HR Planning

Overview
Organizations need to develop strategic HR goals that are aligned with the overall organizational vision, mission, values and objectives. People are the main resource that nonprofits have for delivering services. Planning how your organization will meet its current and future HR needs and how people will be supported and nurtured within your organization is critical for success. HR planning is a complex, growing area of HR. In this section of the HR Toolkit, you'll find information on:

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HR Planning

Strategic HR Planning
Strategic HR planning is an important component of strategic HR management. It links HR management directly to the strategic plan of your organization. Most mid- to large sized organizations have a strategic plan that guides them in successfully meeting their missions. Organizations routinely complete financial plans to ensure they achieve organizational goals and while workforce plans are not as common, they are just as important. Even a small organization with as few as 10 staff can develop a strategic plan to guide decisions about the future. Based on the strategic plan, your organization can develop a strategic HR plan that will allow you to make HR management decisions now to support the future direction of the organization. Strategic HR planning is also important from a budgetary point of view so that you can factor the costs of recruitment, training, etc. into your organization's operating budget. Strategic HR management is defined as:

Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders.
Source: Herman Schwind, Hari Das and Terry Wagar, Human Resource Management: A Strategic Approach.

In this Section:

Introduction to strategic HR planning The strategic HR management planning process Documenting the strategic HR plan Implementing the strategic HR plan Related HR Management Standard: Standard 3.3 All employees have a work plan and performance objectives that identify the tasks/activities and expected results for future performance.

What is this?

Introduction to strategic HR planning

The overall purpose of strategic HR planning is to:

Ensure adequate human resources to meet the strategic goals and operational plans of your organization - the right people with the right skills at the right time

Keep up with social, economic, legislative and technological trends that impact on human resources in your area and in the sector Remain flexible so that your organization can manage change if the future is different than anticipated

Strategic HR planning predicts the future HR management needs of the organization after analyzing the organization's current human resources, the external labour market and the future HR environment that the organization will be operating in. The analysis of HR management issues external to the organization and developing scenarios about the future are what distinguishes strategic planning from operational planning. The basic questions to be answered for strategic planning are:

Where are we going? How will we develop HR strategies to successfully get there, given the circumstances? What skill sets do we need? Related HR Management Standard: Standard 6.1 The organization has a process for regularly reviewing staffing needs.

What is this?

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The strategic HR planning process

The strategic HR planning process has four steps:

Assessing the current HR capacity Forecasting HR requirements Gap analysis Developing HR strategies to support organizational strategies

Assessing current HR capacity

Based on the organization's strategic plan, the first step in the strategic HR planning process is to assess the current HR capacity of the organization. The knowledge, skills and abilities of your current staff need to be identified. This can be done by developing a skills inventory for each employee.

The skills inventory should go beyond the skills needed for the particular position. List all skills each employee has demonstrated. For example, recreational or volunteer activities may involve special skills that could be relevant to the organization. Education levels and certificates or additional training should also be included. An employee's performance assessment form can be reviewed to determine if the person is ready and willing to take on more responsibility and to look at the employee's current development plans.

Forecasting HR requirements
The next step is to forecast HR needs for the future based on the strategic goals of the organization. Realistic forecasting of human resources involves estimating both demand and supply. Questions to be answered include:

How many staff will be required to achieve the strategic goals of the organization? What jobs will need to be filled? What skill sets will people need?

When forecasting demands for HR, you must also assess the challenges that you will have in meeting your staffing need based on the external environment. To determine external impacts, you may want to consider some of the following factors:

How does the current economy affect our work and our ability to attract new employees? How do current technological or cultural shifts impact the way we work and the skilled labour we require? What changes are occurring in the Canadian labour market? How is our community changing or expected to change in the near future?

To read more about the changing labour force and why it matters to non-profit employers, go to the Diversity at Work section of the HR Toolkit:

Why diversity at work matters

Gap analysis
The next step is to determine the gap between where your organization wants to be in the future and where you are now. The gap analysis includes identifying the number of staff and the skills and abilities required in the future in comparison to the current situation. You should also look at all your organization's HR management practices to identify practices that could be improved or new practices needed to support the organization's capacity to move forward. Questions to be answered include:

What new jobs will we need? What new skills will be required? Do our present employees have the required skills?

Are employees currently in positions that use their strengths? Do we have enough managers/supervisors? Are current HR management practices adequate for future needs?

Developing HR strategies to support organizational strategies

There are five HR strategies for meeting your organization's needs in the future:

Restructuring strategies Training and development strategies Recruitment strategies Outsourcing strategies Collaboration strategies

1. Restructuring strategies This strategy includes:

Reducing staff either by termination or attrition Regrouping tasks to create well designed jobs Reorganizing work units to be more efficient

If your assessment indicates that there is an oversupply of skills, there are a variety of options open to assist in the adjustment. Termination of workers gives immediate results. Generally, there will be costs associated with this approach depending on your employment agreements. Notice periods are guaranteed in all provinces. Be sure to review the employment and labour standards in your province or territory to ensure that you are compliant with the legislation.

Termination packages are governed by case law as well as by employment standards legislation (which only states the bare minimum to be paid). Consult with a lawyer to determine the best approach to termination packages.

Attrition - not replacing employees when they leave - is another way to reduce staff. The viability of this option depends on how urgently you need to reduce staff. It will mean that jobs performed in the organization will have to be reorganized so that essential work of the departing employee is covered. Careful assessment of the reorganized workloads of remaining employees should include an analysis of whether or not their new workloads will result in improved outcomes. It is important to consider current labour market trends (e.g. the looming skills shortage as baby boomers begin to retire) because there may be longer-term consequences if you let staff go.

Sometimes existing workers may be willing to voluntarily reduce their hours, especially if the situation is temporary. Job sharing may be another option. The key to success is to ensure that employees are satisfied with the arrangement, that they confirm agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a prerequisite for success.

Caution must be taken when considering the voluntary reduction of hours by existing staff. A change in working conditions (e.g. hours worked per week) can be considered "constructive dismissal" - especially in the case of permanent staff. Ensure that you obtain legal advice and there is full written documentation.

Your analysis may tell you that your organization may have more resources in some areas of the organization than others. This calls for a redeployment of workers to the area of shortage. The training needs of the transferred workers needs to be taken into account. 2. Training and development strategies This strategy includes:

Providing staff with training to take on new roles Providing current staff with development opportunities to prepare them for future jobs in your organization

Training and development needs can be met in a variety of ways. One approach is for the employer to pay for employees to upgrade their skills. This may involve sending the employee to take courses or certificates or it may be accomplished through on-the-job training. Many training and development needs can be met through cost effective techniques. See the HR Toolkit section on Learning, Training and Development for more information. 3. Recruitment strategies This strategy includes:

Recruiting new staff with the skill and abilities that your organization will need in the future Considering all the available options for strategically promoting job openings and encouraging suitable candidates to apply

For strategic HR planning, each time you recruit you should be looking at the requirements from a strategic perspective. Perhaps your organization has a need for a new fundraiser right now to plan special events as part of your fundraising plan. However, if your organization is considering

moving from fundraising through special events to planned giving, your recruitment strategy should be to find someone who can do both to align with the change that you plan for the future. 4. Outsourcing strategies This strategy includes:

Using external individuals or organizations to complete some tasks

Many organizations look outside their own staff pool and contract for certain skills. This is particularly helpful for accomplishing specific, specialized tasks that don't require ongoing fulltime work. Some organizations outsource HR activities, project work or bookkeeping. For example, payroll may be done by an external organization rather than a staff person, a short term project may be done using a consultant, or specific expertise such as legal advice may be purchase from an outside source. When deciding to outsource to an individual, ensure you are not mistakenly calling an employee a consultant. This is illegal and can have serious financial implications for your organization. To understand the differences between employees and self-employed people, visit the Canada Revenue Agency's website. Each outsourcing decision has implications for meeting the organization's goals and should therefore be carefully assessed. 5. Collaboration strategies Finally, the strategic HR planning process may lead to indirect strategies that go beyond your organization. By collaborating with other organizations you may have better success at dealing with a shortage of certain skills. Types of collaboration could include:

Working together to influence the types of courses offered by educational institutions Working with other organizations to prepare future leaders by sharing in the development of promising individuals Sharing the costs of training for groups of employees Allowing employees to visit other organizations to gain skills and insight

ABC Social Services provides support services to families in need. It has reviewed and updated its strategic plan. As part of the strategic planning process the Board Planning Committee learned that 15% of their social workers are planning to retire over the next two years and recruitment of social workers has become increasingly competitive. Outcome of the strategic planning process: One strategy developed by the Board Planning Committee is to make ABC Social Services a preferred employer among organizations in the area. Possible HR planning strategies to meet this organizational strategy are:

Develop a recruitment and retention strategy based on discussions with the social workers. Items to consider are: flexible work arrangements; contracting with a counselor for the social workers on an as-needed basis (give them someone to talk to about the stresses of the job); provide professional development opportunities that give them increased skills for dealing with the issues their clients face. Tie the pay scale of the social workers to the pay scales of social workers working for the municipality (the appropriate percentage to be determined. For example, the pay of social workers in the organization may be tied at 90% of the pay at the municipal level). Provide placements for social work students and show them that ABC Social Service would be an excellent employer after graduation. Decide the unique strategies that you will use to position yourself as an employer of choice, based on needs of your employees and potential candidates.

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Documenting the strategic HR plan

Once the strategies for HR in your organization have been developed they should be documented in an HR plan. This is a brief document that states the key assumptions and the resulting strategies along with who has responsibility for the strategies and the timelines for implementation.

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Implementing the strategic HR plan

Once the HR strategic plan is complete the next step is to implement it:

Agreement with the plan

Ensure that the board chair, executive director and senior managers agree with the strategic HR plan. It may seem like a redundant step if everyone has been involved all the way along, but it's always good to get final confirmation.

Communication
The strategic HR plan needs to be communicated throughout the organization. Your communication should include:

How the plan ties to the organization's overall strategic plan What changes in HR management policies, practices and activities will be made to support the strategic plan How any changes in HR management will impact on staff including a timeframe if appropriate How each individual member of staff can contribute to the plan How staff will be supported through any changes How the organization will be different in the future

It is impossible to communicate too much (but all too easy to communicate too little), especially when changes involve people. However, the amount of detail should vary depending upon the audience.

