Estimated Reading Time: 4 minutes
Executive Director
Resource Type: Risk eNews
Topic: HR Risk and Employment Practices, Organizational Culture
Across the nonprofit sector, work teams are gathering for holiday-themed celebrations and modest gift-exchanges, wrapping year-end fundraising appeals and saying a fond farewell to departing board members. And in many workplaces, nonprofit executives, managers and supervisors are taking extra time and care to say ‘thank you’ to their most valuable assets: the people who bring nonprofit missions to life. Some leaders regard seasonal touch points as key to employee engagement. Yet if recent research is to be believed, true employee engagement can’t be bought with a gift card, catered ‘town hall’ meeting, or an extra day off. Why? One answer might be that expressing gratitude at the end of a challenging year simply doesn’t convert to the most valuable indiciator of employee engagement: trust.
In his research connecting neuroscience to employee engagement and trust, Paul J. Zak, founding director of the Center for Neuroscience Studies and professor of economics, psychology, and management at Claremont Graduate University, concludes that “most leaders… provide random perks,” in the hopes of fixing the engagement gap. In his article titled “The Neuroscience of Trust,” featured in the January-February 2017 edition of the Harvard Business Review, Zak points to the innumerable benefits of a high-trust culture, from stronger performance to less chronic stress and longer tenures. Workplace trust is more than a ‘nice to have’ aspect of culture; trusting teams are key to realizing an ambitious mission and seizing opportunities to grow and thrive.
In his research on the connection between oxytocin production in the brain and trust, Professor Zak found that “trust and purpose… mutually reinforce each other.” He explains that “joy on the job comes from doing purpose-driven work with a trusted team.” This finding is cause for celebration in the nonprofit sector, where purpose-driven work is fundamental! But the troubling truth is that despite the clear advantage our missions offer, many leaders fall short of inspiring the trust necessary to inspire joyful teams. Consider the following three tips for building greater trust–and real joy–at your nonprofit.
Costly turnover understandably leads many managers to consider ways to inspire loyalty and longevity. Gimmicky rewards and team building exercises sometimes increase cynicism rather than build trust. Science points to the powerful connection between trust and true workplace joy. Instead of relying on rewards that make you feel generous, focus instead on building trust. Start, or restart the process of building trust in your team by assigning achievable goals, communicating your vision, illuminating the path ahead, and asking for help.
Melanie Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your questions about the intersection of effective risk management and workplace culture 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!