Human Resources Director (part 1 of 2)

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When a church hires an employee, it enters into the world of personnel management. Hiring, keeping, and firing staff requires a vast amount of labor law knowledge plus good management practices in order to provide a legal and healthy work environment.

At some point, a growing church will need to assign the personnel duties to someone. In smaller churches is typically the Personnel Committee while in larger churches it is given to a paid employee as part of their responsibilities. Only in very large churches is there an employee whose sole job is HR.

If you don’t have these assigned to someone, your church will have problems in this area. Be intentional and ensure someone is responsible for HR. Personnel problems are easily prevented but they can become very difficult (in time and money) when they become a grievance. Someone needs to be available to listen impartially to employees and help them work through professional difficulties. Too often it is presumed that the pastor will handle these matters but very few pastors are trained in personnel. Instead, rely on someone who is knowledge in this area of the law.

The next post will have a partial description of the HR responsibilities which should be assigned to someone in the church.

 

Lead On!

Steve

Considerations About Companies That Donate Profits

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There are an increasing number of companies that donate a portion of their profits to local charities. There are national companies (Target, Kroger, Amazon, Panera, etc.) and also local companies. This is a positive trend – these companies recognize that by donating locally, they can encourage loyalty by their shoppers to stay with them and buy even more. It is a marketing tool by the companies – plain and simple.

There are several things that the non-profits on the receiving end must be aware of and make an intentional decision.

  • The non-profit should consider the cost-benefit analysis: is the time & money spent in promoting this worth the money that will be received?
  • The non-profit is doing advertising for the company. Church members will only know about the “kick back” if the church tells them in bulletins, newsletters, and other communications to the members.
  • The non-profit is endorsing the company. If you don’t like what the company is about, then don’t associate yourself with them. You can remove yourself from their list of approved charities.
  • The non-profit may be favoring one company over another one (which doesn’t have this type of plan) and that might upset some church members. Members might raise this perceived favoritism in a business meeting or other venue.
  • The non-profit must know that in many cases, the benefits are relatively small. The charity should not expect this income to pay wages of any employee.

These are the main factors for a church and non-profit to consider when deciding whether to be linked with a company willing to donate some of their profits. Never enter into these agreements willy-nilly – think wisely and strategically about the relationships.

 

Lead On!

Steve

Balancing Committee Members

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Getting the right mix of people on decision-making committees is a science. It is NOT about getting people to agree to serve on a committee. Most churches have several key decision-making committees: finance, personnel, church council, and endowment. The people serving on these critical committees must be wise and patient among several other traits. Here is my list of things to consider when balancing a committee:

 

  • Age & gender
    • You must have a variety of ages and genders. Too much of one will make a committee lopsided in its thinking and unaware of other opportunities.
    • Committees should be almost evenly divided by gender.
    • The average age of a committee, from my experience, should be 45-55. That will mean you have as many people in their 20s & 30s as 60s & 70s giving the committee a nice balance.
  • Institution Memory & New Ideas
    • Committees must have a balance of people who are new to the committee while having others who remember how the church got started or did things a while ago.
    • We all get caught up in our ruts of how we see and do things, even young people. Having a mix allows people to see the perspectives of others.
  • Professional Training (lawyers, engineers, doctors, blue collar, accountants, military, stay home parents, etc.)
    • Every profession teaches its members to think and act differently. Leverage that training to gain the maximum benefit for the church.
    • Too many people from one industry will cause “group think” with little originality. Not including some “stay at home parents” may cause the committee to not remember some common sense items.

 

Be intentional about who is on your committee. Variety is the spice of life. A varied committee will mean more spice to your meetings but it will also mean a better result of their decisions.

 

Lead On!

Steve

Power and Influence

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What would you rather have: power or influence?

Let me define these:

  • Power is what Washington, DC has. It passes laws, makes policies, regulates society, and issues orders that control daily life in big and little ways.
  • Influence is what Hollywood has. It creates movies and TV shows which shape culture and change our perspective in overt and subtle ways.

Power is visible – the limos, the buildings, the suits, and other trappings which indicate this person has a great deal of authority. The President of the US is the most stereotypical sign of great power.

Influence is less visible – it is often wrapped up in a person or even just a concept. An artist (Picasso), actor (Marilyn Monroe), or author (Mark Twain) are common examples of influence.

Power is overt while influence can be understated. Power is a command; influence is a change in the way of thinking. Power is intimidating but influence is often welcomed. Power is immediate while influence can take time to take root.

If you had the chance to be a person of power or of influence, which would you choose?

I choose influence – its effects last longer and are received better by others. But that’s me – what about you?

 

Lead On!

Steve

Monthly Internal Audit Checks

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I encourage all my clients to have an annual audit. You can find reasonably priced audit firms who will also provide assistance throughout the year with tricky questions.

