
Our free Big Ideas newsletter is for Boards of Directors, management personnel, other non profit employees and any one else with an interest in the non profit sector.
Will “Worth Fighting For” Be Worth Fighting For?
23 Ontario non-profits are on strike in an OPSEU-organized initiative it has titled “Worth Fighting For”. Learn more about its implications.
Labour Disruptions Affect Non-Profit Boards Too
Management is front and centre when a strike happens, but that doesn’t mean non-profit boards are off the hook. They have a vital role to play.
Too Cautious? Try This!
The case can be made that today’s non-profit managers are reluctant to deal with underperforming staff. Here are ideas for addressing that issue.
Results of Last Edition’s Survey
In our last edition we asked about your experience with systems-level change. Unfortunately, we encountered a glitch in our survey data collection system. But that’s systems for you.
The Story
Can the Ontario Public Service Employees Union (OPSEU) force the Ontario government to increase funding for community services for children and adults, so its union members will be better paid? If so, it will have succeeded where others have not.
The Skinny
OPSEU’s current "Worth Fighting For" campaign is said to involve 23 bargaining units that are on strike or locked out, impacting nearly 4,000 workers and many more thousands of children, adults and families who access community and social services in this province.
The strategy behind “Worth Fighting For” appears to be as follows:
· Create pressure across many non-profit employers at once rather than bargaining organization by organization.
· Achieve one or more settlements with meaningful wage gains.
· Create the prospect that other organizations will face challenges recruiting and retaining staff if they do not match those gains.
· Assume these non-profit organizations will pressure the provincial government for more funding because they can’t fund comparable settlements from existing budgets.
· Assume the provincial government will accede to this pressure and increase funding.
How much might all this cost the government? Third-party estimates suggest the tab could be in the neighbourhood of $500 million per year, if the settlements were in the 10% neighbourhood. For the average community organization with a total budget of $20 million, this would equate to about $1.5 million per year.
But what happens if the government doesn’t concede and pony up? Then individual organizations will need to come up with money for increases on their own. The obvious place for them to find it is to reduce the number of employees, since staffing costs make up 75% to 80% of most non-profits’ budgets. Presumably this is a solution that satisfies no one. So, for OPSEU there are risks involved, in the form of potentially fewer members once the disruptions are over.
The Likely Result
If past experience is an indicator, OPSEU will achieve partial success. That success would take the form of larger wage gains than would have been achieved otherwise, financed by some additional funding from the Ontario government to the organizations as an offset. But it won’t be enough to address all of OPSEU’s and the community organizations’ concerns related to:
· Wage increases that help close compensation gaps with comparable sectors.
· Recruitment and retention improvements to address chronic staffing shortages.
· Recognition of Bill 124-related wage suppression.
· Improved working conditions and workload management.
· Increased provincial base funding for developmental, community, and social services.
The Ironies
Two ironies emerge from this particular situation.
First, most government-funded non-profits are not opposed to higher wages for their employees, far from it. At the same time, their hands are tied by the amount of money they get from the province. It’s not like they generate large surpluses that sit unspent in their bank accounts. And it’s not like they haven’t asked for more. Their resistance to paying more in wages is based on financial prudence and sustainability.
Second, these same non-profits would also like more money from government to address the waiting lists that exist for many of their services. Even if wages are raised through OPSEU’s action, that won’t be the end of the call for more money. Far from it.
The BIG IDEA
Our BIG IDEA for this week is to wish there was a big pot of money that would successfully resolve this dilemma.
The Story
When non-profit human service employees walk out in a labour dispute, management is forced to assume additional responsibilities. What is less recognized is that volunteer boards of directors also are significantly impacted.
Research suggests that during a labour disruption, non-profits boards must zero in on two specific responsibilities. First, they must ensure the organization continues to fulfill its mission safely, legally, financially, and ethically. Second, boards must ensure the organization is in a position to serve people and rebuild relationships after the dispute ends.
The Skinny
If that sounds easy, it’s not. But research also says there are principles every board can follow.
1. Govern, Not Manage
During a strike or lockout, the board should:
It should not:
2. Focus on Service Continuity
For human service organizations, including those providing developmental services, children's services, mental health support and shelters, the primary governance question is “Can we continue to provide safe services to vulnerable people?”
To focus on service continuity, Boards should require the Executive Director/CEO to report frequently on:
A strike becomes a governance issue when service continuity is threatened.
3. Continue to Fulfill the Board’s Fiduciary Duties
Directors remain responsible for:
Boards should receive frequent updates regarding:
· Cash flow
· Overtime
· Staffing
· Management coverage
· Legal costs
4. Pay Attention to Health and Safety
The board should be satisfied that management is:
For residential service providers, fatigue among management staff covering shifts is often one of the greatest risks.
5. Maintain a Good Relationship with the Executive Director/CEO
Labour disputes place extraordinary pressure on Executive Directors/CEOs.
Boards should:
6. Understand the Difference Between Positions and Interests
Boards should understand:
Union position: wage increases, staffing, benefits.
Employer position: financial sustainability, service continuity.
Shared interests:
7. Protect Organizational Reputation
Public communications should be:
Remember that the organization must work with employees after the dispute ends.
8. Plan for Settlement Before Settlement Happens
The board should ask:
The period immediately after settlement can be as challenging as the strike itself.
9. Document Board Oversight
Minutes should reflect:
If a serious incident occurs, the board should be able to demonstrate that it exercised appropriate oversight.
The Story
In a recent newspaper, authors Howard Levitt and Dante Capannelli argued that leadership in today’s organizations has become more cautious, due to reluctance to deal with employee performance issues. That caution comes from “the perceived personal and institutional risks associated with exercising oversight”.
The Skinny
If this is indeed the case, how do you deal with performance issues effectively and without risk? Here are some ideas.
1. Address issues early
Don’t let them fester. Get at them at the first sign.
2. Focus on behaviour and results, not personality
Describe:
Specific examples are essential.
3. Be clear about expectations
Ensure the employee understands:
4. Document consistently
Documentation should include:
Documentation should be factual, objective, and free of emotion.
5. Distinguish between skill, will, and capacity
Not all performance problems have the same cause.
Skill Issue
The employee does not know how.
Response:
Will Issue
The employee knows how but is not performing.
Response:
Capacity Issue
The employee may be struggling due to:
Response:
Treating all problems as being discipline-related is a common mistake.
6. Understand the duty to accommodate
Ontario employers have obligations under the Ontario Human Rights Code.
Performance concerns may be connected to:
7. Coach more, discipline less
Employees are more likely to improve when they believe their manager wants them to succeed.
8. Use progressive discipline properly
Where discipline becomes necessary, especially in unionized environments, progressive discipline is often appropriate.
Typical progression:
(Unionized workplaces should always consult HR and collective agreement provisions.)
9. Be respectful
· Describe what occurred.
· Explain the effect.
· State the required standard.
· Discuss what assistance is available.
· Set a review date.
· Keep the conversation professional, calm, and private.
10. Remember the non-profit context
Many Ontario non-profits operate with:
11. Build a culture of continuous feedback
The most successful organizations make feedback routine rather than exceptional. Managers should regularly discuss:
When feedback becomes normal, performance issues become easier to address.
The BIG IDEA
Based on our experience working with community organizations, managers can prevent many performance issues by being present in the work area. We know this can be challenging, especially in residential situations where the organization might have a number of locales overseen by an individual manager. But the more you can be present, the better.