An Association is usually incorporated as a 501 (c) 6 organization. It works on behalf of its members. The strength of an Association is based on its membership. The larger the membership, the more success the Association will have in producing greater results. A nonprofit or individual should pay a membership to join an Association if there are clear and measurable benefits to being a member.

The most simple measure is, “Will my organization save money or obtain additional funds by the actions of the Association?” Group purchasing is the quickest and easiest way to see results immediately. These actions create more funds by decreasing costs.

Property insurance, health insurance, dental insurance, visioin insurance, utilities, billing services, retirement plans, human resource services, accounting services, consulting services, development services, office supplies, security, bottled water, food, equipment, web services, information technology services, banking services, audit services, construction, and employment assistance programs are just a few examples where group purchasing can decrease costs.

The other part of an Association’s effort is lobbying and clearly educating elected officials. A key role they play is providing a clear voice on the economic impact of their member organizations and the criticial areas of concerns.

So take advantage of Associations where it makes sense. Make sure you never pay more than it costs your local, state or federal government for a service or product.

The slight panic that Massachusetts businesses experienced recently in their attempt to comply with Health Care Reform should be seen as an opportunity to review employee benefits and improve employee retention.  As usual in a government mandate, there are lots of mixed messages and much waiting until the last moment to act.  It is time to use this year to make an effort to improve your organization’s ability to retain employees.  It only costs your organization more money and time each time there is turn over. 

An employee as an individual or in relation to their family situation compels them to be concerned whether their employee benefits are meeting their immediate needs.  The main areas are salary and health benefits.  Depending on situations and priorities, dental and vision may be included in their concern for health benefits.

However, I advise you to view all levels of benefits that support an employee and their family.  A distracted employee is an inefficient employee or an accident waiting to happen.  The rush to meet the benefit requirements should be turned to your advantage now.  Review what the employee needs and concerns are.  Develop your policies to at least show your organization has listened and is trying to help.

 Distractions to the Employee:

Is the employee spending more than 50% of their salary on housing?  For each percent above 33% an employee pays for housing the more likely the employee stress level will increase on whether the job is adequately covering their living expenses.

• How much is it costing me to get to work?
• How much a month is my student loan?
• How long does it take me to get to work?
• If I need a part time job to support my life style or support my family does my primary job interfere with it?
• What are the prospects of advancement at my current employer?
• Can I afford to get sick?  What happens if my child gets sick?
• Is the employee thinking “they’re not paying me enough”?

Depending on the housing costs of an employee, the pressure to earn a living wage gets harder each year. 

What has your organization done this year to address the housing or living wage problem for your employees?    Eventually all organizations will be effected by these two issues one way or another.