Museum CEO – Lowest Full-time Staff Salaries: Is the Ratio a Question of Numbers or Ethics?

bigstock-wealth-85345043Leadership Matters writes a lot about salaries, and this week a question on Facebook deserves a closer look. Our colleague, Franklin Vagnone, President and CEO of Old Salem Museum and Gardens in Winston Salem, NC, asked a group of museum colleagues if they knew anything about the ratio between nonprofit CEO pay and staff salaries. Because it’s Facebook, Frank got a lot of comments, but no definitive answers.

Considering that salaries in general, and CEO salaries in particular, are not the stuff of social media conversations, Frank’s question was about as transparent as it comes. In short, he wanted to know what the ratio is between a CEO’s salary and the lowest paid staff member. The numbers for the corporate world are available courtesy of Bloomberg, and range from a frightening 1,205 to 1 to a more modest, yet still dynamic, 133 to 1. But Google the same question for nonprofits and you discover a hot mess. Not to mention, again, no real answers.  You’ll find the average ED pay for a US nonprofit hovers between $64,999 to 88,000, but nothing about the salary relationship between leader and staff.

Among the 300 million hits from Google, none of the first three pages offered any answers. There are cautionary articles about making sure nonprofits meet their state’s minimum wage laws, and/or using living wage calculators to set salaries. There are also articles about nonprofit CEO pay and how much might be too much. But neither I nor Vagnone could find anything about adjusting a leader’s salary to make the ratio more equitable.

At Old Salem Museum and Gardens Vagnone and his board have spent the last two years in an equity initiative, making sure all staff receive a living wage as determined for Forsyth County, NC. It’s important to note that a living wage in Forsyth County, North Carolina is NOT a living wage in New York City or San Francisco or Allegany County, Maryland. Living wages reflect, among other things, cost of living, thus locations with high rent, taxes, food costs, and transportation by necessity have a higher living wage than places where the cost of living is lower.

“My goal is not to put my thumb on other people, and keep their pay low. It’s the opposite,” Vagnone said. “Nonprofits are collaborative entities, and we all should be able to be equitably compensated based on experience and skill.” Vagnone and his board use various comparables such as the AAM National Museum Salary Survey along with salary information from similar North Carolina sites, but these don’t confront the issue of CEO pay versus the lowest FT employee ratio. “Nonprofit boards are usually populated with corporate executives,” Vagnone said. “They come to nonprofit pay from the for-profit perspective. In some cases, boards are not always in tune with organizations they manage,” Vagnone added.

After talking through the problem, here is a mash-up of Vagnone’s and my take-aways:

  1. Someone needs to do some research on this for the museum world and make it available.
  2. Solving this isn’t an entirely numeric issue. It’s also an ethical issue.
  3. Boards and CEO’s need to make sure they’ve dealt with the living wage/equitable wage problem for all staff.
  4. CEO’s/ED’s salaries need to have an ethical and reasonable relationship to staff’s. Those numbers will differ based on a huge number of variables including museum location, operating budget, availability and size of endowment(s), number of staff, and museum discipline, but boards and leaders should be intentional about the ratio.
  5. It’s important that boards and executive directors work staff salaries in an ethical direction.

Has your organization tackled this problem? If so, what was the result?

Joan Baldwin

 

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Museum Hiring: It’s About the Whole, Not for the Other-than

People talking, thinking concept.This week in discussion with our Johns Hopkins class we asked students about threats to 21st-century museums. While there were outliers who mentioned the lack of leadership training, poor pay, and becoming a pink collar field, the vast majority felt diversity was today’s biggest challenge. And by diversity, they meant its absence. This group is young, hopeful, largely female, and mostly Caucasian, yet they see our field as riddled with white, male patriarchy.

