Nonprofits commonly deal with staffing shortages. Organizations have difficulty finding and retaining quality talent. While many people choose to work in the sector to help people and make an impact, industry-wide factors like low pay and long hours lead to increased turnover rates.
Your organization can take steps today to better understand how to engage and retain your team. Let’s explore employee retention, the impacts of turnover, and how to keep employees engaged.
Why nonprofits struggle with employee retention
Many people work for nonprofits to make a difference in the lives of others, and the work is fulfilling when your organization is successful. However, that fulfillment isn’t always enough to prevent an employee from leaving an organization.
Nonprofit employees cite any of the following reasons when they quit:
- Low pay: Margins are tight for nonprofits, and salaries generally stay low. While the work is rewarding, inadequately compensating employees fuels turnover.
- Lack of upward mobility: Many employees want to work in an organization that offers opportunities for advancement and progress. Few leadership positions in nonprofit organizations get filled internally, and passing over employees for promotions could reduce their loyalty.
- Excessive workload: Excessive workloads often lead to burnout, and employees who constantly feel overwhelmed at work may seek different career opportunities.
- No development: Professional development helps employees grow in their careers and ensures them the nonprofit’s investment in their success. When there is no professional or career development, employees may go to another organization that shows an investment in their career.
- Inflexible work schedule: Flexible work schedules help employees maintain a healthy work-life balance and avoid burnout and stress. If work schedules are inflexible, employees may be more at risk of burnout and choose to leave the organization.
- No recognition or rewards: People want to feel appreciated in the workplace and to have their hard work acknowledged. When employees receive recognition or rewards, they’re more motivated to continue doing good work. Without any acknowledgment, employees may want to find another work environment where the company values their efforts.
- Lack of a mentoring program: Without a mentoring program, a nonprofit organization could experience a dramatic drop in productivity and the loss of institutional knowledge passed from one generation of employees to the next.
3 Target areas to prevent turnover
High turnover limits your nonprofit’s ability to fulfill its mission. Retaining employees allows organizations to build a high-caliber team that positively impacts the bottom line. To address turnover, focus on these key areas:
Employee morale:
Low morale often coincides with periods of high turnover. Nonprofits typically consolidate work when employees leave, which can overburden remaining staff.
To address this, re-evaluate workloads when an employee departs. Leadership team members can step in temporarily or redistribute tasks evenly across the team.
Regularly recognizing accomplishments can boost morale and prevent burnout.
Career development:
Regular development opportunities not only enhance employees’ skills but also make them feel valued. Skill-sharing initiatives among higher-level staff help highlight internal growth potential and strengthen the team.
Work schedules:
Flexible schedules, including hybrid work models, help employees balance responsibilities and combat burnout. Allowing staff autonomy in managing their time improves satisfaction and productivity.
By addressing these areas, nonprofits can mitigate turnover and create a supportive environment that fosters long-term retention.
3 Ways to keep employees engaged
Keeping employees engaged encourages them to stay with the organization long term. These best practices promote employee engagement:
- Pay employees fairly: Invest in your employees by compensating them fairly. Restrictions on government funding, grants, and donations can make offering competitive compensation more challenging for nonprofits.
The key is communicating the need for fair employee compensation to your stakeholders and calculating the cost of fair compensation versus turnover.
- Recognize employees: When employees know their work is appreciated, it adds to the satisfaction the position provides. The recognition could be as simple as a callout in a team meeting, gift cards, or recognizing the employee in an organization-wide email. Some organizations even organize team-bonding events in recognition of quarter or year-end.
- Prioritize work-life balance: Like flexible scheduling, ensuring a healthy work-life balance prevents burnout. Set limits on working hours and encourage employees who are working hard to always take time for themselves. While deadlines exist, trust your employees to get the job done.
Nonprofits do fantastic things, but none of them would be possible without quality employees. Work within your organization to support your team, and your nonprofit will benefit from high-quality, appreciated team members.
Ready to empower your nonprofit team and maximize impact? This webinar explores five actionable ways to save time and engage your staff effectively.
