Page 33 - 2024 Nonprofit Industry Trends

31 32

TRANSPARENT COMPENSATION PRACTICES: UNDERSTANDING EMPLOYEE NEEDS:
Nonprofits are adopting pay transparent practices, driven by legislation related to Regularly assess employee needs, expectations, and job satisfaction to identify
job postings, and an internal shift to provide employees with a clear understanding areas for improvement and implement targeted retention initiatives. Regular
of how their compensation is determined; this helps to foster trust and enhance check-ins, employee surveys and stay interviews provide valuable insights.
overall employee satisfaction.
PROFESSIONAL DEVELOPMENT OPPORTUNITIES:
SUCCESSION PLANNING:
Offer ongoing training and development opportunities to empower employees to
Succession planning is a critical aspect of organizational sustainability for grow vertically and horizontally within the organization, contributing to their job
NAVIGATING HIRING, COMPENSATION, nonprofits. Key considerations include: satisfaction and loyalty.

SUCCESSION PLANNING, AND SKILLS-BASED HIRING: IDENTIFYING KEY ROLES: RECOGNITION AND REWARDS:
EMPLOYEE RETENTION TRENDS IN NONPROFITS: Nonprofits are focusing on skills-based hiring, looking beyond traditional Nonprofits should identify key leadership and critical roles within the organization Implement recognition programs to acknowledge and appreciate employees’
contributions. This can include awards, public acknowledgment, and other forms
that are essential for its continued success.
INSIGHTS FOR 2024 qualifications to identify candidates for a particular role but also identifying skills DEVELOPING INTERNAL TALENT: of recognition.
that are transferrable to other positions.
TECHNOLOGY ADOPTION IN RECRUITMENT: Fostering the development of internal talent ensures that there is a pool of skilled FLEXIBLE WORK ARRANGEMENTS:
I n the dynamic landscape of nonprofit organizations (NFPs), staying The use of technology, including applicant tracking systems and artificial individuals ready to step into key roles when needed. This may involve mentorship Provide flexible work arrangements to accommodate employees’ work-life balance

informed about hiring, compensation, succession planning, and employee intelligence, is becoming more prevalent in nonprofit recruitment processes, programs, training, and leadership development initiatives. Research shows needs, demonstrating a commitment to their well-being.
retention trends is crucial for attracting, developing, and retaining top talent. streamlining workflows and saving time and resources. that an employer’s commitment to developing talent is one of the key reasons CLEAR COMMUNICATION:
employees stay.
RECRUITMENT TRENDS IN NONPROFITS: COMPENSATION TRENDS FOR 2024: CREATING LEADERSHIP PIPELINES: Foster open and transparent communication to ensure employees feel informed,

As nonprofits evolve, so do their approaches to recruitment. Several trends are Compensation is a critical factor in attracting and retaining top talent in the engaged, and part of the organization’s larger mission.
shaping the hiring landscape for NFPs: nonprofit sector. Key trends in compensation for 2024 include: Establishing leadership pipelines ensures a smooth transition when key leaders or EMPLOYEE WELL-BEING INITIATIVES:
executives retire or move on. Developing a pipeline of talent minimizes disruptions
STRATEGIC TALENT ACQUISITION: COMPETITIVE SALARIES FOR MISSION-CRITICAL ROLES: and maintains organizational continuity. Prioritize employee well-being by offering wellness programs, mental health
Nonprofits are adopting a strategic approach to talent acquisition, aligning Nonprofits are recognizing the importance of offering competitive salaries for KNOWLEDGE TRANSFER: support, and initiatives that contribute to a positive and healthy work environment.
recruitment efforts with organizational goals and culture to ensure that new hires roles critical to the organization’s mission to attract and retain high-caliber COMMUNICATION DIFFERENCES BETWEEN GENERATIONS:
contribute to the overall mission and objectives. professionals. Facilitating the transfer of knowledge from senior staff to emerging leaders is
crucial for preserving institutional wisdom. This can involve mentorship programs,
EMPHASIS ON DIVERSITY, EQUITY, AND INCLUSION (DEI): FOCUS ON TOTAL REWARDS: documentation of processes, and collaborative projects. Acknowledge and bridge communication differences between generations in the
workplace to foster skill building and knowledge sharing.
DEI considerations are at the forefront of nonprofit hiring practices, with Beyond base salaries, nonprofits are placing greater emphasis on total rewards ENGAGING THE BOARD: The success of nonprofits in 2024 and beyond lies in their ability to adapt to
organizations actively working to create more diverse and inclusive teams, to packages, including benefits, professional development opportunities, and work- changing workforce dynamics, prioritize talent acquisition and retention, and
foster broader perspectives and better represent the communities they serve. life balance initiatives. In recognizing the diverse needs of their workforce, they The board of directors plays a vital role in succession planning. It is essential to strategically plan for the future. By staying attuned to these trends and embracing
communicate succession plans with the board, involving them in the process and
REMOTE WORK AND FLEXIBILITY: are being more creative and flexible with offerings. seeking their input. a forward-thinking approach, nonprofits can position themselves for sustained
impact and growth in fulfilling their missions.
The COVID-19 pandemic has accelerated the acceptance of remote work. VARIABLE COMPENSATION AND PERFORMANCE-BASED INCENTIVES: EMPLOYEE RETENTION STRATEGIES:
Nonprofits are embracing flexible work arrangements, enabling them to access a To align employee performance with organizational objectives, nonprofits are
broader talent pool and provide employees with greater work-life balance. incorporating variable compensation and performance-based incentives. Employee retention is paramount for the long-term success of nonprofits. JILL KRUMHOLZ
Effective strategies include:
MANAGING PARTNER
REALHR SOLUTIONS