To be totally transparent, we here at Leadership Matters are older, white, straight and female. We occupy a weird nether-world that has trouble claiming a demographic silo so there may be some who bristle when we write about diversity and leadership. But as people who’ve watched the museum world, and particularly museum leadership, for a long time, we believe this field is overdue for change. And creating diversity by checking boxes–one handicapped staff member plus one LGBTQ person, plus one person of color, plus one transgender individual equals diversity–is not the answer. In fact, it can result in a lonely group of individuals who are burdened with representing an entire population, and who  feel they’ve only been hired because of who they’re not. And who aren’t they? They aren’t your usual Caucasian, privileged, cisgender, straight, liberal-arts college crowd. So what should you do?  How about hiring for the whole not for other-than? 

How do you do that? Know your community. That’s your actual community, meaning your museum neighborhood, not the people who come to openings. Know your staff. Know where you want your organization to go, and who your museum cares about. Hire to mirror your forward motion. Hire to create a team, not to check boxes, but make sure you’ve done due diligence in spreading the word. Don’t place one advertisement with your regional museum service program and call it a day. Put the ad in as many places as you can afford and see who you attract.

Be willing to invest some time in the process. Hiring new staff is far more complex  than ordering from Amazon, and yet too many organizations treat it in much the same way. They don’t discuss what the new or revised position could or should look like, how it might fit into the organization, and most importantly how one particular position adds to or complements a team. Add to that a boatload of bias, and it’s easy to hire the same old, same old.

When we wrote “Know your staff” above, we really meant it. Even if you work at an organization as big as some small towns, someone knows the group of people you are hiring for. They know whether they interact with the community daily or move entirely behind the scenes. They know whether they’re chummy, go out for drinks together, and finish everything on time but at the last minute or whether they are goal driven and competitive. And they know whether their team really needs a master’s degree or whether a bachelor’s degree and a lot of imagination will move the ball up the field just fine.

If you’re the board and hiring for the ED position, you know what’s on the “to-do” list at the micro and macro level. If you’re making a huge shift, you know you’re going to need someone who will smile and be personable, someone who can sell change. That means you must park your bias at the door. Listen and watch. Again, don’t choose the person who makes you comfortable; choose the person that’s the best fit for the job.

I would be doing us all a disservice if I made it sound as simple as applying good listening techniques. Hiring is a complicated process, where bias, aspiration, hope, and memory frequently clash. AAM offers good resources on how to make the process more open and transparent. Don’t forget too, part of hiring and keeping a diverse staff is to maintain an equitable workplace. Maybe now’s the moment to make sure your 2019 to-do list includes:

  • a gender pay equity audit.
  • a values statement–what does your organization believe in back stage away from the public?
  • an HR/personnel policy that includes a standard of conduct and anti-harassment and anti-discrimination policies.
  • An understanding of what it costs to live in your museum’s neighborhood, city or town.
  • Know what diversity means in your community. Know who’s not at your table.

Once again, hiring for social media/PR value only nets disappointment and expense. Instead, hire because you want a diverse crowd around your table. Because the diverse crowd is the best crowd and diverse teams are imaginative teams. And who isn’t looking for the dream team?

Joan Baldwin

Image: Harvard Gazette, Harvard University


Make Your Next Museum Leadership Hire a Group Effort

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Choosing a new executive director is a big deal. Whether you’re a teeny tiny historical society or the Metropolitan Museum of Art much rests on the selection of a single human. This week, both in conversations with a colleague, and in class discussion with our Johns Hopkins University students, it became clear that a lot of museums and heritage organizations don’t allow staff to meet the candidates. Too often, that opportunity seems to belong to the board and the board alone.

It’s hard, however, to see how that makes any sense. Admittedly, I work at an organization that’s taken the interview process to extraordinary levels. Except for the lowliest positions, every candidate spends at least five or six hours on site, moving from meeting to meeting, and often participating in the proverbial lunch where she or he is asked to eat while simultaneously answering questions from well-meaning staff. At day’s end, everyone submits evaluations to their direct reports. Could staff really sway a decision? I don’t know, but I can tell you that everyone feels as though they’ve participated. At the very least, they can put a name to a face when the final decision is announced. Why does any of this matter? Because “they,” whether they are a leadership team at a huge organization, or the entire staff at a small one, will be the candidate’s team. And the team is important.

