Question: We’ve seen a lot of turnover lately. Do you have any tips for increasing retention?

Answer: Employee retention is one of the most difficult and expensive challenges faced by business owners, managers, and HR departments. Fortunately, the keys to retention are simple and straightforward, though certainly easier said than done. The following three practices are essential:

• Pick the right people in the first place. Put thought and care into your recruitment and interview procedures. The more time you and other employees can spend with candidates, the surer you’ll be they believe in your mission, understand the challenges and frustrations of the position, and want to contribute to your success.
• Make sure your compensation and benefits remain competitive. This is a tall order and may squeeze your bottom line in ways that make you uncomfortable, but it’s necessary if retention is at the top of your priority list. Make it a goal to do a yearly analysis of your total compensation package to ensure it’s at least keeping up with the market. Many employers who know they can’t offer competitive pay offer other compelling benefits, like generous PTO and the ability to work from home.
• Be appreciative. A little gratitude can go a long way. And you can show it in multiple ways–from flexibility when employees need it, to a willingness to hear out ideas, to employee appreciation programs. Even a simple thank you can work wonders.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Studies in 2016 by both SHRM and Nonprofit HR showed that nonprofit workers resigned from their jobs at the same rate as for-profit workers — both at 19%. This myth-busting truth surprised a lot of nonprofit leaders at the time. And now with the pandemic, it’s continuing on a larger scale. The Great Resignation has created an intense employee-employer job shuffle, where lower-paid workers are quitting their jobs for the financial rewards of corporate careers. Meanwhile, higher-paid workers are leaving those jobs in search of more meaningful work.

Nonprofits Feel More Turnover Pain

There are reasons why it seems like nonprofits lose more employees. The truth is nonprofits often feel the pain of employee loss more than corporations — even when the same number of employees are leaving — simply because they tend to lose institutional knowledge that was never properly recorded due to a lack of infrastructure. Who in your organization knows critical donor information? Is it accurately recorded for posterity? Protecting your nonprofit from this type of loss could mean investing in a better program that helps to keep accurate records. Or it could require investing in more companywide training—empowering your staff to use your records system competently.

If you believe such expenses are unnecessary, do you know how your organization bounces back after someone leaves? How difficult is it to adapt everyone’s workload to cover for the last person who left? Was that person a paid employee or a volunteer? What does the organization lose in time, effort and funds to rebuild what was lost?

Remember, as you work to sustain your organization through turnover, it is important to focus some energy on building a resilient and flexible infrastructure that won’t suffer if a key employee leaves.

If you have already strengthened your infrastructure as much as possible and still need to stabilize your workforce, you can easily calculate your actual turnover rate to determine the urgency of your compensation status. If you do have high turnover, especially since the pandemic, it’s time to consider how you might improve engagement with adjusted compensation strategies.

Great Resignation Results

Nonprofits face advantages and challenges in regard to both groups of resigning workers:

• Your nonprofit will benefit by engaging and retaining your current workforce (who already value your mission), but you must offer compensation that realistically addresses their personal financial needs.
• At the same time, your organization will gain some valuable advantages if you can attract and recruit corporate workers with your inspiring mission and compassionate culture, but you will only be able to retain them with credible compensation that provides for their needs.

Your compensation plan can support employee engagement and retention while setting a tone of respect and appreciation. Just follow these two tenets:

• Payment in fair exchange for their time, focus and hard work.
• Expressing gratitude for the benefits that your organization has realized as a result.

Both of these concepts support the adequate pay and rewarding culture that will sustain your nonprofit with an engaged workforce.

Compensation Growth Defined

The term “compensation growth” often leads to two action plans. First, if needed, increase your nonprofit’s pay scale, allowing salaries to reflect current best-practices. Second, meet with each employee upon hiring and then annually to develop a clear compensation plan that allows for reasonable cost-of-living increases and merit raises. Help them trust in a future with your organization. Handling the first action plan will allow you to implement the second. So, where does all that increased compensation come from?

A Valuable Distinction

Total rewards compensation involves thinking beyond the dollar signs on an employee’s paycheck. A more comprehensive approach takes two basic forms: Direct compensation includes the employee’s salary, commissions, bonuses, allowances, and overtime pay. Indirect compensation includes benefits such as health insurance, retirement funding, use of a company phone, discounts to public events, and invitations to internal events such as company picnics. Indirect compensation’s beauty is that it can rise to the size of your imagination without costing a lot.

Find opportunities in your company culture. For example, remote or hybrid schedules will likely remain popular for years. If possible, adopt scheduling flexibility and give employees more say in determining when and where they work. AARP recently reported that the Great Resignation has included many seniors who no longer wish to work full-time schedules. Simultaneously, others need more hours to make up for financial losses from the Great Recession. The trick is to work with them to meet their needs.