Legislation and mandate

Ensure that the actions you are considering are compliant with existing laws, regulations and the constitution and bylaws of your organization. To review laws relating to employment, visit the HR Toolkit section on Employment Legislation and Standards

Organizational needs
Whether you are increasing or reducing the number of employees, there are implications for space and equipment, and on existing resources such as payroll and benefit plans.

Evaluation
HR plans need to be updated on a regular basis. You will need to establish the information necessary to evaluate the success of the new plan. Benchmarks need to be selected and measured over time to determine if the plan is successful in achieving the desired objectives.

Next Section: Operational HR Planning

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HR Planning
Operational HR Planning
All organizations engage in HR planning at an operational level - even those that do not have a strategic plan. At the operational level, good HR planning is in part based on thinking ahead about the organization. At an operational level, organizations put HR management practices in place to support management and staff in achieving their day-to-day goals. Whether it's determining how many staff are needed to deliver services over the next year or how performance will be monitored, HR management practices and activities need to be planned to answer the question: "Where is our organization going and how will it get there?" The HR Toolkit has detailed information that you can use to develop an operational plan for your human resources practices and activities. Topics include:

Employment Legislation and Standards Guideline to Developing HR Policy Getting the Right People Learning, Training and Development Compensation and Benefits Keeping the Right People

If your organization already has good HR management practices in place they should be reviewed on an ongoing basis, every two to three years, to ensure that they still meet organizational needs and comply with legislation.

At an operational level, organizations also need to be aware of the interdependencies between operational decisions and HR management practices. Decisions made on one aspect of human resources often have an impact on another aspect of HR management.

Related HR Management Standards: Standard 3.3 All employees have a work plan and performance objectives that identify the tasks/activities and expected results for future performance. What is this? Standard 6.1 The organization has a process for regularly reviewing staffing needs.

Operational objective: Expand the services offered over the next two years Human resources requirement: Five new staff members Operational decision: Hire recent graduates or others with little direct work experience to reduce hiring costs Implications for HR management practices: The operational decision to hire new graduates will impact on practices such as:

Supervision - there will be a need for more supervision On-the-job training - there will be a need for increased training

Operational objective: Reduce staffing costs Human resources requirement: Reduce staff by two fulltime equivalents Operational decision: The reduction in staff will be made by not renewing the contract for two

term employees Implications for HR management practices: The operational decision to not renew two contract positions will impact on issues and practice such as:

Staff morale - the work of contract employees will have to be assessed to determine which positions to terminate so that the impact on the clients and organization is minimized; support may be needed for the employees who remain Job design - other positions will need to be reviewed to determine which staff, if any, have the knowledge and skills to take over the essential work of the positions that are being eliminated; changes to the duties for existing staff will need to be negotiated Training - training will need to be provided to staff taking on new duties, if appropriate Termination process and cost the termination process will need to be planned to ensure that it complies with policies and legislation and there will likely be a cost for notice and severance pay

In the absence of a strategic plan your organization can still take a proactive approach to HR management. By developing good HR management practices and thinking ahead, you can create a good work environment where staff can be productive and focus on providing the best possible service.

Next Section: Succession Planning

HR Policies & Employment Legislation

Employment Legislation and Standards

The information provided here does not constitute legal advice. If you require legal advice, please consult a lawyer.

Employment standards are the minimum standards of employment for workplaces required by law. Employment standards cover many aspects of employment including, but not limited to, the following topic areas:

Minimum wage

Resolving disputes

Minimum daily pay Meal breaks Payment of earnings (paydays) Hours of work Overtime Statutory holidays Annual vacation Vacation pay Employment of people under 18 Leave from work

Termination Maternity leave Weekly day of rest Deductions Keeping records Sexual harassment Probationary periods Parental leave Definition of "employee"

Any HR policies that you develop around the above topics, and any others covered by employment standards, must not provide less than what is offered in the legislation and/ or regulations. The employment standards legislation offers minimum standards; employers are free to develop policies or practices that enhance (provide better standards) than what is allowed for in the law. Jurisdiction: Practically all nonprofits organizations in Canada fall under provincial/territorial jurisdiction. Below are links to provincial/territorial departments dealing with employment standards.

Alberta
Alberta Human Resources and Employment - Employment Standards This site includes in depth information about several topics right on the home page. There are many useful resources in the publications section, including a printable guide to the standards and facts sheets.

British Columbia
BC Ministry of Skills Development and Labour - Employment Standards Branch This is a comprehensive website that includes a guide to employment standards, fact sheets (including some translated into several languages) and frequently asked questions. Some of the fact sheets have been translated into French.

Manitoba
Manitoba Labour and Immigration - Employment Standards Division

This bilingual website has a printable guide to the Employment Standards as well as several fact sheets on different topics.

New Brunswick
Employment Standards Branch This bilingual website includes general information about Employment Standards and several helpful fact sheets on specific topics covered by the standards.

Newfoundland and Labrador

Newfoundland and Labrador Labour Relations Agency - Labour Standards Division This site has a useful frequently asked questions section organized by different topics and there is a sample statement of employment to use with new employees. There is also contact information if you have questions about any subjects not covered on the site.

Northwest Territories
Northwest Territories Department of Justice - Labour Standards This site contains little information about the Labour Standards themselves, but it does provide contact information for the Labour Services office - we encourage you to be in touch with them if you have any questions about labour standards in your organization.

Nova Scotia
Nova Scotia - Labour & Workforce Development This site has a useful guide to the Labour Standards, a frequently asked questions section organized by topic area and a special section on minimum wage.

Nunavut
Government of Nunavut - Department of Justice There is little information on the government of Nunavut site regarding the Labour Standards Act of Nunavut. You can contact the Labour Services Officer in the Department of Justice with any questions you have regarding Labour Standards.

Labour Services Officer Phone - 867-975-7293 Fax - 867-975-7294

Ontario
Ontario Ministry of Labour - Employment Standards Program This is a comprehensive website that includes a frequently asked section. Under the Employment Standards section, you'll find details on Employment Standards, fact sheets on several topics, bulletins and information on filing a claim.

Prince Edward Island

Ministry of Community and Cultural Affairs, Labour and Industrial Relations Division Employment Standards This site contains general information about Employment Standards. In the "YOU CAN ASK US ABOUT" section, you'll find a useful guide to the Employment Standards, fact sheets on several topics and frequently asked questions.

Qubec
Commission des normes du travail - Labour Standards in Qubec This extensive site contains quick links to many topics, including psychological harassment in keeping with the recently passed law. There is also a frequently asked questions section and in the employers section you'll find information about training on labour standards.

Saskatchewan
Saskatchewan Department of Labour - Labour Standards This site has many useful fact sheets organized by topic area as well as a frequently asked questions section.

Yukon
Department of Community Services - Labour Services

This site has some basic frequently asked questions as well as a PDF document of the Employment Standards Act. There is also contact information for any questions you have about the employment standards.

Next Section: Human Rights Legislation

Getting the Right People

Hiring an Executive Director
The board is responsible for hiring an executive director to ensure there is a skilled manager at the helm to implement the organization's mission and vision. In this section, you will find information geared specifically for board members to address the unique considerations of hiring an executive director.

In this Section:

Planning considerations for hiring an executive director Assessing candidates Transitioning to a new executive director Succession planning

While the term executive director is used throughout this discussion it is understood it is only one of many terms (such as president & CEO, senior manager and general manager) used by organizations in the sector to refer to their most senior staff person. The same is true of terms used for other positions so that an accountant in one organization may be a finance manager or CFO in another. The important consideration is not the title but the work-related responsibilities and their value within the organization.

Planning considerations for hiring an executive director

There are several discussions and action items that the board of directors needs to do prior to advertising the vacancy. These include:

Deciding on a process

The board of directors needs to discuss and agree on a process as well as who is responsible for doing what during the search, hiring and transitioning. Determine how you will handle conflict of interest in the case that a colleague, friend or relative of a board member wants to apply for the position and decide the extent of your search for suitable candidates: local or beyond.

Setting up a search committee

Set up a small search committee that includes someone with HR expertise (this does not necessarily have to be a board member).

Reviewing the organization's needs

You have the opportunity now to review the skills and experience you require in an executive director. Perhaps what you need going into the future is a different skill set than what you required in the executive director that is leaving your organization. Get input from board members plus staff and other stakeholders and review your strategic plan to determine the job profile for the new executive director and based on the job profile, determine the minimum requirements for the position. This could also be an ideal time to review the salary scale for the position.

Sample Executive Director Job Profile & Job Description

Advertise
Depending on the size of the organization's budget, the cost of advertising in the newspaper or professional journals may not be feasible. Investigate job boards (including online ones), advertise on your own website, through relevant listservs, broadcasting through professional associations and by word of mouth. Back to top

Assessing candidates
Initial screening
The search committee needs to review all submitted applications and determine who doesn't meet the minimum requirements and who to call in for an initial interview. Have a board

member (or staff support person) arrange the interview timeslots with the candidated. Consider how interviews will be handled if you have a mixture of local and non-local candidates.

The Search Firm Guide: Tips for Utilizing Search Firms (PDF 49KB) Larger organizations with larger budgets may decide to hire a search firm that specializes in executive searches for nonprofit organizations. This document offers helpful information like how to select an appropriate firm, the types of fees and suggestions to ensure the best results.

Interviewing
The search committee will need to determine their list of interview questions. It is advisable to have a lawyer or an human resources professional review the questions to ensure they are legally permissible. Depending on the number of suitable applicants and the search committee's decision about how many rounds of interviews they feel necessary, the search committee may do an initial interview and recommend two to three candidates to be interviewed by the full board during a second interview. Or, the search committee may recommend two to three candidates to be interviewed directly by the board. While the search committee and board may be interested in the staff's perceptions of potential candidates, the final decision of whom to hire rests with the board.

