ggopher posted on January 27, 2010 00:18
Imagine this scenario: a local nonprofit hired an Executive Director. Unfortunately, the Board took several months to make a hiring decision and the best candidates accepted other positions. The chosen applicant did not have relevant applicable experience, but was a well-liked member of the community. Over the next months, the newly hired Executive Director proceeded to fire or force out several employees. Morale at the organization plummeted, complaints were made to the labor board, and board members were notified of alleged wrongful terminations, potential lawsuits in the making, misuse of organization funds and lack of transparency. Open board meetings were covered by the local newspaper due to the ever-growing number of questions from the community about these activities.
As this organization was in a somewhat rural area, job opportunities were not abundant. Many of the terminated employees were not able to find employment. Some even lost their homes to foreclosure due to the loss of income and inability to sell their home in a depressed market. The impact on several families was devastating.
Eventually, the Executive Director was terminated. But the damage was done. Should Board members ever apologize to terminated employees, remaining staff, or the community? Or does that action invite lawsuits as the apology may be seen as an admission of mismanagement or lack of oversight? Should the Board point to the “at-will” employment clause in the employee handbook to absolve them of responsibility?
What is the “right” thing to do when something like this occurs in a nonprofit organization?