There are plenty of other indirect options, such as improved training availability and clear leadership paths. Mentoring and coaching for all employees can keep your staff engaged — even those who are chosen as mentors will value the experience and the trust you place in them. 

Mental Health: 2022’s Best Benefit

Mental health services are critically important in 2022. Socioeconomic and political upheavals accompanied by pandemic and war have left many workers experiencing anxiety and depression. If your nonprofit provides services that help — and you build a culture geared for better overall health — your engagement should rise significantly, and employer brand will shine in the marketplace. Consider these options:

• Offer coverage for mental health care.
• Offer Walk and Talk sessions with a paid therapist or coach.
• Offer paid time off for mental health days.
• Provide enjoyable activities that boost socialization and wellbeing.
• Support a walk-a-thon to promote mental health and destigmatize problems.
• Provide discounts for massages, weekend getaways, local museums and more.
• Balance workloads and reduce stress related to unreasonable deadlines and overwork.

Sometimes Money Does the Talking

No matter what, they’ll need to earn a decent living. Ease their personal budgetary concerns by properly managing your organization’s budget. If traditional income streams have dried up, these options might help:

• Increase your funding through sales. Work with one of several online outlets to create a line of branded products. If you have a website, you can set up an online store. Be sure to develop that with a professional. Promote your products on social media.
• Increase your funding through donors. There are myriad ways to increase funding these days, such as online crowdfunding apps like GoFundMe, Mightycause, FundRazr and Fundly. Research several to pick the best one for you. Items you sell could also be useful as rewards for crowdfunding donors. A branded mug, for example, would be a great gift for those who donate $35 to your cause.

You’ll benefit from a clear business and marketing plan with specific designated use for collected funds. Be honest with donors about your organization’s need for compensation growth. When you compensate them properly, your workforce will help you reach impressive goals that build your brand, draw more donors, and sustain your nonprofit organization.

This blog post was written by Beth Black, consulting writer and editor to UST. Visit PracticalPoet.com to view Beth’s online portfolio and learn more about her editorial services.

Question: We’ve been both super busy and understaffed recently. Is there anything we can do during this time to help our employees avoid extra stress or burnout before we can hire more employees?

Answer: Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible:

Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure. Then hold off on nonessential tasks until business slows down or you’ve increased your headcount.

Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spread-of-hours, or split-shift laws.

Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly.

Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress.

Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

To improve the overall effectiveness, the performance, of your team, you’ll want to improve in two areas: efficiency and productivity. Be sure to take advantage of a highly effective yet often-overlooked best-practice procedure for improvement in this area. Ask your employees to identify ways that the team can be more efficient and productive. When you involve the front-line workers who experience systemic barriers, they’ll help you find better solutions in a shorter amount of time. Also, you need to know the difference between the two and which one should be tackled first.

Productivity vs. Operational Efficiency

Efficiency is about accomplishing the same goals with fewer resources, while productivity is about accomplishing more without increasing your consumption of resources. Resources could be worker hours, supplies, phone lines, funds or whatever it takes to get the job done. For example, if your organization uses 10 people to make calls and solicit restaurant donations for a community food bank, improving efficiency could be improving the phone system so that eight people could make the same number of calls in the same amount of time. Improving productivity would be training those 10 people to achieve a larger donation with each call. If you improve both, you’ve built a smaller team that can achieve more. It’s best to begin by improving efficiency. Always start by reducing the amount of wasted effort and resources. Once that has been set and stabilized with a clear baseline of operations, you can work to increase productivity without undermining efficiency. Why spend resources training all 10 people to improve their phone skills if you’ll only need eight people after modernizing the phone system? But once you’ve set up the right team of callers on a modern phone system, you can then target exactly who needs training with greater results. Create a lean, mean machine and then make it run like a dream.

Take the time to strategize your best practices when preparing to improve your efficiency. It’s not simply about cutting costs. Analytics can be a key factor in making the right choices. Once you’ve fully analyzed your processes, then you can begin to pinpoint where waste occurs so that you can begin to fix it in a way that is sustainable, perhaps with incentivized buy-in from the staff.

A promising way to begin improving efficiency is to eliminate bottlenecks. These are points in your workflow where the bureaucracy overwhelms and slows the process of completing a task. Or it could simply be a matter of disorganization. Is there a file that everyone needs but is hard to locate? Do you have a disorganized email system that makes it difficult to find important correspondence? So when someone needs something from these, they have to stop the flow to go find what they need. Bottlenecks can waste time, effort, and money. One strategy to eradicate such waste is the 5S method: Sort, Shine, Straighten, Standardize and Sustain. When you clean up your organization and its worksite, your improved efficiency will lead to more fruitful improvements in productivity.

