Estimated Reading Time: 4 minutes
By Melanie Lockwood Herman
As anyone who’s ridden in my car, visited my home, or asked me about my taste in music knows, I’m a huge fan of Channel 33 on SiriusXM. My “First Wave” station plays music from the 1980s–from upbeat dance tunes to the bizarre poetic musings of Morrissey.
One of my favorite songs on the Channel 33 playlist is “A Little Respect,” by Erasure. I was reminded of that song this week while teaching a seminar on “HR Risk,” and later while reading the Schumpeter column article, “The Enemy Within,” in the July 25th issue of The Economist. The Schumpeter column (blog) explores business, finance and management topics and is named after the Austrian-American economist Joseph Schumpeter. “The Enemy Within,” begins by reminding the reader that, “Employees are often said to be a company’s biggest resource,” as well as “its biggest liability.”
The column continues by describing five types of “employees-turned enemies–or embarrassments:” the fraudster, the vandal, the high-flying trusted employee, the low-level employee who publishes embarrassing content on the Internet, and the insider who colludes with an outsider to embarrass or defraud his employer.
The column suggests “three precepts” for managing the risk of employees becoming your mission’s worst nightmare. The first two precepts are costly, both in terms of dollars and workplace trust: “focus on the people who have the greatest capacity to do harm–those who control money and information” and “install software” or hire “forensic accountants to double check the accounts.”
The third precept–treat your employees with respect–is not only the least expensive strategy, but it is the best way to prevent workplace ills ranging from fraud, to poor morale, to declining commitment and claims alleging unfair or illegal conduct. As Schumpeter wisely notes, too many organizations pay only lip service to the value of workplace respect. “They may embrace the rhetoric that nothing matters more than their people, but too many workers feel that nothing matters less.”
Nonprofit employers aren’t exempt from unkind treatment in the workplace. During interviews with staff at nonprofit clients, we too often hear about leaders who direct the lion’s share of institutional compassion outward, saving only meager scraps of kindness for the people frequently labeled the nonprofit’s “most valuable assets.”
If respect isn’t a core value in your workplace, or if leadership’s compassion is externally facing, resolve to take the following steps. We’ve used the title of another popular song–R-E-S-P-E-C-T–to help you remember these tips.
It isn’t easy changing the culture of an organization from one that treats staff like interchangeable parts of a machine into one whose words and deeds reflect the value that people are the mission’s greatest asset. What’s easy is seeing that trust and respect are essential parts of the equation.
Melanie Herman is executive director of the Nonprofit Risk Management Center. She welcomes your questions and comments on any topic related to risk management. Melanie can be reached at 703.777.3504 or Melanie@nonprofitrisk.org.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of the Center to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of the Center. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The Center team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!