Why Nonprofits Need a People Strategy to Boost Employee Retention
Nonprofits are sometimes seen like the underdogs of the business world, fighting for good causes with limited resources. If you want to have a successful nonprofit, we need to talk about a critical element you might be overlooking - your HR team. These unsung heroes need some love because they play a crucial role in keeping your team together and thriving.
Not only is the average turnover rate for nonprofits higher across the workforce, sitting at 19% in nonprofit and 12% for all others, the single greatest reason for voluntary turnover is lack of opportunity for growth, according to a 2023 article by Inside Charity.
No matter what the specific mission is - whether sea turtle conservation or providing resources to refugees - it is people who make the work possible and move the mission forward. And as their employer, it’s your responsibility to be fiscally responsible in managing them - that means employee retention strategies should be just as important as your fundraising and impact strategies.
Here’s three ways you can maximize your people strategy to boost employee retention and reduce turnover and burnout:
Talent Matchmaking
How you recruit employees is the first impression for any potential candidate. We’ve all been on interviews and hopefully ran away from a company when we saw red flags flying: lack of communication, interviews starting late, interviewers who haven’t even seen your resume. Throughout the process, how can you leave them with more positive knowledge about your company's mission than they had before? Creating a journey-mapped candidate experience not only helps you assess candidates to ensure they're a fit for the position, but that they’re also deeply aligned with your mission. Arm your HR team with the ability to tell the story of your mission and impact by employees who genuinely believe in your cause. Whether they get the job or not, give them a candidate experience they’ll remember. When employees resonate with this, it boosts retention rates and creates a passionate workforce that drives your nonprofit forward.
Creating a Supportive Culture of Well-Being
A good people strategy creates a workplace culture where employees thrive, personally and professionally. After all, we are talking about actual people, not just employees. Managers are responsible for ensuring employees are performing and feeling satisfied in their roles, but HR can proactively listen to employees' concerns, be partners to provide manager solutions, and ensure that your nonprofit remains a supportive and compassionate workplace. Your HR team plays a pivotal role in people strategies to prevent burnout and boost employee satisfaction.
Cost-Effective Strategies: Saving Resources
In the world of nonprofits, every donor dollar counts. When nonprofits invest in employee experience, they also show the importance they place on being fiscally responsible: better employee retention rates lead to saving money on recruitment, onboarding, and training. It means you’re working your darndest to ensure that the talent you invest in sticks around, reducing the need for constant recruitment, loss of institutional knowledge, and retaining the best and brightest. And more funds can be channeled into your mission, making your nonprofit more effective and impactful.
HR can be more than just an administrative department if you let it. A strategic HR leader who can focus on more than just compliance, but really understands your mission, employees, and culture, can be the secret ingredient that makes or breaks your organization. They attract the right talent, nurture your team's well-being, and save you money in the long run.