How to Mitigate the Nonprofit Turnover Rate Problem

Is your nonprofit having a hard time finding the adequate resources to carry out its mission? The truth of the matter is that a lot of nonprofits struggle with finding enough resources to support all of their incredible, life-changing missions. But what do “resources” refer to, anyway?

The resources your nonprofit needs to sustain itself are money, time and, most importantly, people-power. There is a high demand for employees in the nonprofit sector. And although the nonprofit turnover rate is the same as the national average, it seems more notable in this sector because there are many organizations out there that have a revolving door of staff members; they keep changing, and it’s hard to keep up. According to the “2019 Nonprofit Leadership Impact Study,” 54 percent of nonprofits struggle with find enough resources and 35 percent struggle with staff turnover (Figure 1).

Figure 1

And when it came to staff management, 58 percent struggle with providing staff with fair compensation, 52 percent struggle with not overworking their staff members and 48 percent struggle with hiring and retaining high-quality staff members. These are all real challenges that many nonprofits across the globe face on a day-to-day basis.

Figure 2

So, what can your nonprofit do to mitigate its nonprofit turnover rate?

Create a Culture of Philanthropy

People who choose to work at a nonprofit organization are most likely not doing it for the money. If it were just for the money, then they could easily find the same job title at a for-profit company for double the salary and half of the workload. From the people who I’ve encountered and have spoken to, people who choose to work at nonprofits are doing it because it provides them with the feeling of self-fulfillment.

These people probably have some kind of emotional tie to your organization. For example, they lost a loved to a lung cancer; their child has autism; they want to bring good education to children in lower-income communities, they want to help people in developing countries get access to clean water; or they just really love animals. Whatever your mission may be, the people who work for you probably believe in your mission. But remember, there are plenty other nonprofits out there that have the exact same mission you have, so it is your responsibility to make sure you’re creating a place people want to work for.

The best advice I can give you to mitigate the nonprofit turnover rate is to create a culture of philanthropy. It is leadership’s role to create a place where people want to be and where they want to work. It’s a given that you must treat your staff members with respect and always show your appreciation for their hard work.

People are motivated when they are recognized for their hard work and will continue to work hard toward the organization’s mission. A good way of rewarding your employees while creating an unbreakable bond between everyone within the organization is hosting a fun event—perhaps a lunch, a sports outing or a happy hour.

And, leadership, itself, has to be passionate about the organization. The way you can do that is to bestow a positive attitude and create energy around the mission. Tell your employees what makes your organization different from the others and why you chose to be a part of this organization.

So how are you creating a culture of philanthropy? Let me know in the comments below!