People who apply to work at a nonprofit organization generally care. They may be deeply passionate about the cause. Unfortunately, they can also leave at much higher rates. According to this Social Impact Architects article by Suzanne Smith, nonprofit turnover is around 20–22% annually, compared to 12–13% in other sectors. High turnover affects client services, places additional burdens on other employees, and can create a cycle of losing even more good employees as they become overworked. So, what can we do about it?
As a leader in the nonprofit sector, I see this unusually high turnover as a sign of a systemic problem – and one that is solvable. This article by RallyUp explores the challenges of high turnover and, more importantly, strategies for addressing it. I believe the solutions fall into three key areas:
- Compensation, benefits, and opportunities for growth
- Communication, listening, and workplace culture
- Knowledge sharing, continuous improvement, and succession planning
It is easy to blame budget constraints, and compensation is definitely a key factor. Prioritizing employees’ basic financial needs would go a long way toward reducing turnover. But financial concerns are often compounded by a lack of benefits and incentives available in other sectors.
Sometimes, support can be as simple as family-friendly policies. At my organization, many employees work from home, and we offer flexibility around time off for family events. Additionally, employees can bring their babies to work until they turn one year old. This has allowed several staff members, myself included, to continue working without the expense of childcare for our newborns. I am hopeful we can continue improving our policies to show employees that we genuinely care about them.
Beyond compensation and benefits, I believe another major reason good people leave is a lack of interpersonal support and a workplace culture where staff feel undervalued. Nonprofit work can be hard. Burnout and dissatisfaction can be reduced when employees have opportunities for advancement, a strong sense of teamwork, and the ability to voice their concerns and feel heard. I have seen good people stay because they feel supported, even when their pay is lower than comparable private-sector roles. It takes more than a yearly party or unauthentic statements about wanting feedback. The featured photo I included in this post is of a teambuilding project I led at a past staff retreat. Each person painted their own square, and the entire group put the pieces together like a puzzle to symbolize how every person brings their unique experiences, personality, and perspective to create the amazing team we have. Are we truly treating our staff as the critical, valued people they are?
Finally, nonprofits and other niche organizations must prioritize succession planning. Without strong procedures, updated systems, and cross-training, an employee’s departure can leave a major gap in organizational knowledge. We need to invest in all our staff through training, knowledge sharing, and ongoing communication about what is happening behind the scenes.
How does your organization – nonprofit, government, or private sector – reduce turnover? I’d love to hear your experiences and ideas in the comments!
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