Have you noticed the constant turnover in our charitable sector? Postings and head hunter calls have become a daily occurrence. Even more concerning is the number of positions that are posted several times over a short period.
Given that Canada’s charitable and nonprofit sector is “9.8% of the Canadian workforce” (Stats Can, 2024), this turnover requires some serious consideration. Think about the related expenses each time a turnover occurs: costs for posting or hiring recruitment companies, lost revenue during the search process, onboarding costs, and the margin of time for current donors to build trust with a new ED or major gifts officer. According to a 2024 report published by Human Resource Director, the average cost for a staff turnover is $30,000+.
Charities are no longer a volunteer-run system, and staffing has become an important piece of the budget and strategic plan for operational wellness. We need to treat team development with business model thinking, putting serious emphasis on retention, staff wellness, and career development.
Emerging nonprofit leaders are increasingly asking themselves, “is the job for me?” Despite loving the cause, they often don’t feel valued. In this scenario, the organizations that are considering professional development, professional and organizational mentoring systems, and succession planning strategies are the ones coming out ahead, meaning less turnover and therefore increased revenue and higher proceeds for the cause.
According to HBR, 85% of Fortune 500 companies have a succession planning system in place, and almost all of the top 100 have an active plan reviewed systematically. If the nonprofit sector takes that success rate as our best practice example, then we need to ensure we have all the components of succession planning in our strategic plans.
What does a succession plan include?
It’s not just the idea of “promoting from within,” but rather an active monthly, bi-annual and annual review of the plan and the team. And, this isn’t just for large charities, but also for small 2-3 person shops.
Growing team member skillsets and providing funds for them to grow and learn industry strengths is a “must” in budget planning. It’s a small cost for significant gain. In addition, looking at the project work on a regular basis and providing leadership opportunities will enhance staff skills through hands-on experience.
Basically, every time leadership and boards look at their strategic plan—or even the next big campaign or fundraising effort—we should be considering mid-level and newer staff to see who would gain from a growth opportunity, and how leadership can best support them. (This can also apply to committed volunteers who know and love the organization and cause.)
We need to look at our teams’ strengths, but also the gaps, to determine the professional development that will most effectively strengthen the organization.
I recently came across an engineering website that, on their career page, listed the prime reasons for working for them as: community impact and company culture. They listed benefits such as an in-office gym, bike parking, collaborative technology, professional development, community initiatives and social events. All of these align with Gen Y and Gen Z values; career development, job satisfaction and work-life balance.
If the charitable sector wants to compete for excellent staff and excellent ROI, these must be components of our “company culture.”
We know that we strive for impact, based on our cause and mission. Where we need to step it up is career development opportunities, succession planning from within as an “always first” strategy, and active, regular discussion on who and how we build our teams and boards.
Including staff retention in planning and budgeting will identify it as a strategic priority, helping to create a positive atmosphere and organizational culture of wellness and stability.
Sherry Schaefer is the Director of Emerging Leaders at Chavender, with 35 years of experience in healthcare and fund development. Her programs at Chavender include Next Level Talent, Professional Mentoring, and Focus Coaching. Her heart- work is building a thriving philanthropic community and supporting and mentoring those who are doing the frontline work for our charitable and NFP sector. She is also a collaborator and co-author on the 2024 newly published book, Embracing Ambition: Empowering Women to Step up, Be Seen and Lead by Jenny Mitchell.