One of the many misconceptions about interviewing is that it’s something that happens to you. And it does, but it’s not an entirely passive experience, nor should it be. Too often the whole job process feels like a do-or-die proposition. You turn on the charm and hope they pick you out of what must be — in your imagination at least — hundreds of capable applicants. But you’re also interviewing them, whoever they are. And how they come off, especially at a moment when everybody’s on their best behavior, matters. What does it tell you if you spend half a day on site, and never meet the staff? Granted, if you’re interviewing at the American Museum of Natural History, The Henry Ford or the Victoria and Albert Museum, you couldn’t possibly meet many staff. But, at the very least, shouldn’t you meet your future peers and/or direct reports? And what does it say about the board and the leadership if you don’t? At the very least, ask for those opportunities if it appears they aren’t on the agenda. (You never know, the staff could have fruitlessly pushed for meetings. If you ask for and get meetings, you could become the staff’s hero.)

Sometimes organizations can’t seem to get out of their own way. And boards, like an abandoned spouse after a divorce, sometimes hire quickly, frequently selecting a version of the person they just lost, perpetuating a host of organizational ills. So, if you’re a museum board member or a museum leader, and 2019 is going to be your year for an important hire, think about the following:

  • Know what qualities you’re looking for. Sounds obvious, but these aren’t the standard qualities that every job advertisement lists — courage, vision, intelligence, self-awareness — they are the qualities that will take your museum or heritage organization and move it forward. And they shouldn’t be confused with qualifications. Only you, the board and the museum leadership know what your organization needs. Is it experience as a collaborator with other organizations? Is it the ability to be decisive and carry out a strategic plan? Is it an understanding of how digital and web-based content can impact your organization?
  • Be open about where you might find this person. It might not be in a traditional spot. Try to shed your biases or at least acknowledge them, and be willing to look outside the box.
  • If this is the top spot, decide how to engage your leadership team and/or staff. Who will give candidates a tour? Who will meet with them in small groups? Who will answer questions about living in your area?
  • How can meetings with staff and candidates give you the most bang for the buck, providing information for the interviewee, while also giving staff the opportunity to listen and ask questions?
  • Does your staff or board need coaching on which questions are legal and appropriate and which are not? A refresher never hurts.

Hiring, particularly for the top spot, is a time-consuming and sometimes expensive process. Presumably, you’re proud of your museum and the work it does. So showcase it. Let candidates meet with staff. Give them a mechanism to report back. Listen. Listen. Listen. Choose wisely. Choose for the team you have and the organization you want.

Joan Baldwin


The Board’s Imprint on Organization Values, continued….

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While Leadership Matters is thankful for its loyal readership, our readers rarely — unless we’re writing about poor pay — comment much. Surprisingly, last week’s post on board culture generated some meaty discussion both here and on AAM’s Open Forum. Comments ranged from T.H. Gray’s definition of a Board of Trustees: “Museum amateurs charged with leading museum professionals,” to Steven Miller’s response on the Open Forum. The crux of much of the discussion was whether and how museum boards influence workplace culture.

Several of you, including Conor Hepp and Steven Miller, suggested that it is staff leadership who create organizational culture which the board monitors. Miller too pointed out that museum boards are distanced from organizational daily life, and their lack of training causes problems. He wrote: “I agree with Conor’s points that trustees are usually removed from a museum’s daily internal life. There are exceptions, of course, and they usually play out in small museums or with trustee committees that are close to certain museum offices, departments or operations. There can be many cultures within a museum, some known to trustees some not known.” Leadership Matters‘ Anne Ackerson also responded to Hepp, pointing out that “the leadership team is responsible for nurturing (or stunting) the day-to-day institutional culture. Don’t forget, though, that the board also has a culture that permeates staff leadership ranks.”

