5 Resources to Help Remedy NonProfit Workforce Challenges

As a non-profit organization, summertime beholds a special significance. It’s an opportunity to pause, reassess goals and strategies, and prepare for the remainder of the year. Whether you host a mid-year retreat or you set aside time for a review, now is the time to consider the goals you set at the beginning of the year, and evaluate your progress, achievements, and challenges. This process helps to reaffirm your mission and identify gaps, so you can realign your efforts and resources for renewed momentum.

A concern that frequently surfaces during these mid-year reflections is staffing and the living wage challenge. Unfortunately, high turnover rates and employee burnouts are all too common in non-profit organizations due to the demanding nature of the work and limited resources. These problems are further exacerbated by the competitive salaries and benefits offered by the public sector, resulting in many non-profit employees grappling with the dilemma of earning a living wage while dedicating themselves to causes they truly care about. 

This issue is paramount and has a tremendous impact on any organization’s ability to carry out its mission. The good news is, there are many ways to navigate this challenge. Two new studies from the Center for Effective Philanthropy (CEP) have taken a closer look at the need for funders to support nonprofits in order to improve the problems of insufficient salaries and benefits. 

One organization of note, Filoli, a Bay-Area non-profit, was able to achieve their goal of attracting and retaining a talented team by paying a living wage through resolve and alignment within an organization. They realized that investing in their team was the same as investing in their organization. Once their plan was implemented, they achieved higher productivity, a happier workforce, and greater retention - reducing turnover by 50% in 3 years. 

So, as you contemplate how to tackle your organization's workforce challenges during your mid-year retreat or strategic planning, we are here to help!

Here are the top five resources we recommend and their key takeaways:

1: AFP Career Center: Job Postings and Salary Equity

• Research shows that jobs with salary ranges get 30% more attention. Salary ranges set expectations from the beginning and ensure there is no surprise about salaries.

• Studies show that women and people of color often have huge disadvantages during salary negotiations. Requiring salary ranges promotes equity in the fundraising profession.

2: Successful Nonprofits “$20+/hour Nonprofit Minimum Wage”

• Nonprofit executive directors or board members can help create a more equitable system by setting a wage floor. Every Step made a strategic decision to set a wage floor of $15.00, more than twice the Federal minimum wage. This immediately impacted 44 staff members, some of whom received as much as a $4 per hour increase. Since Every Step implemented a $15.00/hour wage floor, regional and national organizations have recognized it as an employer of choice.

• Establishing a wage ratio: A wage ratio is the ratio of the highest paid employee’s salary to that of the lowest paid employee. If an organization had a wage ratio of 3:1, then the chief executive couldn’t make more than $90,000 if the lowest paid employee made $30,000. A few brave charities have already established a wage ratio, and Mary’s Meals may be best known for that.

3: Forbes “How To Deal With High Turnover In The Nonprofit Sector” by Matt Gayer 

• Leaders can’t keep up with inflation for salaries and overhead, especially at small nonprofits that continue to see heightened demand for basic services in their communities.

• We must combat the expectation that nonprofit workers run on passion for their work. Just as they care about the communities they serve, so too should they be appreciated and supported as people. Intentionally funding and planning for staff well-being is a tangible way to start aligning our daily practices with our values.

4: NonProfit Pro “Many Nonprofit Employees Don’t Make a Thriving Wage — And It Can Harm Others” by Nanci Hibschman and Amanda Wethington

• Employees of nonprofits do life-changing work, from helping people at the hardest moments in their lives, to breaking down barriers in healthcare and education, to fighting for the environment. They give of themselves, but this doesn’t mean they should sacrifice financial well-being to do a job they love.

• Change requires: working with grant makers and other funders to make sure that annual financial plans support a thriving wage; soliciting donors specifically to support a financial campaign; using data to adjust compensation and benefits to align with current housing and living costs in different cities.

5: Solving Our Industry’s Most Wicked Problem: Fundraising for a Living Wage

In an industry focused on the care and concern of our clients, it’s time to start showing equal compassion to our staff. At September’s Raise conference, I’ll be delving deeper into:

• What’s considered a living wage.

• What could be stopping your agency from paying a living wage.

• Tools to strategically plan and fundraise for a living wage for all employees.

Interested in registering? Reach out to me and I’ll send you a code for $200 off. I would love to see you there!

Can’t make it? KHS Consulting offers an ever-growing list of resources and support - helping you to create sustainable fundraising and strategic plans to establish a living, thriving mission, wage, and so much more.