Hiring a Director for a Non-profit Agency (PDF 161KB) A step-by-step guide that includes a guide for interviewing candidates as well as a candidate evaluation form. Hiring and Performance Appraisal of the Executive Director (PDF 285KB) A workbook developed by the Muttart Foundation as a guide for boards of directors who are in the process of hiring a new executive director and/or providing the executive director with a performance appraisal. Interview Guide for Hiring Executive Directors (PDF 140KB) Developed for Big Brothers Big Sisters of Canada with the support of the HR Council, this guide provides a competency profile for an executive director and includes sample questions for each competency area.

Approval
The final hiring decision is made by the full board. Back to top

Transitioning to a new executive director

The following information assumes that there is an exiting executive director. In some instances, however, boards might be hiring the very first executive director for a previously all-volunteer organization - in which case the following information would not be relevant.

Develop a transition plan

Depending on the size of your organization and the length of notice given by the outgoing executive director, the board may need to appoint a current staff member as an interim or acting executive director. It will be helpful for the outgoing executive director to provide a list of important upcoming dates (e.g. special events, meetings, speaking engagements, etc.) so that an alternate representative can attend. Ask the outgoing executive director to ensure files are up-to-date and clearly marked. If there is no cross-over between the outgoing and new executive director, have a board member meet with the executive director to find out where important documents are filed. Determine who has authority for signing cheques, speaking on behalf of the organization, authorizing staff requests, etc. and communicate this information to all staff.

External communication
Word will spread that your organization is in transition. As a board, discuss your message to the public so that you present a consistent message. Funders and key stakeholders will appreciate being told personally of the transition rather than reading about it in the paper or hearing the new second-hand. With the outgoing executive director's assistance, develop a list of donors and key stakeholders and send out a letter or e-mail to let them know of the transition and the plans of the board of directors to manage the transition.

Internal communication

The departure of an executive director plus time without a senior staff person and the arrival of a new person can be stressful for staff. Keeping staff informed of the process will make it easier on them during this time. Have a board member meet with staff as early as possible to give details of the transition plan.

Assure any applicants for your vacant executive director position that you will respect their confidentiality. Ensure that the search committee, full board of directors and any staff involved in the process understand the importance of confidentiality as some applicants will likely not want it revealed to their current employer that they have applied elsewhere.

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Succession planning
It is very important for boards to spend some time reflecting on what they would do if, or when, the executive director leaves. All too often, boards find that they are unprepared for such an occurrence and are left scrambling to quickly replace that person. There are many examples of an executive director leaving only to have the organization fall into disarray: funders withdraw resources and other key staff members leave due to lack of effective leadership. Even when provided with adequate notice, Boards sometimes find themselves in the position of having to scramble to find an interim solution.

Developing a succession plan for the executive director

In some instances, the Board may decide that there needs to be a "second in command" who has the capacity to replace the executive director in the future. This means:

Identifying that person in collaboration with theexecutive director Ensuring that the person is motivated to take on the top job Developing a plan to ensure that the eventual successor gains the requisite skills and knowledge to take the job on Ensuring that the second in command is exposed to a broad range of experiences so that he or she has a wider understanding of the operations of the organization

The plan could include a formalized process of mentoring or coaching and training in more specific aspects of the job. When the size of the organization permits, it would be preferable to have more than one person identified as a potential successor to the ED.

In a small organization, it may not be possible to groom a successor from within the ranks of existing staff. To ensure continuity and stability when an executive director leaves, employees may be paired to cross-train each other to ensure there are two people on staff who know each job. The board chair should have a conversation with the executive director on an annual basis regarding his or her career aspirations. While the executive director is not required to share any career goals, the conversation can allow for a frank discussion about future plans.

When an executive director leaves and there is no succession plan

When faced with the loss or impending loss of the executive director, these kinds of questions quickly surface:

Should we hire from within or look for an external candidate? Do we have anyone internally who is qualified? Whether we hire internally or externally, does anyone really know the specifics of what that person was doing? What kind of impact will this change have on our capacity to deliver on our mandate and on our relationships with our clients, donors and volunteers? What do we tell our stakeholders?

Steps to put in place:

First and foremost, the board is responsible for drawing up a plan of action and effectively communicating it to the rest of the staff as soon as possible. This is necessary to demonstrate that the board is taking decisive action, to deal with any misinformation that may be generated by a quick departure and to ensure that all of the employees' questions are answered. The board must also communicate its plan of action for replacing the executive director in a timely manner with its funders. Funders will need to be assured that plans and programs are on target and deliverables will not change. With no succession plan or second in command identified, the Board may want to name an interimexecutive director until a replacement is selected. This choice should be made wisely because someone with the right skills and knowledge needs to be chosen. If a person is asked to take on the executive director responsibilities in addition to his or her job, there should be an adjustment in that employee's compensation to reflect the additional responsibilities and work load. Another option is to ask a qualified group of two or three employees to co-manage the organization by sharing the executive director responsibilities. In order for this approach to be effective, it requires a clear understanding of the various aspects of the executive director's position so that tasks may be given to those with ability to take them on. It also requires ongoing communication and coordination between the employees that are part of the co-management team.

If there are no employees able or willing to take on the task on an interim basis, a board member may be asked to temporarily assume these functions. Of course, the board member will have to resign from the board if he or she takes on a paid position with the organization.

Next Section: Orientation

Learning, Training & Development

Overview
The pace of change in the nonprofit sector has had an impact on workplace learning. Think of the current positions in your organization and the need for increased competence in change management, fundraising, diversity management and so on. The CPRN report, Skills and Training in the Non-profit Sector, explains that the need to constantly learn and develop new skills has never been greater: "Change also puts the spotlight on training and education as a means of equipping workers with the tools they need to adapt to changing skill requirements, organizational change and increasing complexity in the external environment." In this section of the HR Toolkit, you will find information about factors affecting learning and training, how to implement an employee development and training program, principles of adult education and a searchable directory of learning, training and development opportunities for people working in the sector. In this Section:

Factors Affecting Working & Learning Getting Your Organization Ready for Employee Training & Development Understanding the Employee as an Adult Learner Implementing an Employee Training & Development Program

Related HR Management Standard: What is this? Standard 5.1

Learning, Training & Development

Factors Affecting Working & Learning
Nonprofits and their employees operate in an environment that has seen many changes in recent years:

Competition for skilled employees Attracting and retaining employees becomes a challenge Need for additional skills Funding for employee training and development is a concern Less job security Limited opportunities for advancement

All these changes point to how vital it is to invest in the learning, training and development of your current employees.

Competition for skilled employees

There is greater competition for skilled employees and this competition will increase as the baby boomer generation starts to retire. In the CPRN research paper, Job Quality in Non-profit Organizations, it points out that the nonprofit sector employs a well-educated workforce with "strong project management and organizational skills." These same skills are sought after by other sectors of the labour market.

Attracting and retaining employees becomes a challenge

As competition for employees increases, attracting and retaining employees will become a challenge. To ensure that your organization remains a desirable place to work, as Job Quality in Non-profit Organizations points out, an important part of job quality is the opportunities that employers provide for learning: "The opportunity to develop and use one's skills and abilities is another important dimension of 'job quality', with relevant indicators including access to formal training , opportunities for onthe-job learning, and prospects for promotion and career advancement."

Need for additional skills

In another CPRN report, Skills and Training in the Non-profit Sector, the authors report that based on the information that they have, "... one would expect a considerable share of employees

to say that skill requirements have been on the rise. This is indeed the case." This is particularly true for professionals working in the nonprofit sector.

Funding for employee training and development is a concern

Adequate funding continues to be a concern. While the need to use resources to provide employee training and development increases, the resources to do so may not be available. In fact, funding for training and development may be one of the first items to be eliminated in times of financial uncertainty.

Less job security

Employees in the sector (and employees in general) have less job security than they used to. People constantly hear that they can expect to have many different employers and even different careers during their work life. Given this message and its reality, employees are looking for employers who will provide them with opportunities to develop transferable skills.

Limited opportunities for advancement

Most organizations in the sector have a flat organizational structure. This means that there is little room for promotion. Employees and organizations need to embrace the idea that moving 'up' is not the only way to be satisfied with one's work. An alternative is to create challenges for employees in their current position or a similar position.

Next Section: Getting Your Organization Ready for Employee Training and Development

Learning, Training & Development

Getting Your Organization Ready for Employee Training & Development
In this Section:

The need for employee training and development Benefits of training and development Creating a learning environment in your organization

Related HR Management Standard: Standard 5.2 During the development of the annual budget consideration is given to including appropriate resources to fund employee training and development.

What is this?

The need for training and development

Employee training and development are part of good management practices and good risk management strategies. The following issues and changes in an organization many indicate the need for employee training and development:

Employee's request Employee survey results Evaluation deficiencies Individual development plan Law and regulation changes Need to develop new leaders New employee New equipment New manager New program New technology Reassignment Safety issues

At the same time as the need for employee training and development is increasing, it can be argued that the time and money available in organizations for traditional forms of learning such as formal training courses has decreased. To meet this gap between the need for training and its accessibility, we've identified a variety of inexpensive methods for employee development that can offer longer leaves than the law requires. Or, your policy can stipulate that employees will be paid while they are on leave. By using these methods in a deliberate and thoughtful way, performance of your employees and your organization can be improved. Back to top

Benefits of employee training and development

In the CPRN report Job Quality in Non-profit Organizations, it is pointed out that development opportunities help to ensure that your organization is a desirable place to work. The report's forward states that employee training and development programs also have a positive impact on performance: "Job quality affects worker morale, job satisfaction, and the scope workers have to apply their skills and abilities to the job - all key contributors to productivity performance."

Employee training and development programs also help with employee retention. In the book Employee Training and Development (see Links and Resources below), Noe states that: "Studies of what factors influence employee retention suggest that working with good colleagues, challenging job assignments and opportunities for career growth and development are among the top reasons for staying with a company."

Employee training and development programs prepare staff to successfully carry out the mission of the organization. As stated by Zummach (see Links and Resources below), "... nonprofits that invest in their own organizations, particularly in the area of employee development and training , find that they are stronger and better equipped to carry out their mission."

