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RUNNING YOUR NONPROFIT LIKE A BUSINESS - CONTINUED
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COMPENSATION TRENDS EMERGING WORKFORCE TRENDS
COMPETITIVE SALARIES: PERFORMANCE-BASED INCENTIVES:
EMPLOYEE WELL-BEING:
Offering market-aligned salaries for mission-critical roles is essential to Variable compensation models tied to organizational objectives can
attract and retain top professionals. Regularly reviewing compensation motivate employees and align their efforts with broader goals. Prioritizing mental health and wellness initiatives, such as offering
to stay competitive can ensure long-term workforce stability. mental health days and counseling, supports a productive and engaged
TRANSPARENT PRACTICES: workforce.
COMPREHENSIVE BENEFITS:
Compensation transparency fosters trust and employee satisfaction. DATA-DRIVEN HR DECISIONS:
Total rewards packages, including health insurance, retirement plans, Clear communication about how salaries are determined and ensuring
and wellness initiatives, contribute to employee satisfaction and loyalty. fairness in pay structures are key to maintaining morale. Utilizing analytics to identify trends in turnover, engagement, and
Professional development opportunities and work-life balance programs recruitment allows nonprofits to make informed adjustments and
further enhance value. optimize workforce strategies.
SUCCESSION PLANNING UPSKILLING AND RESKILLING:
By addressing skill gaps internally through partnerships with educational
PROACTIVE PLANNING: LEADERSHIP DEVELOPMENT: institutions or online learning platforms, nonprofits can build resilient
teams while reducing reliance on external hiring.
With only 27% of nonprofits having documented succession plans, there Investing in leadership programs prepares internal candidates for
is a significant opportunity to improve operational stability. Identifying advanced roles, promoting continuity and growth within the organization. ENGAGEMENT AND RECOGNITION:
potential leaders and equipping them with training and development A culture of recognition that celebrates achievements and aligns work
ensures smooth transitions when leadership changes occur. REGULAR REVIEW AND OPEN DIALOGUE: with organizational missions can reignite passion and commitment
Updating succession plans regularly to reflect organizational changes among employees.
and encouraging open conversations about leadership transitions build
stability and resilience. THE STRATEGIC ROLE OF HR:
EMPLOYEE RETENTION HR leaders in nonprofits are increasingly stepping into strategic roles,
championing DEI initiatives, driving innovation, and advocating for
employee well-being. Aligning people strategies with organizational
ADDRESSING STAFFING CHALLENGES: PREVENTING BURNOUT:
goals ensures a sustainable and engaged workforce.
Adjusting budgets and offering competitive compensation packages, Supporting work-life balance, mental health resources, and stress By staying attuned to these trends and implementing strategic workforce
including signing or retention bonuses, can help mitigate staffing management initiatives are vital to maintaining a healthy workforce.
shortages. Highlighting benefits and flexible schedules further Encouraging regular breaks and fostering a supportive environment can practices, nonprofits can attract, develop, and retain top talent, ensuring
their mission’s success in 2025 and beyond.
strengthens retention efforts. help reduce burnout.
INVESTING IN DEVELOPMENT:
Providing employees with mentoring, training, and opportunities for
career advancement keeps them engaged and motivated. Employees LAUREN GRANDINETTI, CPA, MBA
MANAGER
who see a clear path for growth within the organization are more likely CERINI & ASSOCIATES, LLP
to remain committed.