In addition, I encourage my clients to have an Internal Auditor, typically the church’s treasurer if they have a financial assistant doing the books (or the Finance Committee chairperson if the treasurer is doing the books).

The procedures the internal auditor does each month are quite simple:

  1. After the month ends, the internal auditor receives the general ledger detail for the checking account. That lists every payment and deposit.
  2. The internal auditor will review the list and select up to 10 deposits and/or withdrawals for which he would like to have more information.
  3. The Finance Assistant finds the source documents for the requested deposits or withdrawals and has them in a folder in the church office for the auditor to review. These documents should never leave the church; the auditor can review them onsite.
  4. The auditor make notes and, if necessary, talk with the staff person or supervisor if there is an expense or receipt for which he needs further clarification.

That’s it. It is very simple and it is done every month. Church staff will be informed that every one of their expenses is subject to a random inspection and that will ensure they attach appropriate documentation and in a timely way. It also provides a sense of lay member oversight so that the church can know that there is someone “guarding the guards.”

The monthly bank reconciliation summary should also be sent to the treasurer. This is done to provide more detail about checks and deposits that cleared or haven’t cleared.

 

Lead On!

Steve

Wills for New Parents

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My wife and I have had two babies. All that we thought about for months and even years was having enough diapers on hand and getting enough sleep. Seems like we constantly ran out of both. New parents are usually overwhelmed with all the needs and their desire to do everything correctly.

There is one thing that very few new parents ever think of: getting a new will. When you have a baby, your legal status changes because you are now guardians of another human. You have assets to distribute in the event of your death and you need to find someone to care for your child(ren) in the event both parents die before the kids turn 18. There’s a LOT to think about legally when you have a baby but this occurs to almost no one.

What if members of the church who are attorneys met with the couple and drafted a very simple will. I know that some wills can be done online but I can assure you that there is nothing like talking to a person to craft your will, especially for new parents. Having a “Wills Ministry” can provide an opportunity for church members to help (and get to know) other members of the church. If the couple has a more complicated legal status, the lawyer can help them negotiate that in a paid-for will.

Doing this for new parents tells the parents that the church is concerned about them and their new addition. It also communicates to attorneys that there are ways for them to be of professional service even in their own church.

 

Lead On!

Steve

Signs from God

Throughout my life I’ve asked God for signs: what job to take, what woman to date, where to go to school, what house to buy, etc. You probably have done the same. But as I read the Bible, I notice something interesting: almost every “sign from God” is different from the others.

God doesn’t like to repeat signs. God does original things; God is creative.

That’s hard on humans, though. When I ask God for a sign, I’m expecting to see something that I recognize is a sign from God (not from someone or something else). I’ll recognize the God-sign because I’ve seen it before. But that doesn’t work with a God who does original stuff all the time.

How do you know when a sign is from God?

Three ways: you talk with God (a lot!), you talk with others (a lot!), and you think about who you are (a lot!). If there is consensus between all three conversations (with God, others, & yourself), then you should probably do it. But if any one of the three tells you to pause, then stop.

Just remember this: God is all about creation and doing unique things. God made you different than everyone else that has ever existed. God will do things for you that God will never do for anyone else.

The next time you ask God for a sign, you may not recognize the sign. Instead, listen closely to God, your friends, and even your inner voice. Learn to recognize those voices – you’ll recognize them because you know and trust them. That is the best – and most unique to you – sign there is.

 

Lead On!

Steve

Budget Categories

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Church budgets have only three categories: buildings, staffing, and programming. The following analogy is not exact (no analogy is) but is useful for illustrative purposes.

  • Buildings are the skeleton of a church
    • Facilities and grounds contain many, but not all, the activities of the church. This is the place where society expects to find members. This is the place that is considered by everyone to be a safe place, a sanctuary from the world.
  • Staffing is the heart and brains of a church
    • Personnel are what decide the vision and leadership of the church. The staff guide the volunteers to do more, worship better, reach out to others, learn deeper, and care more thoroughly for others.
  • Programming is blood and muscle of a church
    • The activities of the church provide the energy and excitement; they demonstrate to the world what the church is all about. The programs, mission trips, worship services, educational activities, outreach efforts are the tools the church uses to attract and retain others.

Too often I’ve seen churches decide to reduce one of the three (typically, programming) without understanding the full consequences of their actions. Reducing programming can leave the church paralyzed. Not having a building can cause the church to lose its relationship with the community because it can meet elsewhere anytime it chooses. And not having staff (or having little staff) could mean having nice facilities & volunteers but they are aimless.

Think about the synergy of all three. They are a tripod which support each other and the purpose of the church. But if one of these is weaker or stronger than the others, the church can get lopsided.

 

Lead On!

Steve