People are an organization’s greatest asset. It doesn’t make any difference whether the mission is to raise awareness on an issue or to provide food for the hungry. An organization is only as good as the people who are doing the work.

So imagine, a few years from now, when the largest demographic cohort the world has seen — the baby boomers — exit the workplace. There will be no fanfare. No big announcement telling us that a general labour shortage — throughout the economy and across the country — will become the norm of Canadian economic life. But we know it’s coming, and we at least have to prepare.

Hence the importance of recruitment and retention in the nonprofit sector and addressing the challenges that come with it. According to the HR Council’s Labour Force Study, more than 1.2 million employees, or 7% of the total Canadian labour force, work in 69,000 nonprofits across the country. The long-term viability of our sector is dependent upon the ability to attract and retain workers of all ages.

New research

The HR Council just completed an 18-month research initiative that focused on two streams of potential talent: early career employees and late career employees. The initiative sought to improve our sector’s understanding of the characteristics and motivating factors of both the early career and late career cohorts. First off, let’s look to the research on drawing talent from the early career talent pool.

Indeed, systematically reaching out to the Generation Y cohort as a talent pool is certainly worth the effort. As a first step, it’s important to recognize this younger generation’s’ needs and wants. The HR Council’s Growing Younger report shows that when students first look for careers, interesting work and work-life balance are the most important factors overall as they contemplate future employment. However, compensation is never far from anyone’s mind. The report also shows how students considering nonprofit employment will owe an average debt of $25,000 following graduation. As a result, students expressing a definite interest in the sector expect a starting salary of $40,000 and a salary of $59,500 after five years. For some nonprofits, a budget that supports this salary just doesn’t exist.

While attracting younger generations as they begin to enter the labour force is key, it’s just as important to look to late career employees as a source for talent. According to the HR Council’s Boomer Bridging report, a majority of late career participants view retirement as a changing point in their work lives and not a time to stop working. For various reasons, 57% indicated that they would plan to continue working after retirement. Unlike their younger counterparts, late career employees see “contribution to society/community (46%)” “making better use of skills/knowledge (37%)” and “expanding skills knowledge (35%)” as their top three considerations when looking for a new job. Considering a new job “for increased income” (31%) came up fifth on the list.

A look at the HR Council’s Boomer Boon report, which focuses on late career sector switchers, indicates that baby boomers in general are willing to work for lower salaries or as volunteers. Most likely the reasons for these expectations stem from years of working in the public or private sectors, which have allowed late career employees a chance to generate retirement savings. Alternately, given their historical interest in social justice, baby boomers could take issue with the precarious employment in the sector and advocate for improved wages and benefits.

Competitive opportunity

Money matters aside, its clear that nonprofits have a distinct advantage when it comes to attracting potential talent through the concept of interesting/meaningful work. For late career employees this is especially an important priority. The Growing Younger report demonstrates that “making a contribution and helping others” becomes more important as adults age, giving them an increased sense of meaning and purpose in life.

Nonprofits are known for offering good work-life balance initiatives. A great example is a U.S.-based nonprofit called DonorsChoose.org. “One of our workers makes time to take his kids to school every day and so comes in at around 9:30 or 10:00, while some of the moms on our team make an effort to walk out of the office doors at 5:00 or 5:30 to be with their kids when they’re awake,” says Charles Best, ED of DonorsChoose.org. While there is room for improvement, findings from the Labour Force Study indicate that more than half (57.5%) of employees “Can work from home when and if I want to” and (30.7%) indicate that “My work day has flexible arrival and departure times.”

Trends indicate that whether it’s a life-stage phenomenon or a stable feature of the generation, today’s early career employees appear more likely to view jobs not as long-term arrangements but as stepping-stones to further positions and learning opportunities. However, this trend can prove for many to be a double-edged sword. The Labour Force Study found that, among nonprofits experiencing recruitment challenges, 45% cited competition from for-profit organizations and government agencies and departments as a problem. Just ask focus group participant Sarah, 27, who had this to say about her first nonprofit experience:

“I liked my job in a nonprofit, but…over time, I felt like I had plateaued in my learning. I grew frustrated and tired. I also missed working with men, as my colleagues were almost exclusively women. While we were a great team, I missed having a gender balance.

I decided to take a position with the federal government, working on the same issues that I had focused on in the nonprofit sector. I was ready for a change, for new challenges and opportunities, and it seemed like the obvious next step. Having worked at the grassroots level, I appreciate the opportunity to see and contribute to the larger picture and, I hope, have a wider impact in my work. On a practical note, I also wanted more job stability, access to maternity benefits, and a pension. My salary is now much better; I can afford my own apartment while still saving money. While the pace at work is busy, I don’t work overtime so my work-life balance is much improved.”

Importance of retention

Perhaps the most important lesson taken from this case study is that it’s one thing to recruit an employee, and then another matter entirely to retain him or her. Yet, despite the heavy competition from other sectors and particularly the government, most nonprofits have a much easier time retaining existing employees than recruiting new ones. Insights from the Growing Younger report show that most employers (59.5%) indicate that it was either “easy” (30.6%) or “very easy” (28.9%) to retain current employees. This evidence is further corroborated by the Labour Force Study, which shows that 53% of employees have been employed by their current organization for more than five years, with nearly a third have tenure exceeding ten years.

Major change can’t happen over night, but there are steps our sector can take to address recruitment and retention issues:

• Collaborate with educational institutions, funders and intermediary organizations to (a) expand access to community-engaged learning opportunities; and (b) address capacity issues in nonprofit organizations that hinder the sector’s ability to deliver quality experiences to students, interns, and others.
• Implement a range of measures to promote work-life balance for all employees.
• Pursue initiatives that support employee development to promote retention of employees within the sector.
• Improve awareness of the range of career opportunities available in the nonprofit sector and develop high-quality communications materials about careers in the sector.
• Any meaningful response to our sector’s labour force challenges must include greater financial stability for both organizations and employees.

 

The Canadian labour force is aging at a rapid rate, causing concern in all sectors about future productivity, skills shortages and sources of replacement employees. In short, our sector risks being left behind in the race for talent if proactive measures are not adopted as soon as possible. Nonprofits make investments every day. Though it is sometimes difficult to know which are the right investments at any given time, one thing is certain: it’s never a mistake to invest in the right people.

The HR Council for the Nonprofit Sector is a premiere source of information, tools, and research related to nonprofit human resources and labour force issues in Canada. Michelle Jondreau, Communications Assistant, can be reached at mjondreau@hrcouncil.ca.