Engage with your nonprofit staff to promote a strong team and employee retention.

5 Ways to Impact Staff Retention

/in /by

Most, if not all, nonprofits struggle to retain talent, especially in today’s challenging job market and remote work environment.

Improving employee retention requires an intentional and multifaceted approach. To be successful, your plan must encompass multiple employee touchpoints and a focus on employee engagement strategies.

While compensation plays a role in employee satisfaction, studies show that it is not the sole driver. Employees who feel valued, appreciated, and recognized by their organizations and direct managers are happier with their current situations and more likely to envision a future with their organizations.

The following tips can help boost employee engagement and increase retention:

Redirect your compensation efforts

Offering competitive salaries is a challenge for most nonprofits. Frequently, overhead costs must be kept to a minimum and salary budgets are limited by funding.While replacing employees is costly, many nonprofits simply do not have the resources available to provide increases to pay or pay ranges. Exploring other avenues to address compensation gaps is important.

One approach is to view compensation from a total rewards perspective. Focus on the indirect components of compensation, emphasizing the overall value of the package provided to employees. Indirect compensation includes perks, recognition programs, mental and physical wellness benefits, culture, management styles, and much more.

It is also important to address any inequities in your compensation structure as part of greater diversity, equity, and inclusion initiatives.

Focus on career advancement and development

Another common reason employees leave an organization is a lack of advancement. Often, individuals seek positions elsewhere without fully understanding the developmental paths available with their current employer.

Employees need to feel that they have the ability to move and progress within a company. Meet with your employees to understand their goals and interests. It is imperative for leadership to communicate about the organization’s plans and how individuals may fit into that plan and future opportunities that will be provided.

Formalized policies and practices regarding pathways to advancement and promotions are important to retention. A policy of filling open positions from within and laying out a clear   process is evidence of commitment to employee growth and development.

Consider various ways of providing opportunities for development. Not all movement needs to be vertical. Lateral moves within an organization can be equally valuable. They allow employees to gain greater insight into the organization, develop new areas of expertise, and may open new doors.

Build marketable skills

In addition to changes in responsibilities, employees want to keep expanding their knowledge bases. Formal training programs are always an option, but they can be expensive and require a significant commitment of time. Leveraging internal expertise to develop new skills and competencies can be an effective and economical way to provide opportunities to develop new skills.

Some common initiatives include lunch and learns, peer mentoring, and preceptorships. This cross-pollination connects people across your organization, building rapport, trust, and camaraderie that deepens their connection to the organization.

Recognize the pressures on employees

Employees experience stress both in and outside of work. Regardless of the source, the resulting mental fatigue impacts work performance. Society is becoming more in tune and comfortable with discussing and addressing mental illness and stress. Top employers show similar understanding by instituting benefits that help employees better cope.

Examples of employer-provided support include:

  • Flexible work arrangements
  • Generous paid time off
  • Access to mental health services
  • Educational programs that address common life stressors

Providing resources to support personal and family challenges shows your employees that you value them as people. These benefits and programs evidence an organizational commitment to stand by employees through both significant, life-altering events as well as everyday obligations that may cause chronic stress.

Commit to transparency and clear communication

Employees need to know how and why decisions are made. Do not allow the rumor mill or employee imaginations to tell your story. Frequent, honest communication undermines the spread of inaccurate information, allows for understanding, and builds trust between leadership and staff.

Communication should be two-way, not just from leadership down. Build a culture where employees not only expect managers to ask for their input but feel comfortable offering their opinions. Find out what your employees think about important topics, including what they like and dislike about working at your organization.

Common mechanisms for gathering employee perceptions and ideas include:

  • Town halls
  • Climate surveys
  • Team meetings
  • One-on-one sessions
  • Stay interviews
  • Exit interviews

Welcome feedback in a positive fashion, as negative responses will only stifle future participation.

Once you have this information, do not sit on it. If you are going to ask for feedback, it is crucial that you take action. If action is not possible, circle back to employees to explain the decision-making process.

Emphasize your calling

Typically, the employees that a nonprofit attracts are passionate about the organization’s mission and have a strong desire to serve. Capitalize on this connection to keep your employees excited about being part of your team.

Integrate your values and mission into everything you do – your culture, policies, and initiatives. When your mission is central to serving your constituents it is also critical to how you treat your employees. A consistent reminder of the good that comes from their efforts will inspire and have an impact on employees’ long-term commitment to your organization.

In closing, putting together a retention strategy that addresses your organization’s unique needs can be challenging. It can be helpful to seek guidance from professional HR consultants to identify best practices and help implement change. Whether you decide to seek external assistance or develop your plan in-house, the above tips will point you in the right direction for developing a winning retention plan for your organization.