reasons for entering NP sector
• Commitment to social change 62
• Commitment to a particular cause 56
• Hours/location 32
• Reasons for taking current job
• Interesting, challenging work 66
• Extend personal skills 65
• Salary 19
• Prestige 14

Source Onyx MacLean
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Problems Attraction and Retention

• Nonprofit hospital executive
• Competing with for-profits for top talent is
  getting harder
• the A talent turns over quickly...
• but the C talent stays forever.

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The Compressed Salary Structure
C talent has perverse incentives
For-profits
Nonprofits
Compensation
A talent has perverse incentives, and is
difficult to recruit
Ability
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Hiring and Firing Laws

• Illegal to make decision
• based on irrelevant criteria
• based on inappropriately subjective criteria
• without making allowances for disabled applicants

Ref. J-B 23
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Compensation Factors

• Importance of position to organization
• Importance of person to organization
• Internal equity
• External competitiveness

Ref. J-B 23
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Compensation Schemes

• Flat
• Merit
• Seniority
• Incentive

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Identifying A Talentin the Organization
Talent to keep
Importance of position
Productivity of employee
Jack
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The Merits of Merit Pay

• 90 of nonprofit employees consider their
  contribution to be above average
• Merit pay rewards the truly above average
  employees
• ?40 of nonprofit workers will feel cheated
• Lower morale, lower productivity

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Seniority Pay

• Advantages
• Reliable and objective
• Cheap to administer
• Encourages long-term retention

• Disadvantages
• Encourages survival, not excellence
• Inequities grow regarding merit
• External competitiveness can suffer

Ref. J-B 23
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Incentive Pay

• Skill-based pay
• Programs that share cost savings
• Performance bonuses

Ref. J-B 23
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The functions of an effective Board

• Oversight of organization
• Avoiding abuse and neglect
• Keeping organization on its mission
• Administration
• Hiring/firing executive director
• Planning for the future
• Expertise on technical matters

• Fundraising
• Use of personal resources
• Connecting with community members with resources
• Marketing the organization for potential new
  givers
• Caring for the organizations public image
• Promoting the organization
• Representing the organization

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Standards for Board effectivenessAmerican Red
Cross

• Board adopts bylaws, and governs according to
  them
• Board conducts annual performance review of ED
• Board annually adopts a 3-5 year strategic plan
• Board reviews and approves annual budget and
  financial statements
• Board conducts annual self-evaluation
• All Board members are also donors

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Characteristics of effective Boards, according to
data

• Formal structure
• Members know and can articulate a common vision
• Low conflict with staff
• Engage in strategic planning
• Involved in organization with respect to time and
  money

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The higher standard of board responsibility

• There are many people with needs, and we are
  called to serve them
• All people need to give, and we are called to
  serve them, too.
• Our leadership helps our organization connect
  givers with the needy.
• Understanding the service we provide to donors
• Brings us to full stewardship
• Motivates people to truly give
• Makes us not a supplicant, but a partner in their
  goodness