5 Strategies for Nonprofits to Improve Employee Retention

Companies of every size and industry, across nearly every state, are facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, data shows there are 8.5 million job openings in the U.S., but only 6.5 million unemployed workers, according to the U.S. Chamber of Commerce. 

You likely have heard that it costs three times as much to hire a new employee than to retain existing ones. That cost has only increased over the past few years, making it more crucial than ever to retain current employees. For human services organizations, which commonly operate on limited resources already, this is a significant challenge. The following are five key areas human services organizations should focus their efforts on to help navigate retention hurdles.

1. Improve Company Culture

An organization’s culture sets the tone for beliefs and behaviors that influence how employees and management interact. It also determines how business transactions occur. Employee relationships and connections strongly impact culture. Here are a few things organizations can do to improve culture.

Be transparent and open with your employees. Share the challenges and successes of the organization. Human services organizations should consider regularly communicating with employees throughout the year whether it be via newsletters, emails, formal in-person meetings or virtual meetings. 

Promote a team atmosphere. Bring teams together for a happy hour, lunch or a team event. Consider friendly team competitions. Face-to-face interactions are by far the most important way to maintain employee relationships. Unfortunately, these types of interactions have been limited because of the pandemic and our overall shift to a more digital world.

Constantly share your mission and vision statements. People want to know their work is meaningful, what they do has purpose, and that they are part of something bigger. This is a significant advantage for nonprofits that is easy to capitalize on. Your mission and vision statements establish the long-term direction and goals that guide your daily operations. Make sure all your employees are aware of your mission and vision by continually exemplifying it.

2. Place Emphasis on Mentorship

Millennials are the largest generation in the workforce. It is important to keep in mind that millennials want different things in the workplace than the baby boomers and Gen Xers  — one of which being mentoring. Because of this, organizations should consider implementing a formal mentoring program.

Formal mentoring programs strengthen employee/leadership relationships and can enhance employee development and succession planning. Mentoring provides a sense of accomplishment for both mentor and mentee. Mentoring also provides a stronger sense of loyalty to the organization. Additional benefits include growth, consumer satisfaction, employee engagement, increased job satisfaction, and improved morale and pride. The time spent on mentoring will be worth it in the long-term as an investment in the future.

3. Take Time to Recognize

Recognition shows your employees that their contributions lead to success within the organization, and that they are valued. Recognition is a powerful motivator and leads to improved performance. Organizations have the unique opportunity to show their employees how they are changing the lives of the people they serve. Celebrate the accomplishments of your employees and broadcast them for all to see. Nonprofits could create an appreciation program that recognizes their employees and highlights the social impact of their work.

4. Prioritize Work-Life Balance

As people reevaluate their priorities in this post-pandemic era, more and more often employees are making it clear they are working to make a living, not living to work. Employees are placing more emphasis on work-life balance, which ultimately means providing work-life balance for your employees is imperative. It is difficult to manage work-life balance in our current environment, and especially in many nonprofits given the nature of the work, but if we don’t, it will only get worse.

Organizations can improve their employees’ work-life balance by regularly reviewing workloads, requiring employees to take breaks, focusing on productivity, leading by example, and reviewing perks that are offered. Providing an improved work-life balance will lead to increased productivity and happier employees.

5. Offer Flexibility

Now more than ever, nonprofits must be flexible. Employees need to have the flexibility to attend to personal matters as they arise. To become more flexible, an organization must keep an open mind and respond appropriately to ever-changing circumstances. Keep your core values in mind when determining the extent of flexibility. As always, planning will help when unexpected situations arise.

Whether it be with flexible work hours or work arrangements, being accommodating improves retention, employee loyalty and engagement. Overall, flexibility helps organizations through the tough times we are currently facing.

Nonprofits are facing many challenges today, and retention ranks at the top of the list. Retaining employees is essential to the success of any company, and keeping these strategies front and center will help with that goal in mind. Working on improving culture, mentorship, employee recognition, work-life balance and flexibility will help your organization stand out as the employer of choice.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.