Estimated Reading Time: 4 minutes
By Melanie Lockwood Herman
In a thought-provoking “CEO to CEO” feature article in the September/October 2010 edition of Associations Now magazine, four CEOs were asked: “If you could take back one business decision you’ve made in the last five years, what would it be?” Three of the four answers revealed regret in the area of human resources. In one instance a CEO delayed the difficult decision of terminating a poor performer. In the second case an executive director acknowledged the downsides of promoting a staff member to a position beyond his capability. And the third of four CEOs surveyed recounted the regret that ensued when she hastily hired her third choice in the applicant pool after the top two applicants turned down the job.
Every consumer has at one time or another experienced “buyer’s remorse.” On occasion I’ll second guess a purchase while standing in the checkout line. This happens most frequently at the grocery store! In a couple of recent cases I’ve discovered an out of style garment with the tags still attached hanging in my closet—a sure sign that my initial purchase was a bad idea.
Buyer’s remorse in the context of human resources may occur with greater-than-we-are-willing-to-admit frequency. During a presentation on managing human resource risk last week I asked members of an audience how many of them had faced a lawsuit alleging illegal or wrongful employment practices. Not a single hand was raised. When I asked if anyone in the room had made an ill-fated hiring decision, nearly every attendee hoisted an arm into the air. Several attendees seemed to be waiving at me and appeared eager to share their hiring mishap.
Although I’m convinced that there is no fool-proof way to eliminate the risk of a poor match between position and applicant, I’m equally certain that there are steps you can take to increase your chances of a good match and reduce the likelihood of frustration and regret. My tips include:
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your feedback on this article and questions about the NRMC’s resources at Melanie@nonprofitrisk.org or 703.777.3504. The Center provides free and affordable risk management tools and resources at www.https://nonprofitrisk.org/ and affordable consulting assistance.
“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!