3 Ways Foundations Can Help Nonprofits Attract and Retain Talent

It’s no secret that most nonprofit organizations don’t pay people what they’re worth. Yet despite this, nonprofits still have a powerful draw. 

Many people leave better-paying careers to dedicate their lives to service and making a difference in their communities. You couldn’t ask for a better recruiting tool. Too often, though, nonprofits’ compensation packages are too weak to convince highly skilled individuals to leap. 

But what if nonprofits could compete with government and private sectors to recruit and retain top talent with resources nonprofits are uniquely positioned to offer? 

Nonprofits can use three low-cost, proven tools to better compete: four-day workweeks, coaching and mentorship, and employment contracts. As grant-makers and partners, foundations can support and even incentivize grantees to implement these programs, helping create stronger, more sustainable organizations. 

1. The Four-Day Workweek for Work-Life Balance

In the past few years, the four-day workweek has garnered attention in dozens of countries. The vast majority of employers that have tested it out have not gone back. I follow this issue closely and have read hundreds of articles with testimonials from small- and medium-sized employers about the power of the four-day workweek. Not only are most employers as productive or more productive than before, but the change has also helped them recruit and retain talent.

I implemented the four-day workweek at a national climate change organization in 2022 with great success. The organization maintained its impact while improving the employees’ quality of life. 

While nonprofits may find it hard to compete on salary, stock options and fringe benefits, we can decide to value rest, work-life balance and flexibility. Philanthropic organizations can incentivize this transition by encouraging organizations to explore this model. If the four-day workweek can magnetize talent, it could also be a force multiplier for grantees’ missions.

2. Coaching and Mentorship to Level Up

One thing I love about the nonprofit sector is its willingness to accept talented and passionate people from nearly any sector or field. This is an underappreciated recruitment tool. With a little bit of coaching or mentorship, many people can recalibrate their skill set toward a career in nonprofit service. 

Coaching can be expensive but philanthropy can bring down the cost by using economies of scale to provide coaching to all grantees who want access. Foundations can even band together with other funders to bring down the cost further. 

Even better is the option of group coaching. Some funders, like the Evelyn & Wlater Haas Jr. Fund, were sector leaders in promoting coaching. There is a powerful impact when peers help each other, especially among nonprofit leaders and executives. The most disruptive person to replace in an organization is the executive director, so providing access to coaching can be a huge money saver and mission accelerator. 

3. Employment Contracts for Security and Peace of Mind

I am constantly blown away by how few executive directors of nonprofits have employment contracts. Employment contracts protect workers from being fired without cause and for other abrupt changes to the employees’ responsibilities. 

It is in everyone’s interest that the organization judge employees on merit and that people can focus on the mission instead of arbitrary factors, personalities or office politics. Employment contracts also cost nonthing to put into place but create a powerful sense of security and confidence. 

Many employees would gladly leave a big corporation (with the constant risk of layoffs) for a smaller employer that is willing to guarantee their livelihood will be based on merit. Employment contracts are also great for retaining and attracting a diverse workforce since explicit and implicit bias is still common in workplaces of all kinds. By helping nonprofits understand the benefits of employment contracts, foundations can provide one more tool to strengthen our sector. 

Incentivizing and Supporting Grantees

Philanthropic organizations play a unique role in supporting and encouraging grantees to build stronger, more sustainable organizations. With tools like technical support, capacity-building grants, general operating support and even the questions asked on grant applications, foundations can incentivize grantees to better focus on long-term sustainability and impact. 

The four-day workweek provides flexibility, rest and work-life balance for nonprofit staff. Coaching and mentorship can be inexpensive and powerful ways to help people break through limiting beliefs and level up their confidence quickly. Finally, employment contracts have gained popularity because of the labor movement and are a free tool that can give nonprofits the edge in recruiting and retaining talent.

Encouraging and supporting organizations to adopt these three low-cost but high-reward programs will strengthen the nonprofit sector and protect investments in mission-driven organizations. 

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.