Serving Clients Full Circle

Writings by Randall

Investing in Our Greatest Resource – Our People

In the for-profit world, it's commonplace if not even expected for the employer to spend money on professional development and growth for its employees. So why is it so hard to mirror this philosophy in the nonprofit sector?

Turnover in the nonprofit world is running rampant. One must also say that it's also very high in the for-profit world. But both anecdotal and data-driven analysis indicate that the for-profit world is seeing massive amounts more turnover in positions.  According to some of the latest data, there are nearly 10 million open jobs throughout the United States—or about 12% of the for-profit job market. While there certainly are some newer jobs, most of those are replacing employees who've left.  In comparison, the turnover rate is 50% greater in the nonprofit space where it appears the turnover rate is nearly 19% overall.

What is it that people are looking for?

While there are probably a great number of individual answers to that question, one reason that might account for the difference between the for-profit and the nonprofit environment is the investment placed in current employees.  There are two statistics for you to think about as it pertains to investing in professional development and growth in the for-profit world. Companies will spend as much as $1,500 per employee on learning experiences in the for-profit environment, or anywhere from 1% to 5% of a staff member’s annual salary.

I have too many nonprofit clients who can't even take an online course for $250 as a growth opportunity.

What does it say to an employee who works at a discount in the nonprofit world in comparison to the for-profit one for a similar job when leadership needs them to work harder, smarter, and longer hours but doesn't want to invest in them as a person? If people are the greatest asset that an organization has, how can a leader justify not investing in the people that make that organization successful? And one more. How does the leader justify the unbelievable non-monetary costs, with additional dollars added, of when employees leave taking with them wisdom, knowledge, and experience and leaving other employees to fill in the gaps the best they can?

There's an old adage that says something about “putting your money where your mouth is.”  I feel as if we keep asking nonprofit employees to do more and more with less and less. At the same time, it feels at times as if productivity and efficiency are the only metrics that draw the attention of executive leadership. If we want to stop the massive turnover inside our organizations, we have to make employees actually believe, with action and not just words, that we want what's best for them because it aligns with what's best for the organization. A little investment in their career and future is an enormous outcome for stability in our nonprofits.