Page 19 - 2025 Nonprofit Industry Trends

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JILL KRUMHOLZ EMPLOYEE EXPERIENCE AND WELL-BEING

CO-OWNER & MANAGING PARTNER The employee experience and well-being will continue to be top priorities for organizations. According to ADP in their Trends and Priorities Report for 2025, employees
REALHR SOLUTIONS LLC who feel cared for by their employer are 92% more likely to feel engaged at work, 65% more likely to be loyal, and 56% more likely to be productive at work.

Thus, employers are focusing on how to enhance employee experience. In addition, nonprofit leaders are recognizing the toll that stress, burnout, and low wages are
taking on employees. Key recommendations:
In this rapidly evolving landscape, executive leaders and trusted HR partners will be required to understand complex employee needs and shifting compliance
issues. This will mean identifying priorities and navigating the demands of a diverse and changing workforce, addressing employee well-being, enabling continuous • Invest in creating workplace cultures that continually emphasize alignment with mission and values and ensure that employees feel valued and see the impact of
learning and talent mobility, and responding to developments in generative AI, and legislative changes in pay and overtime practices. their work.
While there are many HR-related demands that organizations will need to address in the coming year, some of the more important areas of concern are: • Create an inclusive and socially responsible organization, ensuring diversity and attention to employee’s personalized needs.
WORKPLACE FLEXIBILITY/REMOTE AND HYBRID WORK • Invest in low-cost mental health programs and resources to support employees dealing with the emotional toll of the work. This may include counseling services,
peer support groups, and training for managers to identify signs of burnout.
Remote and hybrid work will continue to shape HR priorities in 2025. Key to an organization’s success will be managing and enhancing remote work policies to
attract and retain top and diverse talent. Key recommendations: • Expand policies that promote a healthy work-life balance. This includes flexible work hours, paid time off, and an emphasis on disconnecting from work during
non-work hours.
• Develop and formalize remote work policies and communications regarding performance and expectations. Policies should support a strong virtual culture,
promote work-life balance, and employee well-being. LEGISLATIVE CHANGES
• Remote employees should be provided with the same access to resources and opportunities and supported by digital collaboration tools. Nonprofit leaders will continue to see changes to laws and regulations that will impact the workforce and result in additional expense to employers. Potential legislative
changes that will impact HR priorities in 2025 and key recommendations:
• Building strong leadership is critical to remote work practices. Effective leaders will prioritize employee development and skill building to foster engagement,
support collaboration, and maintain team morale virtually. • There is continued pressure to ensure that employees are paid equitably. More and more states and localities are passing laws requiring employers to disclose
salary ranges in job postings. Additionally, some states require pay transparency internally. This means internal pay audits and ensuring compliance will be critical.
TALENT DEVELOPMENT AND SUCCESSION
• There is a trend toward expanding family and medical leave. Changes in national and state leave laws include paid family leave, sick leave, and parental leave,
Nonprofits face high turnover rates most often due to lower pay and limited and unclear opportunities for advancement. Nonprofits also face leadership gaps impacting how nonprofits manage employee benefits and work-life balance. Nonprofit leaders will need to adjust policies to stay compliant and competitive.
often due to their small size and flat organizational structure. Key recommendations:
• In anticipation of further increases in the threshold to qualify as exempt from overtime under the Fair Labor Standards Act, it is important for employers to conduct
• Identify ways to invest in programs to ensure that employees can grow within the organization. internal tests to ensure proper classifications and anticipate potential costs with these changes.
• Consider ways to make changes to organization structure and build career ladders that create opportunity, including to build leadership capability for the • Additional laws requiring employers to disclose the use of AI in employment decisions will be forthcoming. Employers should continue to monitor new legislation
future. and comply with laws that address the development of AI systems and the use of AI effectively and responsibly at work.
• Expose employees to projects and stretch assignments, provide cross training and identify skill building opportunities. In summary, nonprofit leaders will need to continue to focus on identifying trends in their environment, understanding their organizational priorities and continuing

• Create mentorship programs, communicate clear career paths, offer leadership development programs, and provide opportunities for upskilling. to align practices with their values and mission. By prioritizing flexibility, complex and diverse employee needs, career development, employee well-being, and staying
informed about regulatory changes, organizations will be better positioned to effect change and thrive in 2025 and beyond.