Benefits of employee training and development include:

Employees are better prepared to help the organization achieve its goals Staff are more productive Employees are more motivated Well trained staff require less supervision A pool of employees are ready to replace others who leave Staff that engage in continuous learning are better able to meet the challenges of changes in the organization Staff are able to manage/work on new programs Your organization will be more successful at attracting and retaining employees

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Creating a learning environment in your organization

A positive environment for learning is always critical for success, whether it is the environment of a classroom or the environment of your organization. The learning environment provided by an organization is a function of the organizational culture. Organizational culture means the values, attitudes and beliefs reflected in the mission, goals, and practices of the organization. The Board of Directors and senior staff of your organization set the tone for the organization's culture. Do their decisions and actions view learning as a positive way to improve individual performance and the performance of the organization? Are these positive outlooks reflected in the value statements, policies and structures that guide the operation of the organization? Here are some ways organizations that value learning provide a supportive learning environment:

Recognize that learning is part of everything the organization does Opportunities to learn happen all the time. Organizational cultures that support learning recognize learning as an ongoing process, not an event. A new piece of legislation may be used as a learning tool for all staff. A proposed special event may become a learning opportunity for an employee who has expressed an interest in event management. Support the expectation of learning with resources for learning An organization shows that it values learning by including employee training and development in the annual budgeting process. Items included in the annual budget reflect the priorities of the organization. Encourage learning at all levels Opportunities to learn are made available for everyone in the organization from the Board of Directors to the most junior staff. Recognize that mistakes are learning opportunities One way an organization shows that it values learning is in its approach to mistakes. "Failure is critical to the learning process and must be considered in the context of the individual's role, potential, and future success. When we fail, we might react in one of three ways: learn from the mistake, continue to fail, become reluctant to try again. In today's workplace environment, leaders must develop a culture that removes the punishing effects of failure to help people to take risks, be creative, and to grow." Laurie Hillis (see Links and Resources below). It is important to encourage people to learn from mistakes rather than being afraid to admit their mistakes for fear of disciplinary action. Have a policy on employee training and development A policy on employee training and development shows that the organization values learning. Professional development policies usually include guidance on:

How often employees are expected to take formal training - once a year, once every two year, etc. The types of development programs that are acceptable When and how employees will be reimbursed for off-the-job programs

Provide time for learning

Time for learning in the workplace is important for the success of an employee development program. This means giving employees time to learn without the interruptions of every-day activity. Allow for practice of new skills on-the-job Learning does not end when the activity is over. Opportunities to use the knowledge and skills they have learned on-the-job will ensure that people retain what they have learned.

Hillis, Laurie. The Ten Commandments of Managing. Retrieved from Leadership Compass: Issue 7. Noe, Raymond. 2002. Employee Training and Development 2nd Edition. New York, New York: McGraw-Hill Irwin. Zummach, Nicole. 2002. "Strengthening Non-profits From Within" Retrieved from CharityVillage.com.

Next Section: Understanding the Employee as an Adult Learner

Learning, Training & Development

Understanding the Employee as an Adult Learner
When introducing learning strategies into the workplace, it is important to base these strategies on a good understanding of adult learning. Adult learning is a complex topic with many theories and approaches. This section will focus on some of the most widely recognized approaches and principles that are used in adult education.

In this Section:

Learning process - how new information is taken in and processed Learning style - the way adults prefer to learn Adult learning principles - the best practices in adult education

Learning process - how new information is taken in and processed

Kolb and Fry (see Links and Resources below) developed a way of looking at the adult learning process called the Experiential Learning Cycle. Learning is the acquisition of new knowledge, skills and attitudes. Learning is seen as happening in a cycle made up of four stages: concrete experience, reflective observation, abstract conceptualization and active experimentation. To put it simply, first the learner must experience something directly - concrete experience. Next the learner reflects on the experience, comparing it to what s/he already knows - reflective observation. The learner then thinks about his or her observations and develops some new ideas about how things work - abstract conceptualization. Finally, the learner acts on what has been observed and thought about - active experimentation. The active experimentation stage then becomes the basis of future learning. Complete learning happens when learner moves through all four stages and the new knowledge, skills, and/or attitudes become the basis for new behaviour.

Figure 1. Kolb and Fry's Learning Process

For your employee training and development program to be effective, each activity should take the learner through all stages of the learning process.

How to apply the learning cycle to a training and development activity

You decide that as part of your employee training program you are going to offer coaching on handling angry clients. How would the experiential learning cycle apply? Experience You could present some content on the steps in handling angry people, followed by a demonstration. Reflect The learners could be asked to discuss the information provided - what did they observe in the demonstration, how do the steps in handling an angry client compare to their current way of coping with such situations. Think The learners then might be asked to think about how they can use the information provided to improve the way they deal with angry clients. Apply Finally the learners would do a simulation to practice handling angry clients.

You want to teach an employee how to research and write a report - something she has never done before. What can the manager do to help the employee learn by going through the learning cycle? Experience Show the employee a copy of a report that is well written and organized. Have the employee read through the report. Reflect Discuss the merits of the report with the employee. Go over what makes it a good report and where it could be improved. Think Show the employee some other examples of report writing styles and guidelines to use in deciding upon the organization of her report. Apply Have the employee write a first draft of her report. Review the report and provide detailed feedback for the next draft.

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Learning style - the way adults prefer to learn

How do you go about learning something new? If you were given a new computer program to learn, would you read the manual first? Would you prefer to jump right in and explore the program on your computer? Or, would you prefer to watch a demonstration by an expert? The approach that you prefer when learning is called your learning style. Based on the experiential learning cycle, David Kolb (see Links and Resources below) developed a Learning Style Inventory that is frequently used to identify an individual's preferred way of learning. Kolb's inventory looks at how adults perceive and process information. Kolb identifies two ways in which learners take in new information. Some individuals prefer real life experiences and examples - concrete experiences. Others like new information to be given in the form of models or ideas - abstract conceptualization. Once the information is taken in some individuals will prefer to process that information by doing something with it - active experimentation. Others will prefer to observe what is going on and reflect on information reflective observation. In the Learning Style Inventory, Kolb combined these different ways of perceiving and processing information to help individuals understand the relative importance they place on the stages of the learning process. By becoming aware of individual preferences in learning, employee training and development programs can be designed to capitalize on these preferences and help the learner to become competent in all stages of the learning process. Another simple and often used way of looking at learning style is based on the learner's preference for visual, auditory or kinesthetic learning. The visual learner prefers colourful material filled with charts, diagrams and pictures to support the rest of the presentation. Auditory learners prefer to listen to presentations and explanations, and then talk through the concepts with others. A kinesthetic learner (sometimes referred to as tactile learner) prefers to learn new material by hands-on activity. They will learn best when in motion - doing, writing, drawing and walking around. Learning strategies that allow all your employees to learn using their preferred sensory mode will improve their learning.

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Adult learning principles - the best practices in adult education

Malcolm Knowles, a pioneer in the field of adult learning, was the first researcher to identify the characteristics of adults that impact on the way they learn. Knowles' work and that of many other researchers has led to a lengthy list of adult learning principles. Designing learning activity using

adult learning principles will help your employees make the most of the learning opportunity provided.

Links on adult learning and learning terminology www.volresource.org.uk - UK online resource centre for voluntary and community sector organizations provides information about Kolb and Fry's model of experiential learning. www.jobsetc.ca - Government of Canada site provides information, quizzes and links to other sites that help individuals understand how they learn best. Also provides tools for developing an individual learning plan. The module on Adult Learning Principles from the US National Cancer Institute's Trainers' Guide for Cancer Education is a good generic resource. Training and Learning Terminology - Treasury Board Secretariat of Canada

Books and articles referenced in this section Knowles, M. The Adult Learner 4th Edition. 1990, Houston: Gulf Publishing. Kolb, David A. Learning Style Inventory. 1976, Boston: McBer and Company. Kolb, David and Fry, R. "Towards an Applied Theory of Experiential Learning" in Cooper, C.L. (Ed). Theories of Group Processes. 1975, Wiley. p. 27 - 56

Next Section: Implementing an Employee Training and Development Program

Learning, Training & Development

Implementing an Employee Training & Development Program
In this Section:

Components of a successful employee learning experience The employee training and development process

Components of a successful employee learning experience

Based on adult learning principles, here is a checklist for a successful employee learning experience:

The goals of the employee training or development program are clear The employees are involved in determining the knowledge, skills and abilities to be learned The employees are participating in activities during the learning process The work experiences and knowledge that employees bring to each learning situation are used as a resource A practical and problem-centered approach based on real examples is used New material is connected to the employee's past learning and work experience The employees are given an opportunity to reinforce what they learn by practicing The learning environment is informal, safe and supportive The individual employee is shown respect The learning opportunity promotes positive self-esteem

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The employee training and development process

Learning happens all the time whether or not you are fully aware of it. Are you a person who forgets to save your work on your computer on a regular basis? If a power failure occurs and you loose some data, do you learn anything? If you say to yourself, "I must remember to save more often", you have done some learning. This type of learning is called incidental learning; you have learned without really thinking about it or meaning to. On the other hand, intentional learning happens when you engage in activities with an attitude of "what can I learn from this?" Employee development requires you to approach everyday activity with the intention of learning from what is going on around you.

Who is responsible for employee training and development?

Employee training is the responsibility of the organization. Employee development is a shared responsibility of management and the individual employee. The responsibility of management is to provide the right resources and an environment that supports the growth and development needs of the individual employee. For employee training and development to be successful, management should:

Provide a well-crafted job description - it is the foundation upon which employee training and development activities are built Provide training required by employees to meet the basic competencies for the job. This is usually the supervisor's responsibility Develop a good understanding of the knowledge, skills and abilities that the organization will need in the future. What are the long-term goals of the organization and what are the implications of these goals for employee development? Share this knowledge with staff Look for learning opportunities in every-day activity. Was there an incident with a client that everyone could learn from? Is there a new government report with implications for the organization? Explain the employee development process and encourage staff to develop individual development plans Support staff when they identify learning activities that make them an asset to your organization both now and in the future

For employee development to be a success, the individual employee should:

Look for learning opportunities in everyday activities Identify goals and activities for development and prepare an individual development plan

The individual development planning process

An individual development plan is prepared by the employee in partnership with his or her supervisor. The plan is based upon the needs of the employee, the position and the organization. A good individual development plan will be interesting, achievable, practical and realistic. It is implemented with the approval of the employee's supervisor.

