A Guide to Recruitment and Retention Planning for NPOs

Recruitment and retention are vital to any company’s human resource practices. In non-profit HR services, they play a crucial role since employees are a non-profit organization’s (NPO) biggest asset, without whom they wouldn’t be able to realize their mission.

Poor recruitment and retention strategies can negatively impact your organization’s sustainability. They can also have far-reaching repercussions on the sector at large. Especially in the current landscape, rife with change and economic turmoil, hiring and retaining the right talent will help build resilience and ensure you can continue to work towards your mission.

Let’s examine the importance of retention and recruitment strategies for NPOs and what you should consider while building a plan for your organization.

Why NPOs Need a Solid Recruitment & Retention Plan

Non-profit organizations are already trying to achieve big things on a small budget, and their employees are the main drivers of their success. The lack of a proper recruitment and retention strategy can increase employee turnover rates and associated costs, damage your organizational brand and morale, and reduce your organization’s ability to provide services and achieve its mission.

Especially during times of economic turmoil, employees from NPOs are likely to prioritize financial stability over the meaningful work and flexibility that usually draws them to the non-profit sector. Without reliable recruitment and retention strategies, you will likely lose many employees to other industries offering more competitive salaries. Low employee retention can also harm your reputation and image, impacting your ability to secure funding from donors, grantors, and sponsors.

Avoid the negative implications of employee turnover by paying particular attention to your hiring strategies and employee retention in non-profits. This will also help you avoid the long-term costs associated with high employee turnover and yield better organizational results. 

Your recruitment and retention strategies must focus on creating value for your employees, ensuring they feel appreciated for their work, and helping them recognize their direct impact on the organization’s mission. 

Recruitment Strategies for NPOs

Reliable recruitment strategies and employee retention in non-profits go hand-in-hand. Before retaining valuable talent, you must adopt hiring practices to help you obtain that talent. Here are some best practices that are regularly used in HR consulting for non-profits:

1. Embed your mission and values into every step of your hiring process. This approach will help you differentiate between applicants passionate about your mission and those seeking a job.
2. Tap into your existing network and utilize employee referrals to source applicants. This will give you access to talent already associated with your cause or the non-profit world, meaning they are more likely to be mission-aligned and supportive of what you do.
3. Boost DEI efforts in your hiring process by adopting a more inclusive approach and taking steps to reduce unconscious biases within your hiring team. This will enable you to expand your pool of qualified candidates and enhance your employer brand since 56% of employees believe a greater focus on DEI at work is good. 
4. Build a strong employer brand and position yourself as the organization people want to work at. Organizations with a healthy work culture that offers an opportunity for impactful work tend to attract high-quality, motivated employees who are passionate about what they do.

Now that you have a plan to help you hire the right talent, it’s time to take steps to retain that talent and reduce employee turnover within your organization.

Retention Planning for NPOs

Studies show that non-profits that offered tailored employee benefits saw a 33% higher retention rate than those with a regular benefits package. Even though most non-profit workers are driven by their desire to do impactful work, they also value benefits and incentives that contribute to employee well-being and satisfaction. Develop a generous benefits package for your employees, and even consider tailoring it to their unique needs by adding housing support or financial well-being programs.

     1. Provide Ample Benefits and Incentives

Studies show that non-profits that offered tailored employee benefits saw a 33% higher retention rate than those with a regular benefits package. Even though most non-profit workers are driven by their desire to do impactful work, they also value benefits and incentives that contribute to employee well-being and satisfaction. Develop a generous benefits package for your employees, and even consider tailoring it to their unique needs by adding housing support or financial well-being programs. 

     2. Prioritize Development and Growth

Employee expectations have changed over the last few years, and there is a more significant desire for development and growth opportunities. Prioritize learning and development within your organization and encourage your employees to become lifelong learners. Help employees recognize that there are plenty of growth and career development opportunities within the non-profit sector to increase the sector’s value in their eyes. Without impactful learning and development, you risk losing high-quality talent to other sectors and industries that offer more career advancement.

     3. Make Your Employees Feel Valued

When people feel valued and appreciated for their work, they are more likely to want to do more of it. Make your employees feel valued by fostering a culture of recognition. Signal that their opinions and ideas matter by including them in organization-wide decisions impacting their work. Help them understand their value and impact by drawing connections between their work and the organization’s big picture. This sense of value will also increase their sense of connection and agency, positively influencing their morale and loyalty to your organization.

     4. Foster a Healthy Work Culture

Create a work culture that your employees want to be a part of. These culture lessons from the best workplaces in the world tell us that employees are less likely to leave a company that promotes a high-trust culture, takes care of its employees, and has a strong employer brand. Ehttps://escalon.services/peopleops-done-hrpartner/ncourage your leadership to adopt a people-focused approach that prioritizes employee well-being and satisfaction, directly impacting retention and turnover rates.

Final Thoughts

A robust recruitment and retention strategy greatly benefits non-profit organizations. It helps attract the right talent to support your mission and ensures you can retain this talent long-term. With these best practices in your arsenal, you can avoid the high costs, potential damage to your brand, and operational inefficiencies that result from high employee turnover. Experts in HR consulting for non-profits can help you implement recruitment and retention strategies that suit your unique needs, building organizational resilience and ensuring long-term success.

Want to know more about recruitment and retention planning for NPOs? In addition to taxes, accounting, bookkeeping, and CFO services through its FinOps, Escalon’s Essential Business Services include PeopleOps (HR, benefits, recruiting, and payroll) and Risk (business insurance). Talk to an expert today.