The second trap, or thing to avoid, deals with payroll. Churches face risk in a variety of areas. Facilities, congregational unity, financial, security, and our next topic, personnel are just a few areas of danger.
In business terms, churches are in the “service industry” and as a result, typically, 50% of church budgets are dedicated to salaries and benefits. Personnel risk is significant. Operating in the personnel arena without a formal plan makes it even riskier.
Unfortunately, some churches do exactly that. Here is what has happened to some of those who chose not to manage personnel risk:
- Churches have been sued (and lost) after automobile accidents in which it was discovered the church assigned driver had a prior DWI.
- Churches have been sued after discovery of prior child abuse convictions of some of their employees.
- Churches have been victimized by embezzlers with prior convictions.
- Churches have been sued for unlawful terminations.
- Churches have been sued for sexual harassment.
In the next few posts, we will discuss things that should be done in order to avoid situations like these unfortunate churches. It’s important to point out that they were unfortunate primarily because they were careless.