Individual Development Plan Template (DOC 102KB)

Step 1 - Self-assessment The employee identifies his or her skills, abilities, values, strengths and weaknesses. To conduct a self-assessment:

Use the many self-assessment tools found on the internet Compare your knowledge, skills and abilities to those identified in your job description Review performance assessments (performance assessments are often used as the starting place for developing individual development plans) Ask for feedback from your supervisor

Self Assessment Guides: Alberta Government Leadership Development Toolkit - Assessing Your Strengths and Development Needs Contact Point - List of websites with self-assessment Tools

Step 2 - Assess your current position and your work environment The employee does an assessment of the requirement of his or her position at the present time and how the requirements of the position and/or organization may change. To conduct a position assessment:

Identify the job requirements and performance expectations of your current position Identify the knowledge, skills and abilities that will enhance your ability to perform your current job Identify and assess the impact on your position of changes taking place in the work environment such as changes in clients, programs, services and technology.

Based on your analysis in Steps 1 and 2, use the sample Individual Development Plan form to answer the following questions:

What goals do you want to achieve in your career? Which of these development goals are mutually beneficial to you and your organization?

Write what you would like to achieve as goals. Select two or three goals to work on at a time. Set a time frame for accomplishing your goals.

Step 3 - Identify development activities Identify the best ways to achieve your development goals.

What methods will you use? What resources will be required?

Step 4 - Put your plan in action Once you have prepared a draft of your individual development plan:

Review your plan with your supervisor for his or her input and approval Start working on your plan Evaluate your progress and make adjustments as necessary Celebrate your successes

Cost-effective methods for employee training and development

Employee training and development needs to suit your organization's context, job descriptions, employment contracts and collective agreements. When selecting employee training and development methods, it is important to remember the learning process. There are many ways to provide employees with learning opportunities, including: On-the-job experience Committees

Committees are part of every-day activity in any organization. They can also be effective learning tools, with the right focus Committees made up of staff from different areas of your organization will enhance learning by allowing members to see issues from different perspectives Set aside part of the committee's work time to discuss issues or trends that may impact on the organization in the future

Conferences and forums

Employees can attend conferences that focus on topics of relevance to their position and the organization Upon their return, have the employee make a presentation to other staff as a way of enhancing the individual's learning experience and as a way of enhancing the organization. (Some conferences and forums may be considered off-the-job learning)

Critical incident notes

Day-to-day activities are always a source of learning opportunities Select the best of these opportunities and write up critical incident notes for staff to learn from. Maybe a client complaint was handled effectively. Write a brief summary of the incident and identify the employee's actions that led to a successful resolution Share the notes with the employee involved and with others as appropriate. If the situation was not handled well, again write a brief description of the situation identifying areas for improvement Discuss the critical incident notes with the employee and identify the areas for the employee to improve upon and how you will assist the employee in doing this

Field trips

If your organization has staff at more than one site, provide employees with an opportunity to visit the other sites This helps your employees gain a better understanding of the full range of programs and clients that your organization serves Field trips to other organizations serving a similar clientele or with similar positions can also provide a valuable learning experience Give staff going on field trips a list of questions to answer or a list of things to look for Follow up the field trip by having staff explain what they have learned and how they can apply that learning to your organization. (Fieldtrips can also be an off-the-job activity)

Job aids

Tools can be given to employees to help them perform their jobs better. These tools include: manuals, checklists, phone lists, procedural guidelines, decision guidelines and so forth Job aids are very useful for new employees, employees taking on new responsibilities and for activities that happen infrequently

Job expanding

Once an employee has mastered the requirements of his or her job and is performing satisfactorily, s/he may want greater challenges. Consider assigning new additional duties to the employee Which duties to assign should be decided by the employee and her or his manager Organizations with flat organizational structure are starting to give some managerial tasks to experienced staff as a way of keeping those staff challenged

Job rotation

On a temporary basis, employees can be given the opportunity to work in a different area of the organization The employee keeps his or her existing job but fills in for or exchanges responsibilities with another employee

Job shadowing

If an employee wants to learn what someone else in your organization does, your employee can follow that person and observe him or her at work Usually the person doing the shadowing does not help with the work that is being done

Learning alerts

Newspaper articles, government announcements and reports can be used as learning alerts Prepare a brief covering page which could include a short summary and one or two key questions for your employees to consider. Then circulate the item Include the item on the agenda of your next staff meeting for a brief discussion

Peer-assisted learning

Two employees agree to help each other learn different tasks. Both employees should have an area of expertise that the co-worker can benefit from The employees take turns helping their co-worker master the knowledge or skill that they have to share

'Stretch' assignments

These assignments give the employee an opportunity to stretch past his or her current abilities. For example, a stretch assignment could require an employee to chair a meeting if the person has never done this before To ensure that chairing the meeting is a good learning experience, the manager should take time after the meeting to discuss with the employee what went well and what could have been improved

Special projects

Give an employee an opportunity to work on a project that is normally outside his or her job duties. For example, someone who has expressed an interest in events planning could be given the opportunity to work as part of a special events team

Relationships and feedback

Coaching

Coaching refers to a pre-arranged agreement between an experienced manager and his or her employee. The role of the coach is to demonstrate skills and to give the employee guidance, feedback, and reassurance while s/he practices the new skill

Mentoring

Mentoring is similar to coaching. Mentoring occurs when a senior, experienced manager provides guidance and advice to a junior employee The two people involved have usually developed a working relationship based on shared interest and values

Networking

Some professional specialties have informal networks designed to meet the professional development need of the members. Members meet to discuss current issues and to share information and resources

Performance appraisal

Performance appraisals are partly evaluation and partly developmental. In traditional performance appraisals the manager and employee evaluate the employee's strengths and weaknesses. In a 360-degree performance appraisal, feedback is gathered from supervisors, peers, staff, other colleagues and sometimes clients. The results of an appraisal can be used to identify areas for further development of the employee

Classroom training
Courses, seminars, workshops

These are formal training opportunities that can be offered to employees either internally or externally. A trainer, facilitator and/or subject matter expert can be brought into your organization to provide the training session or an employee can be sent to one of these learning opportunities during work time

Off-the-job learning Courses offered by colleges or universities

Many colleges and universities offer courses relevant to employees in the non-profit sector. Employees may attend these classes on their own time or your organization may give them time off with pay to attend. Employees are often compensated by the organization for the cost of the course

Professional associations

Professional associations, like networks, provide employees an opportunity to stay current in their chosen field

Reading groups (also called learning circles or reading circles)

A group of staff meets to discuss books or articles relevant to the workplace/organization. Meetings usually take place outside normal working hours, such as noon hour or right after work

Self study

Self-paced independent reading, e-learning courses and volunteer work all provide learning opportunities. The employee engages in

the learning activity by choice and at his or her desired pace of learning Information and course offered by the internet are called elearning. A variety of learning opportunities can be accessed this way. The choices range from formal training offered by colleges and universities, to an informal walk-through of a given subject, to reading reports on a topic. E-learning can take place on or off the job

Critical Incident Reporting Template (DOC 93KB) Reading Group Guidelines (DOC 109KB) Training Evaluation Form Template (DOC 89KB)

HR Planning
Succession Planning
What would you do in your organization if a key employee resigned, fell ill or had to be fired tomorrow? Would you be prepared?

In this Section:

Introduction What is succession planning? Why is succession planning important? Who is responsible for succession planning? What are some challenges to effective succession planning? Succession planning in small and mid-sized organizations Succession planning in larger organizations Tips for successful succession planning

Introduction
Succession planning is not an issue that many organizations address in any systematic way. Because many nonprofits are small (with fewer than 10 employees) and because they may be

facing other organizational challenges, thinking about who the next executive director might be or what would happen if the director of finance suddenly left is not high on their priority list. There are many reasons why organizations need to be thinking about succession planning. The most important reason, of course, is that we rely on staff to carry out our missions, provide services and meet our organization's goals. We need to think about what would happen to those services or our ability to fulfill our mission if a key staff member left. Another reason to focus on succession planning is the changing realities of workplaces. The impending retirement of the baby boomers is expected to have a major impact on workforce capacity. Teresa Howe in "Succession Planning and Management" identified other emerging realities about the workforce in Canada:

Vacancies in senior or key positions are occurring in numerous organizations simultaneously and demographics indicate there are statistically fewer people available to fill them Baby boomer retirements are on the rise just at the time when the economy is growing and increasing the demand for senior management expertise There is no emerging group of potential employees on the horizon as in past generations (i.e. baby boomers, women entering the workforce, large waves of immigration) Many organizations eliminated middle manager positions during restructuring in the 1980s and 90s and no longer have this group as a source to fill senior level vacancies Younger managers interested in moving up do not have the skills and experience required because they have not been adequately mentored. This is because middle managers, who would normally perform this type of coaching role, were eliminated

With careful planning and preparation, organizations can manage the changes that result from a generational transfer of leadership as well as the ongoing changes that occur regularly when key employees leave an organization. Although the type and extent of planning will be different, organizations both large and small need to have some sort of succession plan. Effective succession planning supports organizational stability and sustainability by ensuring there is an established process to meet staffing requirements. Boards and executive directors can demonstrate leadership by having the strategies and processes in place to ensure that these transitions occur smoothly, with little disruption to the organization. Related HR Management Standards: Standard 3.3 All employees have a work plan and performance objectives that identify the tasks/activities and expected

What is this?

results for future performance. Standard 6.2 Backup plans are documented to address any key employee leaves of absence. Standard 6.3 Critical positions in the organization are identified and succession plans are established.

La Relve: Succession in Quebecs Community Sector Commissioned by Quebecs Comit sectoriel de maind'uvre, conomie sociale et Action communautaire, and translated with the generous support of the Institute for Nonprofit Studies at Mount Royal College, La Relve is a combination discussion paper and workbook, aimed at raising awareness about succession and workforce demographics in the provinces community sector. While the majority of the statistics found in the document are specific to Quebec, the issues and concepts about succession have broad and universal applications for the sector in provinces and territories in the rest of Canada.

