talent management and recruitment
DESCRIPTION
Based on the 2011 Nonprofit Employment Trends Survey, the sector finds its entry to mid-level positions from inside the organization but often goes outside the organization for senior and executive level positions. Is this the best approach and what does survey data reveal about sector talent management programs?TRANSCRIPT
Talent Management and Recruitment: What the Sector is Doing Wrong
and How to Fix It
Dennis Sawyers & Heather Carpenter
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Today’s Speakers
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Dennis SawyersSenior HR Consultant,
Nonprofit HR Solutions
Heather CarpenterResearch Associate,
Caster Family Center for Nonprofit Research,
University of San Diego
Talent Management &
RecruitmentWhat the Sector is doing wrong and how to fix it.
March 16, 2011
Speakers: Dennis Sawyers, Senior HR Consultant, Nonprofit HR Solutions
& Heather Carpenter, Research Assistant, Caster Family Center for
Nonprofit Research
CONTENTS
2011 Nonprofit Employment Trends Survey Key
Findings.
What These Results Mean for Your Organization
Taking a Different Approach as We Go Forward
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2011 NONPROFIT EMPLOYMENT
TRENDS SURVEY
KEY FINDINGS
1. ALTHOUGH THE HR FUNCTION IS VIEWED AS CRITICAL IT
STILL REMAINS A LOW PRIORITY FOR MOST ORGANIZATIONS.
2. NEARLY A QUARTER OF NONPROFITS LOST STAFF IN 2010.
3. WHEN NONPROFITS LAY OFF STAFF, 81% REPORT USING
EXISTING STAFF TO FULFILL THE DUTIES OF THE ELIMINATED
POSITION.
4. TURNOVER REMAINS LOW. ECONOMIC IMPROVEMENTS ARE
NOT BEING REALIZED AS QUICKLY AS ANTICIPATED.
5. IT’S STILL “WHO YOU KNOW” WHICH WORKS THE BEST WHEN
IT COMES TO NONPROFIT RECRUITMENT.
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KEY FINDING 1
HR IS CRITICAL, BUT NOT A PRIORITY
84% of respondents agreed that the HR function is
critical to their organization’s ability to fulfill its
mission.
86% of respondents noted that HR practices play a
role in achieving the mission.
Over half of respondents (59%) agreed that their
organization’s mission informs decisions regarding
HR matters such as employee training and pay.
However, more than half (52%) of respondents
have the responsibilities of HR mingled with other
functions – no dedicated HR professional.
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Source: 2011 Nonprofit Employment Trends Survey
24% Saw a Decrease in Staff in 2010
Better than predicted
Median number of positions eliminated – 3
Predictions look good for 2011
Majority of nonprofits do not plan to freeze hiring,
reduce staff, or eliminate positions in 2011.
60% plan to hire or create new positions in 2011
KEY FINDING 2: NEARLY A QUARTER OF
NONPROFITS LOST STAFF IN 2010
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Source: 2011 Nonprofit Employment Trends Survey
KEY FINDING 3: USING EXISTING STAFF TO FULFILL
THE DUTIES OF THE ELIMINATED POSITION
81% use existing staff to fulfill duties
Leads to potential burnout
New Programs Staffing Strategies
4%
36%
3%
0.2%
55%
2%
0% 10% 20% 30% 40% 50% 60%
Contract with consultants
Hire new staff (full-time or part-time)
Hire temporary staff directly on our payroll
Hire temporary staff through a third party vendor/agency
Use current staff
Use volunteers and interns
Staffing Strategies Used to Support New Programs and/or Initiatives
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Source: 2011 Nonprofit Employment Trends Survey
KEY FINDING 4: TURNOVER REMAINS LOW
Nonprofits in this survey reported a turnover rate of
13 percent.
56% anticipate their turnover rate will stay the same in
2011 as the previous year and 24% anticipate a lower
turnover rate than the previous year
Reasons for anticipated higher turnover in 2011
Voluntary terminations/resignations
Involuntary terminations/resignations
Retirement
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Source: 2011 Nonprofit Employment Trends Survey
Key Finding 5: It’s still “who you know”
when it comes to nonprofit recruitment
Top 5 Recruitment Advertising Strategies
Formal network of colleagues/nonprofits
Informal network of colleagues/friends
Newspaper (local online edition)
CraigsList
Newspaper (local print edition)
Personal Network Sources
50%
50%Formal network of colleagues/nonprofits
Informal network of colleagues/friends
WHAT DO THESE FINDINGS
POTENTIALLY MEAN FOR YOUR
ORGANIZATION?
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KEY FINDING 1
FAILURE TO PRIORITIZE HR LIMITS RESULTS AND
INCREASES RISK AND COSTS
Limits the advancement of the organization’s mission
Limits the development of teams and individuals
Limits strategic perspective
Increases exposure to legal risk
Increases exposure to compliance infractions
Potential increased costs
According to the U.S. Department of Labor the cost of replacing an employee
can be as great as 33.3% of a new hire’s annual salary.