Remember Productivity and Employee Bandwidth

Once you’ve established a baseline of operations, the next step is to work on productivity. The current vernacular for this is employee bandwidth, which measures in large part team productivity.

But how did bandwidth come to relate to employees? The term started in IT, where it was used to describe the speed of internet that could flow through a particular electronic system. The metaphoric use, today, describes how much productive work a manager can expect from staff members in a particular amount of time. This really is not about making staff work harder or faster to beat the clock. It’s about studying and working with the complete cultural and systemic condition. Is an employee close to burnout? Why? Too much work or too little? Are employees bored with no opportunities for growth? Are some frustrated by red tape and micromanagement? All of these must be taken as part of the bandwidth equation.

UC Berkeley professor Morten Hansen wrote about a study of more than 5,000 professionals over a period of 5 years. He looked at the way people took on workloads and delineated four common personality styles that describe how different staff members behave:

• Accept More, Then Coast. Employees who volunteer for a lot of projects but fail to finish them all.
• Do Less, No Stress. Employees who do the bare minimum to keep their jobs.
• Do More, Then Stress. Like the first group, they say yes to every opportunity, but then they overwork in order to accomplish it all and eventually burn themselves out.
• Do Less, Then Obsess. This is the most realistic group. They choose a few priorities and then work hard to accomplish them with great success. 

In performance reviews of the four groups, the Do Less, Then Obsess group scored as much as 25

percentage points higher than the other three. This style clearly works better as the workers are forced to pay attention to key factors on a regular basis.

Five Tips to Improve Bandwidth

There are five simple steps you can take to raise the level of productivity with employees and bandwidth in your team.

1. Provide opportunities to develop cross-discipline expertise. Are team members stuck in one role, never learning anything new and bored? There’s a simple cure for that. Provide the opportunity for members of different teams to leap into other silos and develop basic skills there. Other benefits include having people who can fill in for a few weeks if you lose a team member.
2. Raise the corporate culture. No doubt you’re already working to maximize the impact of your employment culture. When you emphasize innovation, team relationships, communication, and trust, you build better relationships with your staff and their productivity will increase as they feel happier and more fulfilled in their careers.
3. Effective communication. Avoid confusion and build a smart team filled with people who know what is expected and can express what’s going on at their level.
4. Use technology appropriately. The advent of inexpensive apps and software have made technological advances much more affordable in recent years. You can now improve your efficiency, increase productivity, and build worker satisfaction with several available products. See what your competitors are using and find a version that’s affordable and useful for your organization.
5. Show your appreciation. Build rapport with the team and make sure to commemorate their achievements. The more they feel recognized for their efforts, the more eagerly they will participate in the culture and proactively fulfill their assignments.

You can also improve retention and institutional knowledge by hiring staff with full-time hours and benefits, rather than bringing them in as part-time or contract employees. Grow their roles with your organization and reap the benefits of built-in bandwidth.

Help Them Avoid Burnout

Your goal of maximizing employee bandwidth is to increase productivity without burning out your staff. Employers who push their staff to do work faster or harder, risk a high attrition rate, as employees flee for safer grounds. The first thing to understand is that employee burnout usually has more to do with an organization than any particular employee. You could be overloading your most capable employees with too much work and too many responsibilities.

It’s time to begin thinking of your employees’ time as a precious resource and plan accordingly. If regular overtime is celebrated in your company culture, take another look at that value and check for damage to the lives of your staff members. Too many emails flying back and forth? Too many meetings in one day? When you begin to provide some relief from these constant interruptions, and give employees control over their own calendars, you’ll see your staff’s energy revitalize as they gain a sense of control and autonomy.

All of this comes from the common problem of excessive collaboration. If your organization has grown and developed numerous layers of decision makers, this could be hampering your employee bandwidth. As each stakeholder manages multiple projects, and must sign off on each, the staff members must make themselves available for a seemingly endless round of meetings, conference calls, and emails. The exhausting schedule becomes counterproductive to the point of chasing employees out the door. Restructuring the hierarchy of command can save managers from wasting time on redundant activities and freeing them to accomplish more.

Empower Your Employees

Remember, in the end, most workers want to feel fulfilled and competent in what they do for a living. They want to contribute and make a difference. It’s up to you to give them the workspace that allows them to fulfill their dreams of succeeding. Economist Theodore Levitt said, “Creativity is thinking up new things. Innovation is doing new things.” With this advice, you can allow employees to increase their efficiency, their productivity, and their team bandwidth.

This is an excerpt from UST’s eBook, “Strategies to Secure Nonprofit Endurance” in collaboration with Beth Black, Writer and Editor.

