SHRM CMP Panel Discussion

January 28, 2014Webinar

Phyllis Shurn-Hannah, SPHR – SHRM NE Region FSDCrystal Adair – SHRM SE Regional Administrator

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2014 CMP Webinars

          

All webinars start at 3:00 p.m. (ET)April 24th

August 26thDecember 11th

Send Webinar topics to Phyllis

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From a President’s Perspective; Expectations of a CMP

Gloria Sinclair Miller, GPHR, SPHRPresident, Philadelphia Regional Chapter

HR Director, Bristol-Myers Squibb

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Setting the expectations The importance of building relationship with your CMP Orientation and Check in Meetings

with President Understand the Board Expectations &

Responsibilities Analyze activities that should be

handled by the Board vs. CMP Recognize expectations will evolve as

the chapter grows

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Setting the expectations

In the Beginning – It’s tactical . .. Key responsibilities include SHRM national and state connection, membership, programming, sponsorship, communications.

After a few years It evolves to be more strategic. Key responsibilities include building relationship

in the regions, succession planning.

The evolution of the relationship

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Setting the expectations What I expect

The face The fixer The negotiator The communicator The trusted advisor

A true partnership

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ART SMITHExecutive Director

Middle Tennessee Society for Human Resource Management

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Importance of Fundraising/Sponsorships–Where the money comes from• Membership dues• Event ticket sales• Sponsorships

–Where the money goes• Core member services• Special events • Overhead

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Importance of Fundraising/Sponsorships

Source of Funds Use of Funds

Membership Dues Core Activities

Event Ticket Sales Special Events

Sponsorship Overhead

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Sponsorship Sources– Law Firms–Benefits/Insurance Providers–Banks & Credit Unions

Fundraising Opportunities–Advertising–Conferences, Seminars, Webinars–Golf Scrambles, etc.

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Demographics Professional Level 64% identify themselves as members of their management

team 32% are generalist and specialists 4% otherCompany Size - no. of employees

24% over 5,000 18% 1,000 – 4,999 43% 100 – 999 15% – under 100Years in Profession

59% over 10 years 23% 6 – 10 years 18% 1 – 5 years

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Top 3 Reasons for Membership

–55% - Professional development–34% - Networking opportunities–16% - Professional Affiliation

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Typical Sponsorship Package

Basic Law Firm Partnership Program Present at two (2) satellite chapter meetings* $

950 Conduct two (2) Live Webinars $

1,000 Hold two (2) Legal Education Workshops $ 1,000 Ad in the weekly “Coming Soon” Eblast $ 350

Total Value $ 3,300

Total Investment $ 2,500*

*Represents nearly 25% discount!)

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Succession Planning for the Board– Term lengths of office–Agreed-to commitment on the front end by

chair and their employer (if practical)–Use of co-chairs & vice-chairs for bench

strength– Setting clear goals and expectations– Report back and accountability to the Board

on a scheduled basis

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Elizabeth Lamping

Executive DirectorPittsburgh Human Resource

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Membership Metrics

Important Questions When Developing a Campaign for Retaining and Enrolling Members

Does your Chapter Know?

The economic benefit if a member renews for 10 consecutive years?

The cost of recruiting a new member and how much are you willing to spend?

The average length of membership in your association?

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Cost and Profit of Membership

Formulas necessary for determining the “Cost of Membership” in your Chapter:

Retention Formula Loss Formula Turnover Formula Cost of Servicing a Member Lifetime Value of a Member

– Lifetime Dues Income Formula– Lifetime Non-Dues Income Formula

Cost of Enrolling Members

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Retention Formula

Retention: How many members are you likely to retain each year?

(# of members at the end of the year (1076) - # of non renewals (306) at the end of the current year / # of members at the end of the previous year (1090)) x 100)

(1076 – 306) / 1090) x 100 = 71% retention

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Loss Formula

Loss: The adverse of retention: How many members are likely to not renew this year?

