12/17/07: Keeping the Right People on the Bus: Turnover in Nonprofit Organizations

by Faye Dresner

I recently worked on a project that involved the topic of employee turnover and retention. In the course of the work, I read a lot of research about how to retain good employees in a work world that now perceives staying in one job longer than a few years as “stagnation.” As I was reading through all the strategies available to nonprofit employers trying to retain good employees, I wanted to shout out a word my three teenagers used to say all the time: “Duh!” Truly, so much of what I was reading seemed to be simple common sense. Of course, people want to be asked for their input. Of course, they want to be recognized and appreciated. Of course they want to be fairly compensated. And yet, I continue to hear stories of employers who micromanage, never say thank you, treat their employees with disrespect, and then scratch their heads in wonder (or don’t notice at all) as employee turnover rates continue to rise.

Employee retention is not rocket science. But it does take a concerted effort, dedicated resources, and leadership that understands that people are a nonprofit’s most precious resource. According to demographic research, more than ½ of the 76 million baby boomers could retire in the next decade and their replacements will come from a generation a little more than half the size, most of whom are already working. And to make matters more complicated, the U.S. Department of Labor says that 60% of 21st century jobs will require skills that 20% of workers have. Learning how to retain good employees isn’t a choice anymore. It’s an absolute must for any nonprofit that wants to be sustainable long term.

In case you have any doubts about the utter necessity of stemming the tide of employee turnover in your organization, all you have to do is look at the costs. Just a few of the costs associated with an exiting employee and the corresponding vacancy are:

• the potential cost of temporary workers to continue the work

• the loss in productivity when the work is either not done or reassigned

• the cost of training and orientation invested in the exiting employee and the new hire

• the cost of any severance or benefits for exiting employees

• the cost of advertising and hiring for a new person

• the cost of training and materials for the new hire

• the cost of a supervisor’s time bringing a new hire up to speed on the work

• the cost in lost productivity until the new hire is able to work at full capacity

And these are just some of the costs. Given the high price of turnover, it goes without saying that whatever costs are associated with retention strategies will pay for themselves in a short period of time.

So how does nonprofit leadership ensure that it’s best and brightest stay for the long haul? While there are no guarantees, there are proven techniques for giving your nonprofit the best shot at keeping the most people for the longest time. Some of them are listed below:

• Make sure expectations, roles and responsibilities are clear

• Give employees the freedom to be an active part in shaping their work lives

• Build trust by working in partnership with employees, not by giving orders

• Take a real interest in employees’ well being

• Discuss career advancement and personal growth with employees and create a tangible plan to help them accomplish their goals

• Give employees meaningful input into decision making

• Recognize and appreciate your employees daily

• As a leader, develop self awareness and seek ongoing feedback

• Actively work on creating a good work environment

For more details on how to effectively combat turnover in your nonprofit, keep your eyes open in January for Opportunity Knocks’ Nonprofit Retention and Vacancy Report.

Faye Dresner

Faye Dresner is the founder of Dresner Consulting, LLC which she started to help tap the power of nonprofits and philanthropists to affect change. For over two decades, Faye has served in director-level positions with a variety of nonprofits which has taught her that when a person finds work that is personally fulfilling and life enhancing, both employer and employee benefit.

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