|   | 

When Compliance Complements Culture

Legal compliance is critical, but when applied without compassion, it can muddy school culture.

Jan 29, 2025  |  By Jeffrey Shields, NBOA

culture meets compliance
Jeffrey Shields, FASAE, CAE
NBOA President and CEO

Independent schools aren’t simply places of work. They are communities where employees — both faculty and staff — view their roles not just as jobs but as vocations. That sense of mission means that culture sometimes clashes with the need to follow the letter of labor laws. A top challenge for HR professionals in our schools is ensuring that policies and practices comply with employment laws and regulations while also honoring their institution’s unique culture.

A prime example of the compliance-culture conflict is classifying employees. Misclassification of employees is a top-of-mind issue right now in schools, according NBOA’s senior director of human resources programs, Amber Stockham. Recent changes in salary thresholds for exemptions — which in late 2024 were dramatically overturned — forced many schools to re-evaluate employee classifications, causing tension when long-standing employees were reclassified as hourly. That’s because classification isn’t just a sterile legal framework; it’s fraught with cultural nuances around value and status. In a setting where most faculty members are salaried professionals, a change from exempt to hourly can feel like a demotion or, perhaps worse, disrespect.

“When you tell an executive assistant that they are now a non-exempt, hourly employee who now will have to start clocking in and out while their teacher colleagues don’t, they might respond, ‘You’re telling me that my job isn’t important,’” Stockham said. “That’s a difficult conversation for both the employee and the HR manager.”

Easing Tough Conversations

So what can we do? Stockham has some advice. In any conversation about compensation, separating “pay” from “value” can help bridge that compliance and culture divide, maintain morale and build trust. HR leaders should explain the change as a legal requirement rather than a personal assessment of the employee or of the work they do. On the personal side, they can emphasize the positive qualities the employee brings to the school and the importance of their work. And they should also take time to listen to the employee’s feelings and acknowledge them.

I can’t emphasize enough the importance of having open, honest dialogues around culture and compliance. HR leaders can lay a groundwork of trust by sharing both good news and bad.

I can’t emphasize enough the importance of having open, honest dialogues around culture and compliance. The foundation for any successful interchange is trust. HR leaders can lay a groundwork of trust by sharing both good news and bad. Telling the truth and owning the bad things that happen at schools — which could be anything from a lower-than-expected salary increase to allegations of abuse — fosters trust and transparency — so does soliciting honest feedback. But don’t just send out an employee survey and file the results away on your computer — acknowledge, discuss and act.

Clear Boundaries

Another top concern I’m hearing about is boundaries. Schools encourage faculty and staff to bring their authentic selves to work, but that approach can create tension when personal values and political stances collide with the school’s mission or community values. Recent global events have underscored the importance of setting clear boundaries around acceptable workplace behavior without infringing on individual beliefs. “You have to walk a line where school leaders are not telling employees what to think or believe, but rather clarifying how to act on campus,” explained Stockham. Some employees may not be able to accept or achieve that balance and will leave, or, in some cases, schools will face the tough task of letting them go.

Both Sides Now

I recently had an enlightening conversation with Matthew Batastini, whose previous experience as a labor lawyer for independent schools and now as a school administrator gives him a perspective from both sides of the culture and compliance equilibrium. Batastini moved from managing partner at Schwartz Hannum PC to general counsel and director of HR at Brooklyn Friends School in 2022.

At Brooklyn Friends, he doesn’t perform the day-to-day human resources functions — that’s the responsibility of Brooklyn Friends’ knowledgeable and skilled HR manager. Instead, Batastini takes a high-level view of overseeing all things HR, assessing and setting priorities from an HR perspective for the school’s 200 colleagues, as the school calls employees in a spirit of inclusivity.

Batastini appreciates the new role for two reasons. “I’m able to really drill down on legal and HR issues, rather than just being called in when there is a problem. And I’ve gotten to know the people and the culture of the school.” His inside role and the trusted relationships he’s built with the head of school, the leadership team and trustees allows him to give more precise advice and be more candid about the risks that the school can and cannot take.

Capitalizing on Legal Advice

Of course, not every school can afford to have their own legal counsel on staff, but Batastini shared with me several ways schools can maximize their access to legal advice. He emphasizes the need for the heads of school, trustees and other leaders to build a strong relationship with their school’s legal counsel, whether your school has its own in-house attorney or not. “When you have those trusted relationships, you can evaluate and make those hard decisions in a more effective way.”

Schools can seek out teachers, business officers or diversity managers who also have legal backgrounds and can offer advice in their areas of expertise. It's these kinds of colleagues that may be the best at bridging the gap between school culture and legal compliance, as they know both well.

The expense of hiring and consulting an attorney about HR issues can cause schools to wait until a crisis occurs. Batastini urged school leaders to be proactive rather than reactive. His advice: Consider taking 25% of what you expect to spend in a year on legal services and use it to address issues that need attention proactively. “Call your lawyer on July 1, when things might be a little quieter, and ask what they recommend that you address. Take 30 minutes to do that work,” he suggested. “Maybe it’s the most important documents for your school, like the employee handbook or employment contract. Make sure those documents say what you need to do because when a crisis occurs you can’t fix them after the fact.”

Schools can also be resourceful in adding sources of legal know-how to their own ranks. “A lot of lawyers are looking for work outside of the legal field, and a lot of law school graduates won’t end up working at law firms,” Batastini said. His particular area is HR, but schools can seek out teachers, business officers or diversity managers who also have legal backgrounds and can offer advice in their areas of expertise. It's these kinds of colleagues that may be the best at bridging the gap between school culture and legal compliance, as they know both well.

As business leaders, we must ensure compliance, as it offers legal protection and organizational consistency. It is to our peril, however, should we ignore the vital element of culture, which fosters a sense of belonging, community and alignment with mission. Maintaining a balance between the two means school business leaders must not only be well-versed in labor laws and regulations but also creative, compassionate and willing to have those tough conversations.

Jeff Shields signature

Follow NBOA President and CEO Jeff Shields on LinkedIn.


Advertisement
TIAA
Advertisement

NET ASSETS PODCAST

Net Assets Podcast

Listen to the latest episode of the Net Assets podcast.

Get Net Assets NOW

Subscribe to NBOA's free twice-monthly newsletter.

SUBSCRIBE