So which is it, chicken or egg? Do boards create and influence workplace culture or is that the responsibility of the leadership team? We agree there are likely many cultures at work in any organization, and the bigger the museum, the more likely that multiple cultures will flourish. That said, what’s the board’s role? And what about Anne’s idea that board behavior sets an example (and a culture) for the entire organization? If a board relegates women to event planning or overseeing the volunteer program, doesn’t that set an example for the organization’s attitude toward women? If the ED came to a board like that with questions about salary equity or the gender pay gap would the board step out of character and work for change?

Except in the tiniest organizations, boards cannot and should not be involved in micromanaging the workplace. But in the case of these big-ticket issues involving institutional values, we agree with Anne: The board sets a tone. In a perfect world, the board is both a microcosm and a mirror. It reflects the community it serves by making sure everyone is at the table, and, once seated, that everyone has a voice. In addition, it understands that its behavior — inclusive, empathetic, and creative — is a model for the museum itself. Last, it knows that a value-driven board attracts and retains museum leadership with similar qualities.

To circle back to last week’s post, if Wall Street is a bellwether for anything, executive behavior —  both on and off the board — is important. For Wall Street good behavior, setting values and acting on them suddenly seems to have monetary value, which is not nothing when mergers and acquisitions count in millions of dollars. How long will it be before a nonprofit board is taken to task or taken to court for its knowledge and complicity in sexual misconduct, racist or xenophobic behavior? In the Lake Wobegon of nonprofits, where all museums are above average, we’d like to think boards behave well just because it matters and that’s their job. But in a world where victims can share their  stories in a heartbeat, everyone needs to check their biases and, most importantly, be empathetic. Here at Leadership Matters, we believe that begins with the board.

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We’d like to end this week’s post with a hearty congratulations to Local 2110 UAW, a chapter of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), organizing for union rights across New York City. After 122 days it reached an agreement on behalf of union members at the Museum of Modern Art (MoMA). As reported by Hyperallergic, the agreement means all employees will receive raises of 3% or $1,600, depending on which amount is greater, with the lowest-paid 25% of workers receiving 4% greater additional income or higher. MoMA staff will retain their single coverage health benefits without employee contributions, and employees utilizing family coverage will not see an increase in their contributions as a result of their new raises. To learn more about Local 2110, click here.

Joan Baldwin

 


Museums and Leadership: The Story Continues

British Museum Visitors

We began writing this blog in 2013. We’d just sent Leadership Matters off to the publisher and wanted a way to keep the discussion going. The book is a collection of 36 interviews with museum and heritage organization leaders, speaking frankly about the thrills and challenges of doing their jobs. Not all were directors since we believe  leadership happens throughout an organization.

Now, five years later, we’re revising the original. Five years doesn’t seem that long, but the first interviews took place early in 2012, and a number of our interviewees have retired, changed jobs or left the field. So, we’ve begun to write and interview again, and, if all goes well, the revision will be available in fall 2019. But most importantly we are thinking deeply about how (and why) museum leadership today is different.

In some ways the museum world is the trailing indicator, slow to change and late to the party, perhaps not so much at the front of the house, but in staff rooms, offices and around the coffee machine. Six years ago we approached this project with real concern about the field’s understanding of leadership, and the need for boards to grapple with it. Today, leadership as a concept, seems more universally accepted for individuals and organizations who want to move the needle from mediocre to extraordinary. However, toward the book’s end, there’s a chapter called “There Be Dragons Here.” There we ask how 21st-century museums and heritage organizations navigate their communities while remaining truly and authentically themselves. To be honest, this is a place where there are still dragons. Too many organizations find themselves landlocked, unable to intersect with the communities they serve because of lackluster leadership.

Over the next six months we will try to pinpoint change. So, in the tradition of our book and our blog, here’s a preliminary list of places where leadership intersects with the lives of individuals, directors, organizations and boards.

