Can Nonprofit Job Sector Shortages Be Reversed in 2024?

Working in the nonprofit sector in 2024 is not easy. Nonprofit organizations have greater pressures than ever before both internally and externally. Employee expectations are changing, and institutional loyalty is waning. Employees are looking for personal benefits wherever they can find the best solution, whether that is within the nonprofit where they work, another nonprofit that is perceived to be a better fit or in the private sector. 

Nonprofits are seeking to reverse job sector shortages, but this problem is complex and evolving. 

The Challenges

Employee shortages are affecting the way nonprofits can operate both from a cost perspective and the ability to provide services.  The reasons for job shortages include salary competition, budget reductions, stress, burnout, plus changing wants and needs by employees. Another major factor is the economy, with inflation dwarfing salary increases. Here’s a look at challenges that result from job shortages. 

When nonprofits cannot hire enough employees to provide vital services, the public suffers as the demand for services increases, the quality of services is reduced and the ability to provide new services is diminished. 

When the strain on a nonprofit is increased, there are consequences. Workplace shortages also create new organizational risks, such as data breaches, untrained staff, and board member liability.

About 71% of nonprofits had increased demands for their programs and services in 2023 while dealing with workforce shortages and growing operational costs, FORVIS, an accounting and consulting firm, found in its annual “State of the Nonprofit Sector” report. Additionally, 80% of nonprofits reported difficulty in filling senior leadership and management positions while 85% reported shortage of available employees. More than two thirds of the nonprofits surveyed plan to reduce services and programs over the next two years. 

Potential Solutions

The nonprofit labor shortage has been with us for several years, but there are ways for nonprofits to survive it. Consider assessing organizational culture and hiring history, looking to your community for referrals, offering greater job flexibility, competing for the talent, considering all backgrounds when recruiting, aligning your vision that attracts others, focusing on retaining your internal talent and ensuring pay equity, according to the Forbes Nonprofit Council. 

There are ways to be better prepared to recruit and retain talent in 2024, offer a competitive compensation package, promote the organizational mission, offer greater work flex options, invest in training and development, engage in employer branding, partner with educational institutions, encourage volunteering to employment pathways, and focus on diversity, equity and inclusion. 

A panel of Forbes Nonprofit Council members has provided advice on how to combat the current nonprofit sector labor shortage. They believe you need to prioritize diversity in hiring, consider cost of living with regards to salary, examine your recruiting strategies, right size salaries and invest in your culture. Also, look outside the nonprofit industry, lean into organizational strengths, create vision clarity, offer flexibility, plus kindness and support. Consider contract workers, partner with universities, invest in young job seekers, look for talent in untapped places, hire college students, and make your workplace more desirable. 

Can nonprofit sector job shortages be reversed in 2024? This question should be on the minds of every nonprofit administrator. The view should be viewed in short- and long-term scenarios. I suggest each nonprofit look at its strategic and operational plan, plus compress the organizational chart. Determine future organizational staffing needs. Develop an internal and external recruiting plan. Seek to create an internal employee retention plan. Constantly examine your staffing needs and focus on new ways of recruiting and retaining staff.

If possible, seek to grow talent for future positions from within the organization. Strive to establish an organizational position to recruit talent. This position will pay great dividends over the years. Pay close attention to each current employee and seek to determine what ways to retain them long term. Use social media to promote your organization in ways that make it stand out from other organizations. 

Recognize your employees and always tell them how vital they are to the organization. Learn from other nonprofits strategies how best to solve staffing problems. Think creatively and be initiative-taking. Make sure your human resources department helps lead the way. The future success of your nonprofit depends upon the success of your employees. Never take them for granted. 

Understand that it will take time and patience to reverse nonprofit sector job shortages. Realize the issue and be initiative-taking in addressing this concern. 

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.