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Pacific Business News
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June 12 , 2005 |
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Creative recruiting helps nonprofits be competitive by Sally Little With April's unemployment rate at 2.9 percent, Hawaii's nonprofits are faced with a very competitive job market. This is very challenging for nonprofits as their salaries and wages generally lag behind those of for-profits. In a tight job market, corporations and small businesses attract employees by increasing their salaries and wages and passing this cost on to their customers. For those nonprofits dependent upon foundation and government grants and donations, raising salaries to attract employees may not be possible. The decline in the stock market preceding and post Sept. 11, 2001, still continues to manifest itself in lower levels of foundation giving. Government funding is precarious and, though the State of Hawaii's revenue figures are positive and optimistic, many previous cuts to government contracts have not been fully restored. Hawaii's donors are generous, but the competition for their contributions is intense. The level of individual giving has not increased beyond 1 to 2 percent. In a competitive job market, staff retention may also be problematic. The median price for a single-family dwelling on Oahu is $610,000; this making homeownership challenging, maybe even impossible, for nonprofit employees. Even the most dedicated nonprofit employees feel pressured to enter the for-profit sector or leave the islands altogether. However, there are strategies that will help nonprofits recruit and retain employees in this competitive job market. The following tips should prove helpful. * Create an inclusive organizational culture. Listen to your employees and engage them in the active management of the organization. This is particularly important for employees under the age of 40. Unlike the boomers, those under 40 were schooled in group projects and appreciate actively participating in goal setting and project implementation. * Brand your nonprofit as "the" best place to work. Pay attention to your reputation. Unfortunately, bad news from disgruntled employees travels faster than good news and bad news tends to stick in the minds of possible employees. Use your Web site, internal and external communications, and the media to tell the story of everyday staff who are making a difference in the lives of those in our communities. Highlight why they enjoy working at your nonprofit. * Create transparency in your hiring process. Allow and encourage primary candidates to interview fellow co-workers. Many potential employees feel that managers may not know the "real" work of the organization and that they are not a credible source of information. Applicants want to know if they will fit with a new organization as much as managers do. For those who have adopted this process, job offers have increased and staff turnover has decreased. * Prevent burnout. All employees including the executive director must take their yearly vacations. Work must be assigned to accommodate a 40-hour work week. Do not allow passion to prevail over good human resource management practices. Recognize that younger workers are particularly concerned with balancing family and work. They may seek a work environment that includes on-site child care, job-sharing programs and flexible work schedules. * Offer retirement benefits. Having sufficient income for retirement is on the minds of all workers in every sector. Many small- to medium-sized nonprofits have not established a retirement program. Check out a defined contribution plan such as a 401(k) or 403(b). A nonprofit may not have the financial resources to contribute to the individual employee's retirement account; however, these tax-deferred, payroll-deducted contributions increase over time. These plans are usually available to organizations at no cost. * Establish a mentoring program. A mentoring program is an excellent learning opportunity and recognizes the value of each employee. A nonprofit may not be able to offer a competitive wage, but it can offer valuable training. Employees need to feel that the time they dedicate to a nonprofit continues to move them forward in their chosen career path. * Develop earned income strategies. Whether an organization decides to charge program service fees, create a product for sale or develop a social enterprise, these ventures create a source of unrestricted monies. In a competitive job market and/or to encourage staff retention, a nonprofit can use these funds to increase salaries or give bonuses. Without a doubt those
employees considering and working for nonprofits need to know that their
work is valued by their employers and contributes to the betterment
of our communities. We can never recognize and acknowledge those who
work at nonprofits enough. Yet, recognition alone is not adequate, especially
in a competitive job market. Nonprofit managers should take some of
the suggested actions to encourage future and present employees to enter
and remain in the nonprofit sector.
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Copyright 2005, Entrepreneurial Solutions, LLC |
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