For individuals:

  • The job market remains highly competitive and graduate school is still the admission ticket.
  • This is still a field where too often one is asked to work for no money in the form of volunteering or internships before actually making too little money.
  • This is a field that too often fails to train for leadership, but asks for independent, creative forward-thinking employees.
  • This is still a field where race, class and gender are barriers: Race because too often young POC are hired for the wrong reasons and asked to represent a race/culture rather than being treated with equity; class because poor salaries continue to make it easier for wealthy individuals to enter the field; and gender, because for women, particularly women of color and most especially trans women, even the most casual Facebook survey points to a boatload of bias.

For leaders:

  • The back of the house is as important as the front of the house. Museum workers who have a long tradition of not retaliating when mistreated have started to react individually and collectively.
  • Museum workers and museum audiences expect (and want) organizations to be values driven. Sorting out what that means for a given museum or heritage organization is one of the tasks for today’s leader.
  • Leading an organization means engagement not just presentation.
  • Leaders need to understand how and where personal and organizational leadership intersect and mirror one another. A self-aware leader means a self-aware organization.
  • 21st-century museum leaders need the courage to tackle the hard stuff.

For organizations:

  • Organizations need an HR department or its equivalent and an understanding of employment law.
  • Organizations need an active, current personnel policy that addresses all human and family needs.
  • Organizations need to engage not just present; they need to be real community partners.
  • They need courage to tackle the hard stuff.

For Boards of Trustees:

  • They need to understand the meaning of service.
  • They need to understand the museum world, its ethics and values, its standards and expectations.
  • They should want a values-driven organization keenly, if not more so, than their staff leaders.
  • They should know the value of human capital and what it takes to advocate for, support, and celebrate a creative, engaged staff.
  • They should understand their communities, whether local, regional, national or international.

Tell us how you think leadership has changed or is changing.

Joan Baldwin

Image: Museum Insider

 


Taking the Museum Gender Equity Pulse in Texas

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Texas may not have originated the phrase “Go big or go home,” but it could have. It’s a big place, bigger than France. Last week Leadership Matters traveled to Houston for the Texas Association of Museums (TAM) annual meeting where we keynoted day two for 550 museum folk from all corners of the state.

None of that is particularly unusual. Both of us speak fairly frequently on either leadership or gender or both. What was odd (and gratifying) was that out of the approximately 65 state, regional or national museum service organizations, it is TAM who chose to make gender equity the focus of its 2018 meeting.

Here on the East Coast, mention Texas and you may get some eye rolling. Folks will tell you that Austin has great music or food, but then conversation may turn to the fact that it’s a place you’re allowed to carry your holstered handgun out in public. Then there’s the weather (hot), and the fact that it might not have any trees. And maybe in the minds of the Metropolitan Museum-going public, it might not have any museums. But it does. Big ones, uber-wealthy ones, tiny historic sites, and major history museums, all nurtured and supported by TAM. And it is the TAM board and staff who chose this year–the year of Post-Weinstein, #MeToo, and #TimesUp– to make gender equity the centerpiece of its meeting.  (In 2017 TAM also launched a Diversity, Equity and Inclusion series headlined by Chris Taylor from the Minnesota Historical Society so this isn’t its first foray into challenging workplace issues.)

How bold was this gender equity focus? Pretty bold. Bigger organizations might shy away. Gender equity–despite its relentless focus on closing the pay gap, a gap that according to the American Association of University Women (AAUW) is dramatically worse for Native and Latina women than for black women, and certainly for Asian or white women–has been the after-thought problem in the museum world for 45 years. And this in a year when data shows us that nationally 81-percent of women and 43-percent of men experience sexual harassment in their lifetimes. Some might say that the museum world, with its 46.7-percent female workforce, should sit up and pay attention. That’s how TAM felt, and that’s how we found ourselves speaking to a lunch-time audience in the Hyatt Regency.

