Not for profit organizations operate in a variety of business models. Smaller organizations may have only one employee, a few employees or even no employees! Regardless of the number of employees, an organization should have human resource processes in place to support the organization’s compliance with reporting and legal requirements, and to ensure that activities are consistently applied to all employees.
Some areas to consider:
- Human resource policies, approved by the Board, ensures that there are clear, documented processes in place. The extent of these policies would be determined by the nature and size of the organization. Documentation of processes ensures that the organization and employees have a common understanding of expectations.
- Strong hiring practices ensures that you choose the best candidate for a position. Focused interview questions, checking references and requesting a criminal record check (if necessary for the role) will inform your hiring decision. Using a probation period is helpful to determine if the person will be a long term fit for your organization.
- Evaluate performance on a regular basis (at least annually) to ensure the employee is meeting your expectations and that you are providing relevant feedback.
- Research applicable provincial legislation and Canada Revenue Agency requirements to ensure that your policies and procedures are fully in compliance.
Unfortunately, issues may arise that require formal intervention or perhaps termination of an employee. When these circumstances occur, obtaining legal and professional advice is prudent to ensure that actions taken are appropriate and that the organization’s interests are protected.
Other articles on Board Governance to read:
- How big should our board be?
- How often should we review our policies?
- How do I find board members?
- What does oversight mean?
- What does risk management mean?
- What are the top internal control tips for small organizations?
- Donations & Fundraising - what is your policy?
- Why is effective budgeting important?
- Is the CEO doing a good job?
- How much should a not for profit organization hold in net assets?
- Should we meet with our auditor?
- What is your role in fraud prevention?
- How do we recruit new board members?
- How do we engage our stakeholders?
- How do we set key performance indicators?
- What are best practices around volunteer management?