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By Melanie Lockwood Herman
Productive and engaged are words that come to mind when I picture a high-performing employee in a nonprofit. The literature on performance management is packed with advice about inspiring great performance among the members of a staff team. Some of the techniques I often cite in workshops include the generous sharing of information, eliminating “class” distinctions between employees who deliver services and those who provide internal support (finance, administration, risk management, etc.), and helping employees understand how their work advances a nonprofit’s mission. Recently I’ve become intrigued by the link between happiness and productivity. Are happy employees more productive? What should leaders do to inspire happiness at work? New research identifies factors that contribute to or detract from being happy and also highlights the link between happiness and productivity in the workplace.
In an interview featured in the January-February 2012 edition of the Harvard Business Review, Harvard psychology professor Daniel Gilbert explains that “We know that people are happiest when they’re appropriately challenged—when they’re trying to achieve goals that are difficult but not out of reach,” adding that “People blossom when challenged and wither when threatened.” In an article titled “The Future Of Happiness Research,” doctoral student Matthew Killingsworth writes that “…no matter what people are doing, they are much less happy when their minds are wandering than when their minds are focused.” Killingsworth explains that the research refutes the belief held by some managers that “a certain amount of daydreaming is a good thing” with regard to overall employee productivity.
A challenged and focused workforce sounds productive, but is there an even more compelling determinant of happiness? Daniel Gilbert cites our social nature as the most significant predictor of personal happiness. According to Gilbert, a deep sense of connection to others—friends, co-workers, family—is the most important predictor of personal happiness.
As you reflect on the human “face” of risk in your nonprofit and the relationship between happy workers and mission fulfillment, ask:
Risk management isn’t limited to keeping clients and caregivers safe from harm. The risk of an exodus of top performing staff will increase as the economy continues to improve and your competitors start hiring. Instead of waiting to discover that you’re understaffed, look for ways to make your agency an employer of choice. If you want to reap the benefits of a happy workforce, collaborate to set challenging but achievable goals, help your team focus on top priorities, and remember that socializing shouldn’t be restricted to sanctioned office holiday parties.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your ideas about any risk management topic, feedback on this article and questions about the Center’s resources at Melanie@nonprofitrisk.org or 703.777.3504. The Center provides risk management tools and resources at www.https://nonprofitrisk.org/ and offers consulting assistance to organizations unwilling to leave their missions to chance.
“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!