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What is succession planning?

While the term executive director is used throughout this discussion it is understood it is only one of many terms (such as president & CEO, senior manager and general manager) used by organizations in the sector to refer to their most senior staff person. The same is true of terms used for other positions so that an accountant in one organization may be a financial officer or CFO in another. The important consideration is not the title but the work-related responsibilities and their value within the organization.

A succession plan, simply put, is a component of good HR planning and management. Succession planning acknowledges that staff will not be with an organization indefinitely and it provides a plan and process for addressing the changes that will occur when they leave. Most succession planning focuses on the most senior manager - the executive director, however, all key positions should be included in the plan. Key positions can be defined as those positions that are crucial for the operations of your organization and, because of skill, seniority and/or experience, will be hard to replace. Whenever size and resources permit, a succession plan should involve nurturing and developing employees from within an organization. Employees who are perceived to have the skills, knowledge, qualities, experience and the desire can be groomed to move up to fill specific, key positions. Organizations should:

Assess their current and future needs based on either their strategic plan, goals and objectives, or priority programs and projects Match these to the capabilities of the existing workforce Develop a plan to manage the gaps that will arise when individuals in key positions leave or are promoted

The plan will generally include a combination of training and developing existing staff, and external recruitment.

To avoid a potential constructive dismissal or other claim, include a statement to specify that a succession plan is not a guarantee of a position; rather it represents a developmental plan to prepare an individual should opportunities arise within the organization.

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Why is succession planning important?

The benefits of good succession planning include:

A means of ensuring the organization is prepared with a plan to support service continuity when the executive director, senior managers or key people leave A continuing supply of qualified, motivated people (or a process to identify them), who are prepared to take over when current senior staff and other key employees leave the organization An alignment between your organization's vision and your human resources that demonstrates an understanding of the need to have appropriate staffing to achieve strategic plans A commitment to developing career paths for employees which will facilitate your organization's ability to recruit and retain top-performing employees and volunteers An external reputation as an employer that invests in its people and provides opportunities and support for advancement A message to your employees that they are valuable

The absence of a succession plan can undermine an organization's effectiveness and its sustainability. Without a succession planning process, an organization may not have a means of ensuring that the programs and services that are crucial to its operation are sustained beyond the tenure of the individual currently responsible for them.

A mid-sized arts organization lost an employee who had been hosting, organizing and managing a major fundraising event for a number of years. When he left, staff knew very little about how it was put together and there was no operations manual documenting the event. This very important event ended up being abandoned by the organization because they simply did not know how to run it.

A succession plan ensures that there are qualified and motivated employees (or a means of recruiting them) who are able to take over when the executive director or other key people leave an organization. It also demonstrates to stakeholders such as clients, funders, employees and volunteers that the organization is committed to and able to provide excellent programs and services at all times, including during times of transition.

A mid-sized organization relied heavily on the corporate memory, skills and experience of a longtime employee. In her final position, she was responsible for office administration including payroll, budget monitoring and the organization's major annual fundraising event. Over the course of her employment she held a variety of positions and had a very good understanding of the organization's operations and history. Her unexpected death was both an emotional blow and a wake up call to her colleagues. Everything she had known about the organization was "in her head." While discussions had occurred regularly concerning the need to document this information and to pass this knowledge on to others - this had never happened. The organization was able to regroup and survive the transition but the employees experienced high levels of stress as they struggled to determine what needed to happen when. A great deal of time and effort was spent recreating systems and processes and even then, some things fell through the cracks resulting in the need to rebuild relationships with supporters.

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Who is responsible for succession planning?

Both the board and the executive director have pivotal roles to play in succession planning. The board is responsible for succession planning for the executive director position. The board hires the executive director to ensure it has a skilled manager at the helm to implement the organization's mission and vision. It is therefore very important for boards to spend some time reflecting on what they would do if, or when, the executive director leaves. All too often, boards find that they are unprepared for such an occurrence and are left scrambling to quickly replace that person. There are many examples of an executive director leaving only to have the organization fall into disarray: funders withdraw resources, and other key staff members leave due to lack of effective leadership. Even when provided with adequate notice, boards sometimes find themselves in the position of having to scramble to find an interim solution. The executive director is responsible for ensuring a succession plan is in place for other key positions in the organization. These will likely be developed with help from the management team with input from implicated employees.

To ensure the process is fair and the succession plan considers different perspectives, ask for input from all key stakeholders.

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What are some challenges to effective succession planning?

Some challenges to succession planning are:

Size of the organization: some nonprofits have so few positions that they may not have the ability to offer opportunities for advancement; employees with the potential and the desire to advance their careers may move to larger organizations as a result Lack of financial resources: employees may leave for better salaries and benefits offered in other workplaces The nature of funding: as more and more organizations depend on project funding as opposed to core funding, there are fewer core staff members available to take up positions in the organizations Project staff come and go and may not be seen to be part of the talent pool available to organizations In some cases, senior leaders are staying on in their positions, despite the fact that the skills needed for the job may have changed or they are no longer making a meaningful and productive contribution to the organization Indiscriminate inclusion of employees in the succession plan including those who are disinterested, unmotivated or lack capacity to advance Inadequate training and development resulting in an employee who is not prepared for a promotion A plan that does not promote people in a timely fashion, leading potential successors to leave the organization to seek new opportunities Poor communication resulting in confusion and turmoil within the organization as staff speculate about what the succession plan really is Potential candidates for promotion cannot be guaranteed that they will be promoted; a lot depends on timing and need of the organization

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Succession planning in small and mid-sized organizations

In many smaller organizations, succession planning may be viewed as a luxury, but it isn't. At the very least, boards of directors have a responsibility to consider and plan for the departure of the executive director, who is often critical to the existence and sustainability of the organization. When faced with the loss or impending loss of an executive director, these kinds of questions quickly surface:

Should we hire from within or look for an external candidate? Do we have anyone internally who is qualified? Whether we hire internally or externally; does anyone really know the specifics of what that person was doing? What kind of impact will this change have on our capacity to deliver on our mandate and on our relationships with our clients, donors and volunteers? What do we tell our stakeholders?

Developing a succession plan for the executive director

In some instances, the board may decide that there needs to be a "second in command" who has the capacity to replace the executive director in the future. This means:

Identifying that person in collaboration with the executive director Ensuring that the person is motivated to take on the top job Developing a plan to ensure that the eventual successor gains the requisite skills and knowledge to take the job on Ensuring that the second in command is exposed to a broad range of experiences so that he or she has a wider understanding of the operations of the organization

The plan could include a formalized process of mentoring or coaching and training in more specific aspects of the job. When the size of the organization permits, it would be preferable to have more than one person identified as a potential successor to the executive director. In a small nonprofit, it may not be possible to groom a successor from within the ranks of existing staff. To ensure continuity and stability when an executive director leaves, employees may be paired to cross-train each other to ensure there are two people on staff who know each job.

The board chair should have a conversation with the executive director on an annual basis regarding his or her career aspirations. While the executive director is not required to share any career goals, the conversation can allow for a frank discussion about future plans.

Steps to put in place

First and foremost, the board is responsible for drawing up a plan of action and effectively communicating it to the rest of the staff as soon as possible. This is necessary to demonstrate that the board is taking decisive action, to deal with any misinformation that may be generated by a quick departure and to ensure that all of the employees' questions are answered. The board must also communicate its plan of action for replacing the executive director in a timely manner with its funders. Funders will need to be assured that plans and programs are on target and deliverables will not change. With no succession plan or second in command identified, the board may want to name an interim executive director until a replacement is selected. This choice should be made wisely because someone with the right skills and knowledge needs to be chosen. If a person is asked to take on the executive director responsibilities in addition to his or her job, there should be an adjustment in that employee's compensation to reflect the additional responsibilities and work load. Another option is to ask a qualified group of two or three employees to co-manage the organization by sharing the executive director responsibilities. In order for this approach to be effective, it requires a clear understanding of the various aspects of the executive director 's position so that tasks may be given to those with ability to take them on. It also requires ongoing communication and coordination between the employees that are part of the co-management team. If there are no employees able or willing to take on the task on an interim basis, a board member may be asked to temporarily assume these functions. Of course, the board member will have to resign from the board if he or she takes on a paid position with the organization.

HR Toolkit: Transitioning to a new executive director Learn more about things board members should consider when hiring a new executive director.

Ideas for recruiting for other key positions

The following ideas can be incorporated into your succession plan for key positions in the organization other than the executive director. Look to other organizations for exceptional employees New employees are often found in other nonprofits. While some may view this as poaching, the reality is that employees who aren't being challenged or aren't happy will leave the organization for a better opportunity. In some cases, employees have been known to leave for a position in another organization but return years later with new experiences and skills. Helping to keep exceptional employees in the sector by allowing them to move around to develop their careers should be seen not as a loss for individual organizations, but as a gain for the capacity of the sector. An innovative approach would be to develop a pool of candidates with other organizations and develop a rotational program to allow key employees to move from one organization to the next. This approach would ensure key individuals remain challenged and motivated while a group of nonprofits all benefit from the expertise. Look to your organization's volunteers There may be board members or volunteers in other positions within the organization with the talent, knowledge and experience who can effectively make the transition to a paid position. Look to project staff (either current or those who did project work for your organization in the past) As a result of a shift from core funding to project-based funding, there are more and more project staff who move from organization to organization with short contracts. These people will often have gained information about your organization's operations and could move seamlessly into a core staff position. Look to consultants (either those that have worked with your organization or other similar organizations) While most consultants may prefer to stay in their line of business, there are those who would like to become staff members, if asked. In some cases, consultants worked for a nonprofit before becoming a consultant and are interested in moving back into the sector to work.

Knowledge transfer is a key component of the succession plan. Ensure that core organizational processes are well documented. Whenever possible, ensure an overlap of time so the exiting employee can help orient and train the new employee.

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Succession planning in larger organizations

The steps outlined below provide a roadmap for larger organizations interested in developing succession plans. Different organizations will implement these activities differently. While there is no right or wrong way to develop a succession plan, the following provides important components that need to be considered.