Question: What questions should an employer avoid asking during the recruiting and interview process?

Answer: You should avoid questions that are not job-related or that cause an applicant to tell you about their inclusion in a protected class. These would include questions about race, national origin, citizenship status, religious affiliation, disabilities, pregnancy, sexual orientation or gender identity, past illnesses (including use of sick leave or workers’ comp claims), age, genetic information, or military service. You should also avoid asking about things that might be protected by state law (e.g., marital status and political affiliation).

Asking these sorts of questions could result in rejected candidates claiming that the decision not to hire was based on their inclusion in these protected classes rather than job-related considerations. We recommend looking at your state’s protected class list to be sure you don’t run afoul of it.

During an interview, it is advisable to present the candidate with a copy of the job description that lists all essential job functions, including any physical requirements necessary to perform the job, and simply asking the candidate if they are able to perform the job duties listed. For example, if the position requires someone to lift 25 pounds repeatedly throughout the day, you should ask the applicant whether they can lift 25 pounds repeatedly throughout the day. You should not ask whether they have back pain or any other physical issues that might prevent them from lifting 25 pounds or if they’d filed a workers’ comp claim when doing manual labor in the past. If you need someone to work Sunday mornings, you should ask the applicant if they can work Sunday mornings. You should not ask if they attend church or have other commitments that would prevent them from working Sunday mornings.

If a candidate proactively acknowledges a disability or medical condition, we recommend that you refrain from addressing this candidate’s mention of it directly. Instead, confirm that the candidate can perform the essential functions of the position with or without reasonable accommodation. You’ll want to be certain that you are asking this question consistently of all candidates, and not just those who have disclosed a past medical condition or those you suspect may not be able to perform the essential functions of the position. It’s also important not to make assumptions about a candidate’s ability to perform their job based on their having disclosed that they have a disability or other health condition.

Finally, unless a candidate has an obvious disability or has voluntarily disclosed that they have a disability, we would not recommend asking applicants if they would need accommodation to perform job functions as it would have the effect of creating a pre-employment disability inquiry, which is prohibited under the Americans with Disabilities Act (ADA).

You can also download UST’s Interviewing 101 as a guide for preparing to interview candidates and hiring the right people for your nonprofit. This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineralportal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Employee benefits, also known as perks and fringe benefits, are provided to employees over and above salaries and wages. Employee benefit packages may include overtime, medical, dental, vacation, profit sharing and retirement benefits, to name just a few. Offering these types of benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. A rich employee benefits package can help attract and retain talent. Benefits also have the ability to help set you apart from competing organizations—benefits more often than not, can be the deciding factor when future talent decides to accept a job offer.  

When looking at fringe benefits, there are two types, fringe benefits that are required by law (i.e., social security and health insurance and fringe benefits provided at the organization’s discretion. (i.e. free breakfast and lunch, gym membership, employee sock options, retirement planning services, child care, education assistance, etc.). Organizations will offer additional fringe benefits in hopes of increasing employee wellness and employee engagement. Employees often work harder when they feel their employer appreciates their contribution to the organization. One way to increase employee satisfaction is by providing additional benefits like paid holidays, employer-provided car, workplace flexibility, etc. It will help reduce incidences of a disgruntled workforce and keep the employees engaged.

Healthcare and retirement benefits are important for obvious reasons, but the popularity of additional fringe benefits seem to be on the rise, especially following a global pandemic. Check out UST’s list of Creative Workplace Benefits for some ideas on how you as an employer, can show your staff support while increasing your chances of retaining your employees. 

Being creative with your benefits package at a budget restricted nonprofit can be less expensive and often better received than a raise, so put on your thinking cap and leave no stone unturned. Remember, money alone will not keep employees engaged so take the time to come up with a plan to show them some appreciation.

This article was written by Mitch Stein, Founder & CEO at Pond and shared with explicit permission.

The nonprofit workforce has been through a lot in the last few years—they’ve faced job insecurity and financial shortcomings as well as mental and emotional strain—leaving many burnt out and pursuing new jobs. In order to achieve stability, nonprofits need to be innovative with development opportunities that can help combat preventable terminations.

In a recent article by Pond, “How to Build a Professional Development Plan for the New Nonprofit Landscape,” Mitch Stein shares strategies for building a professional development plan that ensures employees are prepared and able to perform critical tasks in times of uncertainty while also being supported in their career trajectory. You’ll learn how to identify skills gaps, curate professional development resources, encourage cross-training, and align your development program around your nonprofit’s core values.

Remember, in the end, most nonprofit employees want to feel fulfilled and competent in what they do—they want to contribute as well as make a difference. These strategies can help you sustain your organization’s workforce and remain competitive in today’s ever-evolving employee marketplace.