Before we went, we launched a survey on Facebook to confirm (or bust) what we believed about gender equity in museums versus working in other job sectors in the United States. As of Sunday 625 humans had taken part. The survey is still open if you’d like to participate. What did we learn? That 62-percent of those folks say they’ve been discriminated against because of their gender. And more alarmingly, that 49-percent have experienced verbal and/or sexual harassment at work. What does this say about the museum field? Haven’t you all had enough? Texas is taking care of its own, but isn’t it time for more museum service agencies to follow the TAM model and stand up and say gender inequity is a bad thing?

Gender inequity is insidious. For women of color, it means a workplace that mixes racial bias with gender bias in ways that multiply the occasions for hurt, harassment and EEOC complaints. We’ll leave you with the same quote that ended our TAM speech. It’s from a participant in our recent survey who wrote,

“I feel like a second-class citizen.”

No one working in the museum world should feel like that. We have the power to make change. Let’s do it.

Joan Baldwin & Anne Ackerson


Why April 10, 2018 Matters

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April 10 was equal pay day for white women working in the museum world. That’s the day they make as much as their white, male colleagues did in 2017. For women of color, equal pay day arrives in August, for Native women, September, and almost 6 months later Latina women finally catch up. If you are an Asian woman, you arrive at equal pay day a month ahead of your white female colleagues.

We’re reporting on all of this, not to make you feel discouraged although it undoubtedly will. We understand that for many people–including many women–the whole topic of gender is exhausting. You are not alone.

Asked whether she was contemptuous of smart women, writer Susan Sontag snapped, “Where did you get that idea? At least half the intelligent people I’ve known have been women. I couldn’t be more sympathetic to women’s problems or more angry about women’s condition. But the anger is so old that in the day-to-day sense I don’t feel it. It seems to me the oldest story in the world.”

For many, it’s this sense of being on an endless loop, playing out decade after decade, that annoys some and discourages others. We’ve heard it all before. We’ve lived it. It makes us cranky, but then we feel like it’s time to let go and get on with life. And it’s difficult to sustain hope when women are frequently seen as a huge Oliver Twist chorus of “Please sir, I want some more.”

Except for museum staff who work for municipal, state or federal organizations where salaries are transparent and public, most of us have no idea whether a particular museum or heritage organization has closed its pay gap. Many institutions actively discourage conversation around salaries, and for a host of reasons, employees comply and avoid talking about how much they make. So unless you accidentally see the CFO’s salary spreadsheet or a colleague’s letter of agreement, you probably don’t know much.

The exception? If you’re the museum director. Then you likely have access to a lot of information, and precious few excuses for an inequitable pay scale. When was the last time you tracked salaries by race and gender for your board? How uncomfortable would it make you, knowing your organization pays a Latina woman significantly less than a black woman, and exponentially less than a white man all for doing the same job?

We hope you are uncomfortable because closing the pay gap is a problem the museum world can solve. And making the pay gap disappear is something any museum or heritage organization should be proud of. So here are five ways to make change so that in April 2019 when Equal Pay Day rolls around again, you can say “Done and dusted” and turn your attention elsewhere.

  1. If you’re an individual offered a new job, negotiate. Know what you need to make to live without constantly worrying. Ask for it.
  2. If you’re a museum leader, chart your staff by gender and race. If you lead a smaller organization, you may not have two staff members who do even close to the same thing. In that case, compare your staff salaries to the ones in AAM’s salary survey. Are yours better by gender, better overall or are there multiple issues?
  3. Bring your salary information to your board, but before you do, understand what salary equity says to staff members. It’s not just words, it’s an acknowledgement that everyone in the organization chart is equally important, not more prized because they’re white and male. Make sure your board understands how important closing the gap is. Across the board raises–were they offered–deepen wage equity rather than fixing it. Close the gap first.
  4. Consider the way your organization hires. Is the hiring process relatively bias free or not bias free at all? Learn what you can from AAM’s Hiring Bias Project.
  5. Recognize your own biases and leave them at the door. Know that when labor economists look at the wage gap, 38-percent of it can’t be explained, meaning it isn’t about training or choices. It’s about how people and their occupations are perceived. Do your part and make change where you can.

Joan Baldwin