The Hiring Crisis in the Nonprofit Sector - What Can We Do?
By significantly understaffed, we are referring to 20% or more of the organization’s positions are vacant.
NOTE FROM OUR TEAM: In the heart of our sector, there is a people problem. Nonprofit organizations are understaffed and many organizations are not able to find and hire the people they need to fulfill their mission. The nonprofit workforce issues are not just a statistical revelation; they are a pressing challenge that impacts your ability to fulfill your mission and serve those in need.
In this article, we will shed light on the crucial facts outlined in the latest Nonprofit Workforce Survey Results from the National Council of Nonprofits, and, more importantly, discuss actionable steps we can take to address this crisis together.
At Talbott Talent, a recruiting firm exclusively serving nonprofits, we help you find great people - and solve the people crisis at your organization. As we review these findings, we stand committed to guiding you through these challenges. Our expertise isn't just in recruitment; it's in understanding the pulse of the nonprofit sector, recognizing the profound impact of these shortages, and collaboratively working toward solutions.
Understanding the Nonprofit Hiring Crisis
The nonprofit sector is facing an unprecedented workforce crisis. The latest survey, "Nonprofit Workforce Shortages: A Crisis that Affects Everyone," provides a stark illustration of the challenges we confront daily. With a staggering three out of four nonprofits reporting job vacancies, the landscape is changing, and not for the better. These vacancies aren't just numbers; they represent unfilled roles in program and service delivery—positions that directly touch the lives of those we strive to uplift.
One striking revelation from the survey is the impact on entry-level positions, the lifeblood of organizational growth. Shockingly,
41.1% of nonprofits find themselves unable to fill entry-level positions that provide direct service.
For many organizations, possibly yours, this means that people are not being served, waitlists are growing, and our missions are suffering. There is also a potential consequence of a ripple effect, creating a talent pipeline gap where our sector is not positioned for the growth and development of the next generation of nonprofit leaders.
High Vacancy Rates Persist
The survey's findings show the persistent challenges faced by the nonprofit sector, with nearly three out of four nonprofits (74.6%) reporting job vacancies. This alarming vacancy rate continues to impact our sector's ability to deliver essential services and fulfill its mission. More significantly, over half of the surveyed nonprofits (51.7%) indicated an increase in job vacancies compared to the pre-COVID-19 era, creating a growing gap in the ability to provide needed services.
Critical Positions Remain Unfilled
A striking revelation from the survey is the concentration of vacancies in positions directly involved in program and service delivery. Almost three-quarters of respondents (74.0%) reported vacancies in these roles, emphasizing the urgency of addressing the shortage in roles that directly impact the communities nonprofits serve. Entry-level positions, crucial for organizational growth, also face a substantial gap, with 41.1% of nonprofits struggling to fill these key roles.
Salary Competition and Budget Constraints Prevail
The survey identifies salary competition as the foremost factor affecting the ability of nonprofits to recruit and retain employees, with 72.2% of respondents highlighting its impact. The nonprofit sector competes with for-profit and governmental entities, making it challenging to attract top-tier talent. Additionally, budget constraints and insufficient funds were identified by two-thirds of respondents (66.3%) as a significant barrier, further restricting the sector's ability to address workforce shortages. These financial challenges are interconnected, creating a complex landscape that demands strategic solutions to ensure the sector's resilience.
Anticipation of Decreased Charitable Giving
Looking ahead, the survey reveals concerns about the financial future of nonprofits, with 70.5% anticipating a decrease or stagnation in charitable giving in 2023. This projection adds another layer of complexity to the sector's ability to address workforce shortages, emphasizing the need for strategic planning and innovative solutions to navigate the uncertain financial terrain.
How to Navigate the Nonprofit Hiring Crisis
As nonprofit leaders, we understand the impact of these workforce shortages on the communities we serve. Longer waiting lists, reduced services, and even the elimination of critical programs have a ripple effect that cannot be ignored. When we can't hire enough employees to provide vital services, the public suffers, and the very fabric of our communities is at risk.
In the face of the workforce challenges outlined in the survey, nonprofit leaders must grasp the gravity of the situation. The first step is admitting we have a problem in our sector. Understanding the barriers to recruitment and retention is crucial for developing effective strategies. The major challenges include salary competition, budget constraints, stress and burnout, leader ineffectiveness, internal HR hiring limitations, and the ongoing issue of affordable child care.
Advocate.
Nonprofit leaders should collaboratively explore innovative compensation models, advocate for equitable funding, and engage in dialogue with philanthropic partners to ensure competitive compensation. At the same time, focusing on mitigating the budget constraints that impact recruitment efforts must be at the top of your organization’s priority list.
Partner.
Nonprofit leaders need to be thinking beyond “traditional” approaches, especially if, as the data shows, they aren’t working. As a nonprofit leader, your focus should be on utilizing resources effectively. By leveraging the expertise of a recruiting firm, you not only tap into a vast pool of talent but also alleviate the burden on your existing teams, allowing them to concentrate on core mission objectives. It's a nuanced strategy worth considering, aligning seamlessly with our commitment to overcoming workforce shortages and ensuring sustained impact.
Innovate.
There’s no more “tweaking” staffing plans, budgeting, and hiring processes. Nonprofit leaders need to overhaul hiring processes to be competitive with our for-profit and governmental counterparts. Now more than ever, the nonprofit sector needs to adopt the best practices in recruiting and focus on making our organizations a place where people would LOVE to work. In addition, addressing the challenge of salary competition, prominently identified in the survey, will require you to switch your mode of thinking, and think not of “your org chart” but of a more strategic response to staffing and budgeting.
In tackling nonprofit workforce shortages, nonprofit leaders must rethink how they hire. The report highlights various challenges and solutions, from addressing salary competition to advocating for systemic changes. The call to action is clear: let's use innovative solutions, seek external expertise, and strengthen our commitment to our missions. Standing at the crossroads of challenges and opportunities, our goal is not just to survive but to emerge stronger, ensuring lasting impact on the communities we serve.
Learn best practices in nonprofit recruiting. On the blog…
In the realm of nonprofit staffing, partnering with a professional search firm like Talbott Talent is more than just a good idea—it’s a strategic necessity. By understanding your unique needs, navigating market trends, accessing passive candidates, and managing the entire recruitment process, we ensure that your organization finds the right people to drive your mission forward.