Capacity and needs assessment

Step 1 Identify key positions for your organization. These include the executive director, senior management and other staff members who would, for their specialized skills or level of experience, be hard to replace. Ask yourself which positions would need to be filled almost immediately to ensure your organization continues to function effectively. Step 2 Review and list your current and emerging needs. This will involve examining your strategic and operational plans to clearly articulate priorities. Step 3 Prepare a chart that identifies the key positions and individuals in the organization. The positions might include those listed in step 1 and/or others that are pertinent to your organization, such as volunteers. Step 4 Identify and list the gaps by asking questions such as:

Which individuals are slated to or likely to leave (through retirement, project completion, etc.) and when? Which new positions will be required to support the strategic plan? Which positions have become or will become obsolete (for example, those related to a program that has been terminated)? What skills and knowledge will need to be developed (for example, to support a new program)?

Step 5 Evaluate/assess all staff members with the goal of identifying those who have the skills and knowledge or the potential along with the desire to be promoted to existing and new positions.

The evaluation can be formal or informal and can include, but is not limited to, performance reviews, 360 degree assessments and informal conversations with the individuals under consideration. The executive director may be aware that an employee has aspirations to and the capacity to move up. This may be an opportunity to recognize this goal and support it. Take this opportunity to give younger workers a chance. Many young people enthusiastically enter the sector and then, finding few opportunities for advancement, leave. Younger workers can remain engaged if you help to match their interests to opportunities provided through effective succession planning.

Develop and implement the plan

Based on the evaluation and on the requirements of your strategic plan, identify the key person or people you will want to develop and nurture for the future, the position you would like to groom them for, and the timeframe required to prepare them. Consider different ways of developing your employees like: self-development, books/journals, mentor programs, special project work. Identify the career paths that the selected individuals should be following. Customize the path to fit the individual's abilities and talents by developing an action plan. The plan must be dynamic able to be changed as the individual's and the organization's needs change. It must also consider the specific needs, learning styles and personalities of the individuals involved in order to be effective. Formalize education, training, coaching, mentoring and assessment activities. The mix of activities included within the action plan should be linked to timelines and specific outcomes. If possible, move people into different areas for experience and training before they are needed in critical positions. Have individuals job-shadow for an agreed upon period of time to give the successor a real sense of the responsibilities and to allow the organization the chance to determine whether the individual really is suited for the new position.

Monitor and manage the plan

As people leave and new people assume their responsibilities, the plan will have to be updated to identify the next person to be groomed for promotion and the requirements of his or her individual action plan. For organizations that engage in an annual (or regular) strategic planning process, the succession plan should be included in that discussion. Be prepared to address issues such as concerns of staff who have not been selected for career advancement. Ensure alternative paths are identified to allow all employees who are interested in career enhancement to be given some type of professional development opportunity. Professional

development can include such wide ranging activities as formal education and training, workshops and seminars as well as less formal learning opportunities such as the chance to represent the organization at a consultation. Recognize that no matter how well you plan, something can still happen which the succession plan doesn't address. For example, you may have dutifully trained a "second" only to have that person leave. Even though there may be no one able to fill the breach immediately, the succession plan will ensure that there is a process for you to follow in filling the position.

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Tips for successful succession planning

Secure senior management and board support for a succession planning process. This gives employees and staff an understanding of how important succession planning is to the organization. Review and update your succession plan regularly. This ensures you reassess your hiring needs and determine where the employees identified in the succession plan are in their development. Develop procedure manuals for essential tasks carried out by key positions. Include step-by-step guidelines. Adequate time should be provided to prepare successors. The earlier they are identified, the easier it is on the individual to be advanced and on other employees within your organization who will know whether certain options are available to them. Understand that your succession plan will be a unique reflection of your organization. Succession plans are as different from each other as the organizations for which they are developed.

Leadership Transitions - Checklist of Key Interventions (PDF 249KB) Guide to Setting up a Leadership Transition Committee (PDF 65KB) Transition Committee - Duties and Responsibilities Checklist (PDF 85KB)

Next Section: Risk Assessment in HR

Related sections in the HR Toolkit: Getting the Right People Learning, Training and Development

External links on succession planning: Coaching, mentoring and succession planning (PDF 362KB) Guide prepared by the Cultural Human Resources Council Transition Guides Website providing tools, ideas and services to strengthen organizations during leadership change. Their provides a sample succession planning policy which deals with the issue of executive leadership transition.

Books and articles referenced in this section: Axelrod, Nancy. Chief Executive Succession Planning. BoardSource. This book may be purchased through the BoardSource web site: www.boardsource.org Howe, Theresa. January 19, 2004. Succession planning and management. Charity Village Library. Available online at: www.charityvillage.com/cv/research/rhr12.html Nonprofit Quarterly. Leadership Transitions: Critical Thresholds. Winter 2002. Luhn Wolfe, Rebecca. 1996. Systematic Succession Planning: Building Leadership from Within (Crisp Fifty-Minute Series). Robinson, Maureen. 2004. Nothing Succeeds like Succession. Contributions Magazine, Chronicle of Philanthropy.

Next Section: Risk Assessment in HR

HR Planning
Risk Management in HR

The only sure way to avoid risk in nonprofits would be to lock the doors and put up a closed sign in the window. Risks are inevitable and organizations have a moral and legal obligation to attend to the safety and well-being of those they serve, those who work for them and others who come into contact with their operations. This is known as "Duty of Care." Organizations need to look at all the risks throughout their entire operation and incorporate risk management into all planning and decision-making. However, the specific focus of this section is risk management as it applies to HR activities. In this Section:

Applying risk management to HR The risk management process Who is involved in the risk management process?

Related HR Management Standards: Standard 3.3 All employees have a work plan and performance objectives that identify the tasks/activities and expected results for future performance. What is this? Standard 6.1 The organization has a process for regularly reviewing staffing needs.

Applying risk management to HR

When developing a risk management plan for your HR activities, there are a number of areas to focus on. This general list will get you started but it is very important that all organizations identify and evaluate the risks unique to their own organization. HR Activity Compensation and benefits

Potential Risk Financial abuse

Potential considerations Who has signing authority? How many signatures are required? Are there checks and balances? Was a complete screening completed on potential applicants? Were provincial human rights laws observed? Is there a set probationary period?

Hiring

Discriminatory practices Hiring unsuitable or unsafe candidates "Wrongful" hiring

Were promises made to the candidate that cannot be honored? Did the employee sign off on the policies and contract of employment before being hired? Do we provide safe working conditions and do we conduct safety checks regularly? Do we provide adequate training for staff? Do we ensure the use of appropriate clothing and safety equipment? Do we have adequate policies, procedures, and committee in place? Do we provide sufficient orientation and training? Do we provide adequate supervision (especially for activities that occur off-site or after hours)? Do we have a performance management system in place? Are personal information protection guidelines followed? Do we have clearly written position descriptions for all positions? Do we follow up when the parameters of the job description are not respected? Do we provide thorough orientation and training? Do we provide an employee handbook? Do we have comprehensive policies and procedures? Do we provide ongoing training about our policies and procedures? Do we retain written records of performance issues? Do we ensure that organizational valuables are secure? Do we have cash management procedures? Do we have adequate harassment

Occupational Health and Safety

Environmental Personal injury or death

Employee supervision

Abuse Reputation in the community Release of personal information

Employee conduct

Abuse Reputation in the community

policies and procedures? Exiting employee

Property Reputation in the community Compensation

Do we retrieve organizational information and equipment that a dismissed employee used (especially from home)? Do we ensure that all access codes, passwords, etc are de-activated? Do we conduct an exit interview? Do we record lieu time and vacation balances?

There is a connection between risk management and liability. Therefore, it is very important to obtain legal advice about your risk management plan.

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The risk management process

Risk management is a cycle. That means that it is not something that gets checked off a "to do" list but it is a continuous activity. Having a risk management process means that your organization knows and understands the risks to which you are exposed. It also means that your organization has deliberately evaluated the risks and has strategies in place to remove the risk altogether, reduce the likelihood of the risk happening or minimize harm in the event that something happens. At a very basic level, risk management focuses you on two fundamental questions: 1. What can go wrong? 2. What will we do to prevent the harm from occurring in the first place and in response to the harm or loss if it actually happens?

Identify the risks

The very first step is to identify the risks. Ask yourself what can go wrong. Every activity of an organization poses a risk so brainstorm and document the risks.

Consider both the general risks (that could happen to any organization) and the risks specific to your organization. Risks can be: o Abuse that is either one-time or ongoing (physical, emotional, psychosocial, sexual, financial) o Personal injury o Medical o Environmental o Property o Financial o Reputation/goodwill o Other

Involving staff, volunteers and board members in the risk identification process will give you a comprehensive picture of the risks based on different people's involvement in different areas of the organization. You may also wish to engage the services and opinions of an accountant or a lawyer.

Assess the risks

If you have done a thorough job of identifying risks, you may end up with a long (and overwhelming) list. The next step is to assess each of the risks based on the (1) likelihood or frequency of the risk occurring and (2) the severity of the consequences. Using a risk map to plot the likelihood of occurrence and the severity of the consequences will help you prioritize your next steps.

Blank Risk Map (PDF 25KB) Completed Sample Risk Map (PDF 21KB)

Develop strategies for managing risks

Consider the most appropriate risk management strategies for each identified risk:

Avoidance - Stop providing the service or doing the activity because it is too risky. Acceptance - Some risky activities are central to the mission of an organization and an organization will choose to accept the risks. Modification - Change the activity to reduce the likelihood of the risk occurring or reduce the severity of the consequences. Policies and procedures are an important part of this risk management strategy because they communicate expectations and define boundaries. Learn more about writing policies and procedures. Transfer or sharing - Purchase insurance or transfer the risk to another organization through signing a contractual agreement with other organizations to share the risk (for example, having a contractual agreement with a bus company to transport clients rather than staff driving clients).

Implement
When you have decided which risk management strategies will be the most effective and affordable for your organization, practically outline the steps and who is responsible for each step in the risk management plan. Communicate the plan and ensure that there is buy-in from all who are involved in the organization (staff, volunteers, clients, other relevant stakeholders). Provide training for all organizational staff and volunteers so they understand the rationale of the risk management plan as well as the expectations, procedures, forms, etc.