(# of non renewals / eligible renewals) x 100  

(306 / 1076) x 100 = 28.5% loss

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Turnover Formula

Turnover: This is a key to the formula for determining lifetime value. The turnover rate calculates your chapter’s life expectancy if no new members were to join.  (100/ loss rate) (100 / 28.5) = 3.5 years

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Cost of Servicing a Member

Cost of Serving Members: An overly simplified formula to determine the cost per member is to divide the number of members by the total expenses. (Expense / # of Members) = Cost of Members ($410,000 / 1076) = $381.00  For example, in an association with $410,000 in expenses per year, and a membership of 1,076 members, the cost to service a member is $381.

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Lifetime Value of a Member

Lifetime Dues Income Formula : (Dues Income Value of a New Member x Turnover Rate)

For example, $150.00 annual dues x 3.5 year’s results in a $525.00 in expected dues income from one new member.

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Lifetime Value of a Member

Lifetime Non-Dues Income Formula : (Non Dues Income Line Items / Total Members)

For example, in an association with $410,000 income, let's say $287,000 is generated from non-dues. Thus, divide 1,076 members by $287,000 and you determine the non-dues income value per member of $266.00 per member.

Multiply this x 3.5 years (turnover rate) and you generalize that the non-dues lifetime value of a member is $933.00.

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Lifetime Value of a Member

Add the lifetime dues income to the lifetime non-dues income (i.e. $525 + $933 = $1,458.00) which will be anticipated revenue over the 3.5 year expectancy of the member's renewals.

Thus, for every new member, approximately $1,458.00 will be received over the lifetime of his or her participation in the chapter.

If you can keep the member longer than 3.5 years, you've improved the value of the member.

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Cost of Enrolling Members

Enrollment Cost: (Lifetime Value minus (Avg. Cost Serving a Member x Turnover Rate) )

Thus, in our example, the lifetime value of a member is $1,458.00. It should be subtracted from the cost of serving a member over the 3.5 year period of membership ($381 x 3.5 = $1,333.50) to determine the "profit" for enrolling the member.

In this case, enrolling a new member who is likely to remain in the chapter for 3.5 years, the profit is $124.50.

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CMP’S Role in the Selection and Recruitment Process Inform your Board of Directors and

Membership Committee volunteers of your Membership Metrics

Understand what your Member Value Proposition looks like

Volunteers are the face of the organization and should be actively recruiting new members

CMP’s should be keeping current members informed of their membership benefits and retaining the members

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Volunteer Leader Resource Center

Why recreate the wheel - SHRM knows what works! This site was created to assist volunteers and CMP’s with their daily responsibilities. On this site you will find:

Recruitment and Retention Toolkits Membership Survey Samples Sample Marketing Letters for Recruiting New

Members and At-Large Members Sample scripts for voice messages

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Volunteer Selection ProcessVolunteers are an essential element in supporting your chapter’s mission.

Volunteer criteria should be created to clearly articulate the roles and responsibilities expected from all volunteers. This will also help to determine how to best use the knowledge skills and abilities of the volunteers to obtain our strategic business goals.

The primary characteristic of volunteerism “selfless service” makes it very difficult to remove those that may be poor performers. To ensure you have a team of dedicated volunteers working towards the associations strategic business goals a volunteer letter of intent is recommended.

Volunteer selection resources can be found at www.greatboards.org

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Volunteer Selection Process

Sample of actions to be included on a Volunteer Letter of Intent:

I will interpret (Chapter Name) work and values to the community, represent the Association, and act as an ambassador for the (Chapter Name),

I will abide by the Association’s by-laws and conduct myself in a manner which is in the Association’s best interest.

I will attend at least 75% of committee meetings and special events and will actively support the Association through regular attendance at Association functions.

I will not use my position with the Association for my own financial benefit where such action is detrimental to the Association.

I will work in good faith with staff and other board members as partners towards achievement of the Association’s goals.

If I do not fulfill these commitments to the Association, I will expect the PHRA President/Committee Chair to call me and discuss my responsibilities.

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QUESTIONS

Phyllis Shurn-Hannah Crystal AdairSHRM NE Region FSD Southeast Regional Administrator800/283-7476 ext. 6293 800/283-7476 ext. 6370phannah@shrm.org crystal.adair@shrm.org