Example: Average salary $50,000 x 33.3% = $16,650 (for a poor hiring
decision).
Costs that add up to that $16,650 (for a poor hiring decision):
Percentage of your salary/benefits (or recruiter’s, hiring manager, etc.)
Re-advertising costs or possible placement fees.
Training costs
Employee morale
Unemployment costs
Hassle for you!
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KEY FINDING 2
THERE IS LIGHT AT THE END OF THE TUNNEL
We have possibly seen the worst of the economic
down-turn.
Opportunity to backfill and/or create new positions
is in the not-so-distant future.
However, emerging challenges with public sector
funding pose a threat to what looks like a possible
strong come-back for the non-profit sector.
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KEY FINDING 3
THE POTENTIAL FOR BURN-OUT IS HIGH
The overwhelming majority indicate that they are
stretching the capacity of current staff -- how far
can we stretch before the band breaks or we realize
diminishing returns?
Are we lean and mean or unprepared to deliver
against critical objectives?
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KEY FINDING 4
PEOPLE ARE STAYING WITH A “SURE THING”
The instability of the economy has produced
commitment to the familiar – risk aversion
Employees are not necessarily staying out of
commitment – it’s a survival tactic
The few who identify seemingly good external
opportunities leap for them – abandoning ship
Some whom the economy has rendered unready
for retirement have decided to move on despite
losses – possibly already burned out
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KEY FINDING 5
OVER-RELIANCE ON NETWORKS MAY BE
PRESENTING CHALLENGES
Though formal and informal networks yield significant results,
diversity challenges give pause for concern.
While diversity is regarded as important, almost half of those
who indicate challenges say that the greatest diversity
challenge is balancing ethnic diversity – attracting qualified
people of color.
Dr. Ivan Misner is the Founder & Chairman of BNI, as well as
a New York Times best-selling author says, “It is human
nature to congregate with people that are very much like us.
People tend to cluster together based on education, age, race,
professional status, etc.. The bottom line is that we tend to
hang out with people who have similar experiences or
perspectives as ours.”
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SO WHAT DO WE NEED TO DO
DIFFERENTLY?
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RESPONSE TO KEY FINDING 1
MAKE THE CASE FOR HUMAN RESOURCE
MANAGEMENT
A necessary partnership for advancing responsible
business practice.
Compliance
Risk Management
A strategic partnership committed to results
Talent Management
Total Rewards
Planning and Monitoring
A trusted advisor
HR and Business Strategy
Employee Relations
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KEY FINDINGS 2 & 3
FULLY CONSIDER THE BENEFIT OF A BROADER
SCOPE OF INTERIM STAFFING STRATEGIES
Volunteers Interns Consultants
No salary costs Low to no salary costs No regular
employment costs
Committed to your
mission
Eager to learn and
add value
Possible opportunity
to negotiate rates
Eager to learn and
add value
Possible future
candidate pool
Experienced, high-
functioning, highly
skilled talent
Possible future
candidate pool
Possible benefit
beyond functional
expertise
KEY FINDING 4
OPENLY COMMUNICATE AND CELEBRATE,
CELEBRATE, CELEBRATE
In times of uncertainty, clear and timely communications are critical
for employee satisfaction.
“People may take a job for more money, but they often leave it for
more recognition.”
“There has been overwhelming evidence in recent years that
recognizing employees when they do good work is not just the right
thing to do, but it also is the smart thing to do if you are interested in
obtaining desired results in your organization.”
Bob Nelson
“People often say that motivation doesn't last. Well, neither does
bathing – that's why we recommend it daily."
Zig Ziglar
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KEY FINDING 5
THERE IS A WEALTH OF OPPORTUNITIES TO
EFFECTIVELY MARKET JOB OPENINGS 03
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THERE ARE SIGNIFICANT
OPPORTUNITIES TO
LEVERAGE SOCIAL
NETWORKING SOURCES
NONPROFIT HR SOLUTIONS
About us Nonprofit HR Solutions is the nation's only full-service consulting firm
dedicated exclusively to meeting the human resources needs of nonprofit
organizations. Since 2000, Nonprofit HR Solutions has worked
exclusively with the nonprofit sector, generating results for organizations
supporting advocacy, health and human services, arts and culture,
education, the environment, faith-based missions and more.
For more information on Nonprofit HR Solutions, please call
202.785.2060 or visit www.nonprofithr.com.
Our services HR Consulting & Outsourcing
Executive Search
Staffing
The HR Cooperative
Nonprofit Human Resources Conference (Oct 9-11, 2011)
Nonprofit HR Symposia Series (Spring 2011)
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TALENT MANAGEMENT &
RECRUITMENT
www.nonprofithr.com
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