Monitor
Consider the following questions and document any changes to the plan:

Is your plan working? Have your risks changed? Have you expanded or reduced your programs and services? Are changes or updates required? Are staff and volunteers following the risk management plan? Do they need re-training on the details? Do we need to better communicate the plan?

Risk management is an evolving field. Therefore, it is a good practice to keep current and reevaluate your organization's risk management system on an annual basis.

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Who is involved in the risk management process?

Risk management is a large and important undertaking. There must be commitment from the board to commit the financial and human resources. In larger organizations, a risk management committee, team or department may be formed to handle the risk management process. In smaller and medium sized organization, the responsibility for developing and implementing a risk management process will likely fall on the executive director. However, paid staff, volunteers - and potentially clients and other stakeholders - will be very helpful partners in identifying risks and developing effective strategies to deal with the risks. Once the risk management process is in place, everyone in the organization has a role to play from identifying risks to following policies and procedures to completing forms and reports.

Big Brothers Big Sisters of Canada Risk Management Handbook Online risk management tutorial for non-profits Government of Canada fact sheet: The Application of the Personal Information Protection and Electronic Documents Act to Charitable and Non-Profit Organizations Association of Fundraising Professional's guide to PIPEDA Insurance Toolkit for the Voluntary Sector Insurance Bureau of Canada website

Next Section: The Board's Role in HR

HR Planning

The Board's Role in HR

As the governing body of a nonprofit, a board of directors provides oversight to ensure that the organization meets its mission and is operated effectively and in the best interests of the stakeholders: members, clients, funders, employees, and the community at large. The board has overall responsibility for strategic planning, finances, organizational operations, community relations and human resources. This section of the HR Toolkit focuses on the board's responsibilities for HR. In this Section:

Governance and board structure Governance and HR management Legal duties of directors Role and responsibilities for HR management Legislation related to employment and board responsibility for compliance Fulfilling your obligations as a board member

Governance and board structure

As the oversight body of a nonprofit organization, the board of directors is ultimately responsible for an organization's HR management activities. However, the level of involvement in HR management practices will depend in part on how long the organization has been in existence and the governance structure (model) used. In most established organizations, the board is charged with hiring and managing the performance of an executive director to which the responsibilities for operational HR management are typically delegated. The Institute On Governance identifies three distinct roles in an organization:

Governance - The interface with stakeholders, the source of strategic decisions that shape the organization and its work, and the ultimate accountability for the work and actions of the organization. Management - The link between governance and work. The organization of tasks, people, relationships and technology to get the job done. Work - Performing the tasks required to fulfill the mission.

Source: http://iog.ca/en/knowledge-areas/board-organizational-governance

Grassroots Governance: Governance and the Non-Profit Sector (PDF) Developed by the Certified General Accountants of Ontario, this free guide provides a great starting point for volunteers and board members who want information on good governance for their grassroots organization. The guide addresses the top issues facing volunteer boards of directors including the role of volunteers in good governance, ways to balance transparency and accountability, and how to guide the organization as it matures and grows.

Newly established organizations often have a working or administrative board where board members are directly involved in the day-to-day operations of the organization. These organizations often have no staff or they may hire a small number of staff to do work however the board volunteers take on the management role and some of the work as well. As organizations grow, the board will eventually hire a person (executive director, administrator or coordinator) to manage the day-to-day operations of the organization. Even with a manager in place, the board of directors is usually still involved in some aspects of management which is reflected in a mixed board structure. Mature organization usually develop a governance structure where the board of directors provides oversight on human resources management issues and only has direct involvement in the human resources management activities required to hire, supervise, and evaluate the executive director. Usually, one of two models of governance is adopted by mature organizations: Traditional Policy Board or a Policy Governance Board (Carver model).

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Governance and HR management

Working/administrative board
Board members are involved in all aspects of HR management.

Advantages Directors with expertise in HR management provide hands-on management of human resources

Disadvantages Consensus driven decision making can be time consuming and conflict ridden Heavily dependent on board members to volunteer for additional responsibilities Limited ability to respond quickly to

employment issues

Mixed board
Board is less involved in management but remains involved in the work of the organization.

Advantages Board committees can be established to work on areas such as HR management

Disadvantages Overlap in responsibility for HR management between the board and staff Potential for role ambiguity Tendency for the board to micro-manage operations May be hard for board members to give up management responsibilities

Traditional policy board

Board establishes the organization's mission and goals; board provides oversight of the HR management practices to achieve the mission and goals; executive director is accountable to the board for human resources management; The board through its executive committee or President is responsible for HR for hiring, supervising, and evaluating the executive director.

Advantages Committees made up of board members and senior staff may be established to develop HR policies and practices The roles and responsibilities of the board and executive director for HR management are clear

Disadvantages Quick changes in HR management practices are difficult to make if approvals are required at the committee level

Policy governance board (Carver)

Board develops policy to set the ends to be achieved by the organization, the means to achieve those ends and the limits on the executive director for HR management; board as a whole directs the executive director; the board needs to establish a thorough reporting structure so that it can fulfill its oversight function for HR management. Advantages Disadvantages

Responsibility for HR is delegated to the executive director within the limits set by the board Executive director develops and implements all HR policies and practices

Issues with the executive director may be hard to deal with in a timely way when the board as a whole has to be involved in the process The board is not involved in the development of policies and practices for HR management, yet as the legal employer, the board and individual members can be held legally accountable for breaches of law

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Legal duties of directors

Each board member has a fiduciary duty to the organization. This means that the board is acting on behalf of the membership or stakeholders in directing the affairs of the organization. The fiduciary duty of the board is the same for all types of governance structures. This fiduciary duty covers all areas of responsibility, including HR. In law, a duty is an obligation to act in a certain way and to a certain standard of care. Duty Duty of diligence Standard of Care Directors are required to:

Act reasonably, prudently and in good faith Educate themselves about the organization Make reasonable inquiries into the day-to-day management of the organization, consider explanations and to make informed decisions Diligent directors also seek the advice of qualified professional, when necessary

Duty of skill/competence

Directors with a special skill or knowledge have a duty to use that expertise in their role as a Board member, and to practice the standard of care expected of their professional abilities. For example, HR professionals and lawyers will be held to the standard of their professions on issues related to HR management and the law respectively. Board members without specialized skill or knowledge are expected to act as a prudent person would act. Prudent directors are cautious

Duty of loyalty

Duty of obedience

and careful. They try to foresee the consequences of a course of action before taking it. Directors have a duty to always place the interest of the organization first. This means acting honestly, in good faith and in the best interest of the organization. Directors must fully and promptly disclose any potential conflicts of interest and take action to avoid perceived or real conflicts of interest. Directors have a duty to act within the scope of the governing documents of the organization and to ensure that committees and staff do so as well. Governing documents include the organization's constitution, bylaws, policies, rules and regulations. This duty includes ensuring that governing documents are kept up-to-date. Directors also have a duty to obey all laws and statutes that apply to the organization.

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Role and responsibilities for HR management

In a mature organization, there are three participants in HR management: the board, executive director and line managers who directly supervise the work of other staff.

The level of autonomy of a line manager for HR activities will depend in part on the size of the organization. Also, in larger organizations which have a dedicated HR management position, some of the roles assigned to the ED and the line manager will be the responsibility of the HR manager.

An organization with good governance practices clearly establishes the division of authority and accountability among the board, executive director and line managers. The role of the board is governance and the role of the executive director is management. Sometimes the roles can get blurred. In clarifying whose job it is, the board and the executive director must always keep in mind the board's legal responsibilities and liabilities as the employer.

HR Responsibility Chart (PDF 155KB) Outlines who is responsible for different HR tasks

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Legislation related to employment and the responsibility of the board for compliance
Each board member is liable for ensuring that legislation is complied with. The executive director is hired by the board to manage the day-to-day operations of the organization. However, the board can not delegate its ultimate accountability for compliance with legislation. Most organizations are provincially regulated and therefore must comply with provincial legislation. Some organizations are regulated federally and therefore must comply with federal legislation. All organizations must comply with federal legislation in specific areas such as Income Tax, Employment Insurance, and the Canada Pension Plan.

Employment legislation changes regularly and it is incumbent upon the board to ensure that the organization has access to the HR expertise to keep current with these changes (either in-house or external HR expertise). Provincially regulated organizations receiving funding from the federal government to deliver a service may be subject to Employment Equity Legislation under the Federal Contractors Program depending on the amount of money received and the size of the organization. In addition to the federal and provincial legislation, municipal regulations can also influence the workplace. For example, bylaws on non-smoking in the workplace must be upheld.

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Fulfilling your obligations as a board member

How can directors of the board demonstrate good governance?

Fulfill your director's duties of diligence, skill/competence, loyalty, and obedience Know your legal responsibilities and liabilities Educate yourself about HR management Regularly attend board meetings Read all documents in advance of the board meeting Ask questions Take care when voting Register your dissent if you believe the board is acting improperly and ask to have your dissent recorded in the minutes Review the minutes of each meeting If you were not in attendance at a meeting where a decision was made that you disagree with, ask to have your dissent recorded in the minutes at the next meeting Establish sound organizational human resources management policies and practices On a regular basis, ask the executive director to report on the organization's compliance with all legislation Seek a legal opinion before important human resources management decisions are made Purchase director's and officer's liability insurance

Primer for Directors of Not-for-Profit Corporations (Rights, Duties and Practices) Government of Canada website Directors' Liability - A Discussion Paper (PDF 69KB) Volunteer Canada 20 Questions Directors of Not-for-Profit Organizations Should Ask about Human Resources (PDF 1.3MB) The Risk Oversight and Governance Board of the Canadian Institute of Chartered Accountants commissioned this briefing to assist not-for-profit boards in discharging their responsibility for the stewardship of the human resources of their organizations. This publication will assist directors of not-for-profit organizations with their key responsibilities: hiring, evaluating and planning for the succession of the executive director or chief staff person; setting the

compensation of the executive director and approving the compensation philosophy of the organization; and overseeing the human resources policies and practices of the organization as a whole.

Next Section: Compensation & Benefits