Recently, I wrote an article about CEO compensation in the non-profit sector. However, it was rightly pointed out to me that it is not only CEO pay that needs to be reviewed. It also includes salaries and retention for staff at all levels. Further, it’s essential to realize that wages affect retention strategies.
As a social entrepreneur with my businesses today and when I was the CEO of a non-profit, I always believed in paying people a competitive wage. Moreover, I’m always figuring out ways to keep them engaged and motivated on the team. Dan Pallotta has spoken eloquently about how non-profits need to look carefully at all aspects of their business model.
Organizations need to make strategic investments to address the needs and demands of today’s world. That includes staff pay and developing initiatives for solid employee retention. A high turnover rate means that an organization is bleeding money. More money gets spent on open positions, recruiting, onboarding, and training new staff.
For-profit staff can earn as much as 25% more for work with the same qualifications as their non-profit counterparts. For various reasons, non-profit staff may never earn as much as their corporate counterparts. Still, the staff’s quality and motivation determine how well a non-profit meets its objectives toward its mission. So, compensation and retention are important and must be balanced against budgetary demands.
With workers in the non-profit sector accounting for just over 10% of the total workforce in the United States and the many organizations suffering through a high level of costly staff turnover, non-profits need to be cognizant of staff salaries and retention. In addition to competitive wages, non-profits can undertake other strategies to ensure career satisfaction by implementing retention initiatives.
Professional Development
Staff members, particularly young professionals, want to learn and develop. A way to do this is to ensure that staff are members of relevant industry associations where they can attend professional development courses, seminars, and conferences. Non-profits should have conversations during review periods to discuss professional development, which benefits the employee and the organization because staff members are exposed to industry-wide best practices and can bring this expertise and knowledge back to the organization.
Excessive Workloads
Non-profits try to do more with less. To promote an aura of efficiency, some organizations keep adding duties to workers who are already stretched too thin. This leads to low morale, undue stress, and turnover. Look for other ways to accomplish organizational objectives if there are points in the year when extra hands are needed on specific tasks. Consider working with volunteers or hiring temp workers.
Flexible Work Environments
This option is very easy to do well in today’s world. Many organizations prefer to have workers on-site. However, providing some flexibility for virtual work done from home is a big motivator and stress reliever, at times, for employees. With today’s technology and resources, management can still ensure and monitor that employees benefiting from a flexible working arrangement meet all work objectives.
Bonuses
Monetary bonuses for good work are a great motivator. That’s especially true as people enter the holiday season and are looking for extra money. Setting organizational goals and then tying a bonus to its successful accomplishment is a way to reward staff and let them know that you appreciate their going the extra mile.
Mentorship
Mentorship is still a winning proposition in developing junior staff and even providing more seasoned professionals with career development toward increased management roles. In addition, mentorship initiatives serve mentees. Further, it allows the mentors to impart wisdom and knowledge that may otherwise be undervalued or not transmitted to others. Mentorship programs build a bridge between people.
Non-profits can improve retention strategies, decrease turnover, save money, and motivate workers. Moreover, they can increase their success in their goals and objectives by hitting the pause button and taking the time to look at staff.
© 2014-2025 Wayne Elsey. All Rights Reserved.