August 29, 2022 How Boards Can Alleviate the Nonprofit Talent Crunch

Dottie discusses the skill shortage in the Nonprofit sector and how boards can alleviate the problem.

By Dottie Schindlinger, Executive Director of the Diligent Institute

If you read the headlines about hiring in the job market these days, it’s all about “The Great Resignation” and “Why America has 8.4 million unemployed when there are 10 million job openings,” pointing to the fact that people just don’t want the jobs that are available. While it’s been tough filling jobs with the right skilled workers, it’s been especially hard the last 18 months or so since the pandemic started. The chasm between the skills that U.S. employers are looking for and the abilities that potential hires actually possess is approaching epidemic proportions. In fact, as 4.3 million Americans quit in August, businesses in virtually every industry are struggling to find workers who have the right academic, technical, and professional skills to excel and succeed in the workplace.

The Real Challenge for Nonprofit and Public Sector Jobs

There is debate on whether we are experiencing a labor shortage, or a wage shortage. In other words, while people are not getting paid adequately for their work, there will continue to be a hiring issue.

Other factors influencing the growth of unfilled positions include the extended unemployment benefits, lack of childcare to offset low wages, employees’ concerns about contracting COVID-19, and their desire to take their careers in a different direction. The nonprofit sector is experiencing this challenge keenly. Hiring workers to perform services that are in high demand, throughout the pandemic – such as at Meals on Wheels – has been difficult. The Johns Hopkins Center for Civil Society Studies 2020 Nonprofit Employment Report stated that nonprofit employment showed an estimated loss of over 1.6 million jobs from March to June 2020, which represents 13 percent of all jobs across the sector, even as 50.2% nonprofit organizations were seeing an increase in demand for programs and services.

A Plan of Action to Find the Right Talent – Looking Forward

Boards of nonprofits feel pressured to provide greater support on the hiring front to their executive teams. The boards of mission-driven organizations are getting creative, taking this opportunity to throw out the notion of “this is how we have always done it,” and helping their executive teams create plans of action to resolve some of the hiring challenges. But what are the best ways for boards to support this effort without stepping on management’s toes? A few ideas:

1. Take responsibility for paying better wages: It’s time for the nonprofit sector to shed the reputation of paying only low wages. Nonprofits provide critical services – a fact made evident throughout the pandemic – and should compensate employees accordingly. Boards play a critical role in ensuring their organizations raise adequate funds to pay fair market wages. Sharpen those pencils and start figuring out ways to expand the budget.
2. Work to retain the staff you already have: As everyone knows, it’s far more costly to replace employees that leave, than it is to invest in retaining employees. What professional development opportunities, added flexibility, increased compensation or perks could you offer loyal employees? Learn what they value, then act accordingly.
3. Question assumptions about the “ideal” candidate: There are people with diverse backgrounds and adjacent skill sets who could bring fresh perspective to your team – but because you’re only looking for someone with specific experience, you’ve missed out on hiring these talented individuals. Time to think again. Could someone with years of field experience do the job just as well (or even better) than someone with an advanced degree in the subject?
4. Consider flexible arrangements instead of only looking for full-timers: Time to get creative. Finding that perfect candidate for your traditional full-time role might not happen anytime soon (or ever). How might you fill your needs with a vendor, part-timers, or other flexible arrangements? Adding flexibility helps expand the pool of available talent to fill your open headcount. Meanwhile, your current employees might be less likely to leave if increased flexibility is an option.
5. Lean into your nonprofit’s culture and vision: Employees don’t take jobs only for salaries. In study after study, employees report greater job satisfaction and loyalty when the organization shares their values. How can you integrate your nonprofit’s vision and values more fully into each job position? One example – align performance reviews to your vision and values so employees see explicitly how their work helps advance the cause.
6. Convert some jobs to remote positions: Lastly, boards need to consider whether they have the IT infrastructure and security in place to allow for ongoing remote work (and ongoing remote board meetings too). Work from home (WFH), or really anywhere, has become the silver lining of the pandemic, and employees don’t want to give that up. Ensure your nonprofit can take advantage of this new and likely lasting paradigm.

The last point is important. While not every role can be performed remotely, nonprofits benefit from technology-based solutions that allow them to stay connected, hold meetings, and collaborate seamlessly. In doing so, most organizations will enjoy greater productivity, lower expenses, and dramatically enhanced employee satisfaction and loyalty. To do it right however, nonprofit organizations need better access to modern governance tools that allow them greater capabilities to organize, communicate, and collaborate in a secure way with leaders, staff, and other stakeholders while working remotely.

While the list above provides a lot to consider and navigate in this new hiring world, opportunities abound for nonprofits to make a big difference as well. Plan for the new year, but don’t wait to make changes in the meantime.

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