Human Resources Management: Contractual Staffing at a Library Consortium
Lisa Priebe
Need
• a nongovernmental organization to accept payment for services so that funds are not absorbed back into the general state budget at the end of the year
• a fiscal agent to be the official employer of record for State Library staff
• a second contract to provide office space for contracted employees and space for associated computer servers with proper security and high-speed Internet access
Benefit
• strengthen ties with partner organizations
• collect administrative fees for fiscal management and human resources services
• comply with legal requirements for library services
• share cost of office space, equipment, Internet
As a nonprofit 501(c)(3), The Colorado Library Consortium (CLiC) has the ability to collect and manage funds for outside organizations. (See Case Study 16, Consortial Fiscal Sponsorship for more information.) In addition to providing fiscal management services, CLiC is in a position to provide human resources support for outside organizations. The Colorado State Library approached CLiC with such a request after another library consortium that was providing these services closed their doors. The State Library could not create new positions within the state government infrastructure, and it preferred that these employees report through a contractual relationship with an outside organization such as CLiC.
Several key statewide services would be impacted without such an arrangement. These included:
• Colorado Historic Newspaper Collection, a pre-1923 digitized collection of local newspapers
• AskColorado: a 24/7 virtual reference service staffed by after-hours employees
• SWIFT: a statewide ILL requesting and tracking system
These services are maintained on a group of servers owned by the State Library. Four employees either support the hardware infrastructure or the project’s services, and the State Library needed to find an employer of record. In addition, the State Library was seeking a physical location to house the servers and the employee who maintains the equipment.
There were many human resources and business-related areas to consider before entering into such an arrangement. One major human resources management concern was how the benefit package compared to that of the previous consortium employer. After conducting a review and comparison, the benefits were found to be comparable. Another issue was hiring employees who would need part-time, temporary status. A large number of part-time employees are hired to work on an hourly basis to provide support for virtual reference through AskColorado. The State Library had internal reasons for not hiring employees with this status; however, as a nonprofit CLiC is able to hire using this employment status.
Under the agreement reached with the State Library, employees are managed by a State Library supervisor. Salary structure and pay increases are independent of those that other CLiC employees receive. Reviews and reprimands are handled using State Library processes and procedures.
Under this new contractual arrangement, CLiC grew from a staff of 9 to 35, which had a significant impact on human resources administration. A new payroll software system was adopted that streamlined payroll processing and allowed CLiC to take on the additional administrative work without needing to add support staff. CLiC standardized the orientation packet and sent information to new employees in advance. The employees who worked from home only needed to come to the CLiC office once to turn in the paperwork, review the employee handbook, and receive training on the payroll system. When an employee leaves, all termination tasks are completed by e-mail. All employee records are retained per state and federal laws.
One concern was that the addition of so many new employees would subject CLiC to additional employment laws for larger organizations. Research indicated that most federal and state employment laws become mandatory when an organization reaches 50 or more employees.
In addition to human resources, office space was also impacted by the decision to become a fiscal agent for the State Library. CLiC’s office space was not large enough to accommodate the addition of a new employee and a server room. A benefit of sharing locations was that some office services costs could also be shared. CLiC negotiated for a larger office space that included the construction of a secure server room. All costs associated with the construction of the server room were borne by the State Library. All other construction expenses were paid for by CLiC.
Under the service agreement, the State Library pays a suite rental, which covers the cost of rent for an office and the server room, phones, and utilities. Since the State Library requires a more robust Internet connection, it also bears the cost for Internet service. The consortium is able to connect to the Internet for its own use. CLiC is able to house its own server in the secure room at no cost and may utilize the on-site expertise of the networking specialist.
CLiC also assists with contractual relationships. Any contract the State Library wishes to enter into to support the three services is negotiated by the State Library. CLiC reviews contracts and is the named party and signatory. The consortium maintains all paperwork associated with State Library contracts and makes sure all contractual obligations are met. It also creates and monitors invoices at the direction of the State Library. The State Library directs CLiC when bills should be paid. A State Library manager works closely with our office manager to maintain accurate and complete accounts. Reports are available upon request.
Each project is managed through a Memorandum of Understanding (MOU). An MOU outlines the responsibilities and timeframes for action of each organization for the areas mentioned in this case study. It outlines how changes to the agreement may be made, expiration or termination dates, confidentiality, and dispute resolution. An MOU is used in lieu of a formal contract as long as both parties agree that a less formal structure is in the best interest of both organizations. A sample of a memorandum of understanding can be found at www.nonprofitmaine.org/blob_view.asp?blob=28.
CLiC collects administration fees for each of the State Library MOUs. Because some MOUs require more work than others, a different fee structure is used for each MOU. In some cases it is a percentage of what we bill for payroll, benefits, and rental costs. In other cases it is based on an average number of invoices that CLiC will be requested to create and the number of bills to be paid.
The Human Resources Contractual Staffing arrangement has been in place since July 2010. There have been only minor adjustments to the agreements, and through cooperation and coordination, the relationship is working well for both parties.