While employee retention and recruitment are a perennial topic across industries, nonprofits face additional hurdles due to limited resources for providing competitive wages and benefits, especially during times of wage inflation and low unemployment. While wages remain a top issue for nonprofit workers, a lack of access to childcare, burnout and lack of flexibility also contribute to worker turnover. Fortunately, there are several things even the most resource-limited organizations can do to support a healthy culture, retain staff and attract talent.
Benchmark Salaries
In a competitive job market, it is important for organizations to offer competitive salaries and benefits. Nonprofit salaries range widely based on role, location and organizational budget. Research what other similarly sized organizations in your region are paying staff and what benefits they offer. Sometimes this data can be found in an organization’s Form 990 (Schedule J) or through salary reporting companies. If your salaries are significantly out of line with the market, it will be challenging to attract and retain staff. Work with your board and leadership to develop a plan to align your compensation structure with the market. It may take time to allocate funding, but few organizations can run well without the right team in place. For the short term, consider one-time bonuses.
Boost Benefit Packages
Boosting benefit packages can be an attainable, cost-effective solution for nonprofits in attracting and retaining staff. Health insurance, paid time off (PTO) and retirement plans are standard offerings, even in the nonprofit sector. According to the PPI Benefits Solutions “2023 Nonprofit Employee Benefits Survey Report,” more than half on nonprofits are now offering access to telemedicine with 40% incorporating virtual mental health support, a benefit that can provide cost savings for both the employee and employer plan sponsor.1
Generous PTO and flexible work arrangements have proven extremely attrative to employees. Most survey respondents offered paid holidays, paid sick and/or vacation days and paid bereavement time.2 For nonprofits that are unable to offer a remote work option, consider free on-site parking, fuel or public transportation stipends or additional PTO.
Broaden Your Candidate Pool
If you are struggling to find strong candidates, consider applicants without direct nonprofit experience but strong transferable skills. For example, someone with sales or marketing experience may be well suited for a fundraising role. Many organizations, from Fortune 500 companies to nonprofits, are involved in second chance hiring, recognizing that the estimated 80 million Americans with criminal records are a massive pool of untapped talent.4 In addition to quality workers, the Federal Work Opportunity Tax Credit gives employers a tax credit for hiring ex-felons, and nonprofits who serve individuals impacted by the incarceration system may benefit from having employees with lived experience.5
The Second Chance Business Coalition offers resources for organizations that want to learn more about second chance hiring.
Consider outsourcing roles such as human resources, information technology and finance. For example, PNC Institutional Asset Management® offers outsourced chief investment officer solutions for nonprofits that don’t have the budget or need for a fulltime, in-house investment advisor. Clients can benefit from a suite of services at a fraction of the price.
Educate, Develop and Train
Training and education are appealing, especially for younger workers aiming to build their skills. Some nonprofits have attracted talent by offering education stipends and on-the-job experience. If you don’t have the budget for formal training or tuition reimbursement, consider an employee book club, a brown bag lunch series where employees share their skills with their peers, or a job-shadowing program. Not only are these attractive benefits, but they also strengthen the skills on your team.
Foster a Healthy Culture
While many nonprofit workers are willing to accept below-market pay for a mission that inspires them, burnout is a common issue for nonprofit staff. Community needs are high, and the jobs can often be emotionally draining. Managers must take time to assess and ask employees for input on their job descriptions, expectations and goals set for their teams.
Culture Checklist |
|
| Does my staff have an opportunity to provide input on their roles and the direction of the organization? | Do we have a culture of feedback and psychological safety that makes them feel comfortable doing so? |
| Does my staff have accurate job descriptions that align with their day-to-day responsibilities and their skills? Would they agree with my answer? | Does my staff have realistic goals and expectations? Would they agree with my answer? |
| Do we have a culture of inclusion and belonging, as well as, diverse representation at the decision-making table? | Are my employees using their PTO? Are they able to disconnect completely from work regularly without having to check email or be "on call"? |
| Has a manager discussed career advancement with each of their team members? | If you answered “no” or “I don’t know” to any of the above, you may be at risk of losing employees. While praise and tokens of appreciation are important, they will not combat an unhealthy corporate culture. |
Succession Planning
Even with a well-executed recruitment and retention plan, some turnover is part of normal operations as employees move on to new opportunities or retire. It’s important to be thoughtful and plan for these vacancies, starting with your most critical employees. While succession planning is common for executive-level employees, think about your office manager or bookkeeper departing suddenly. Be sure there is cross-training for all levels of work. Multiple employees should have access to appropriate files and be trained on daily operations.
Recruitment, retention and succession planning have always been important parts of an organization’s operations, but today’s ever-changing markets and shifting workforce have shown the importance of having a strategic plan in place. With a bit of foresight and planning, even the leanest nonprofits can attract and retain a productive, happy staff.
Nonprofit Strategy & Solutions Group
PNC’s Nonprofit Strategy & Solutions group serves as a dedicated partner committed to empowering nonprofit organizations to achieve their missions. By combining national expertise with local knowledge, we provide comprehensive education and advice on governance, philanthropy, and financial sustainability — going beyond asset management to deliver actionable insights that address the most pressing challenges nonprofits face. With our deep community ties, practical nonprofit leadership experience and strong local market presence, we provide meaningful solutions that optimize resources and deliver a sustainable impact.
For more information, contact the team at IAMNonprofitStrategy@pnc.com.
Sources
1, 2, 3, 7. PPI Benefit Solutions - 2023 Nonprofit Employee Benefits Survey Report
4, 6. Second Chance Business Coalition - Why It Matters
5. IRS - Work Opportunity Tax Credit
