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A Look at Nonprofit IT Staffing

Joe Brown ▪ May 28, 2010 ▪ 1 Comment

While generally working behind the scenes, information technology (IT) professionals have long been important to nonprofits as they strive to function as modern, efficient organizations. The importance of IT in most organizations continues to increase as nonprofits seek to fully utilize social media and online fundraising and as they explore the potential of technologies such as content management systems (CMS), contact relationship management (CRM) and software as a service (SaaS).

Last month, the annual conference of the Nonprofit Technology Network (NTEN) in Atlanta brought together more than 1,400 professionals with various roles in nonprofit IT. In advance of the conference, NTEN released its fourth annual IT Staffing and Spending Report. The survey offers a broad range of nonprofit IT management benchmarks drawn from the survey responses of more than 1,000 respondents representing a range of nonprofit organization types and sizes. In reviewing the report, I was particularly interested in staffing-related issues that emerged from the survey results.

What Matters Most?

Among the most interesting findings for me were respondents’ views of the most important factors to consider when hiring IT staff. The following chart summarizes their ratings of a variety of factors on a scale of one (not at all important) to five (extremely important).

Perhaps not surprisingly, past experience with technology was viewed as the most important factor. But, ranked right behind this were the “softer” factors of fit with organizational culture and attitude/personality. Possession of a degree/formal education was a distant last.

How’s the Market?

At times during the past two decades, IT professionals in various disciplines have been among the hottest employment commodities. Organizations in all market sectors often have been compelled to pay significant premiums relative to other staff and to take other steps to attract or retain qualified IT staff. In the NTEN survey, respondents were asked if they were currently utilizing any targeted recruiting or retention practices for IT professionals that are not being used for other staff positions. The majority (57%) indicated they were not. Among those organizations utilizing targeted approaches, the most common considerations included offering higher pay scales for IT staff, telecommuting opportunities, alternative/flexible work schedules and professional development opportunities.

A recent Chronicle of Philanthropy article painted a picture of an even softer market for IT professionals, suggesting that nonprofit organizations nationwide seeking to hire IT staff are encountering a more than adequate supply of qualified candidates — and a surplus of overqualified individuals. The Chronicle article points out a very important consideration given these market dynamics: nonprofit employers should “find workers who will serve their needs, embrace their missions — and also stay at their organizations when the job market thaws.” The concern is that as the job market improves, qualified or overqualified individuals who lack commitment to nonprofit missions might leave for higher salaries.

Your Next Move?

In addressing IT staffing needs, organizations should:

Carefully consider needs. Ensure the organization is able to explore and utilize current and emerging technologies.
Proceed with caution when hiring. Seek IT professionals who fit the organization’s culture and will remain committed to the organization and its mission as the job market improves.
Focus on development and retention. Identify and implement attractive and relatively low-cost practices including professional development and flexible work schedules.

What has your organization’s recent experience been with recruiting and retaining IT personnel? Does your organization have the talent needed to take advantage of the full potential of today’s technologies?

This post originally appeared on the Mission Connected Blog on April 27, 2010.

photo credit: KaVass

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San Diego Nonprofit Human Resources Management Symposium

Joe Brown ▪ May 27, 2010 ▪ 0 Comments

California, here I come!

I’m excited about participating in the San Diego Nonprofit Human Resources Management Symposium on Wednesday, June 16th, 2010. The event is sponsored by the Institute for Nonprofit Education and Research, part of the University of San Diego‘s School of Leadership and Education Sciences, and will take place on the USD campus.

Nonprofit Employment Trends

I look forward to participating in a panel discussion framed around the results of the recently completed 2010 Nonprofit Employment Trends Survey. This survey, conducted jointly by the Caster Family Center for Nonprofit and Philanthropic Research and Nonprofit HR Solutions, examines the employment practices of over 500 nonprofit organizations nationwide. Our discussion will focus on key findings including staff size and projected growth for 2010-2011, recruitment strategies and budgeting, key staffing challenges, and staffing resource management.

The Path to Pay for Performance

Following the panel discussion, I am conducting a seminar which will guide organizations in preparing for, developing, implementing, and maintaining effective, performance-based salary programs. We will examine the rationales, prerequisites, steps, and tools for a successful program, and participants will have the opportunity to ask questions about implementing pay for performance in their own organization.

Update: Click here to view the presentation

Other panelists and presenters at the symposium include:

Lisa Brown Morton, Nonprofit HR Solutions
Laura Gassner Otting, Nonprofit Professionals Advisory Group
Emily Davis, EDA Consulting and YNPN San Diego
Christopher Olmsted, Barker, Olmsted, and Barnier
Ann Shankin, Nonprofits’ Insurance Alliance of California
Karen Kramer Horning, NextLevel HR
Sherri Petro, VPI Strategies

Click here for more information and to register for the symposium.

I hope to see you there!

PS: Nonprofit HR Solutions is also the force behind the 2010 Nonprofit Human Resources Conference in Washington, DC this October. I look forward to attending and presenting there as well.

Photo credit: SD Dirk

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NYC Nonprofit Jobs 5/23/10

Joe Brown ▪ May 23, 2010 ▪ 0 Comments

Much like the occasional baseball game, last week’s scheduled edition of this weekly feature fell victim to a rain delay! So in a bit of a double-header, this week’s roundup of interesting nonprofit sector job openings in and around New York City from my Twitter stream, clients, network, and other sources not only includes a baker’s dozen of individual job openings, but also spotlights six major nonprofits in the city who are currently recruiting for multiple positions.
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Development in Demand: Challenges For Fundraising Professionals & Employers

Joe Brown ▪ May 20, 2010 ▪ 1 Comment

For the vast majority of the country’s more than 1.2 million registered 501(c)(3) organizations, the development function and fundraising professionals have always been of critical importance.

Today, while the profession itself faces challenges on a number of fronts, organizations face rising demand for qualified development professionals, the need to maximize their return on investment in fundraising staff and pressure to intensify efforts to attract and retain successful fundraisers.

The Landscape

Recent years reflect significant expansion of the nonprofit sector with the number of registered 501(c)(3) organizations increasing by 90% from 2006 to 2009. Given the current economic climate, these organizations are competing for fewer charitable dollars as individual, corporate and foundation giving have declined. According to a study released last month by the Association of Fundraising Professionals, 57% of American and Canadian nonprofits received less or the same giving dollars in 2009 compared to 2008.

While most organizations are, at best, cautiously optimistic that the economy will improve in 2010, it is reasonable to assume that charitable giving will lag behind any economic improvement. Foundation giving, in particular, is expected to remain flat in 2010 and improve only slightly in 2011 according to a recent Foundation Center report. Government funding for many organizations, particularly at the state level, has also significantly declined. Completing the perfect storm, the recession has led to increased demand for services from many nonprofits.

Changing Field

As if the economic landscape wasn’t challenging enough, fundraising professionals also increasingly find themselves in need of broader skill sets. A recent Chronicle of Philanthropy article summarizes the views of executive recruiters and fundraising experts who say that people skills alone no longer make for a successful fundraiser. Instead, emerging trends will create demand for development professionals who also possess entrepreneurial ability and spirit, who have cross-cultural and generational knowledge and who are strategic, analytical and technologically savvy.

Demand Rises

All of these forces combine to increase the demand for qualified fundraising professionals, and the job market for such positions appears to be on the rebound at least in some markets. The Association for Fundraising Professionals reports that listed job openings for fundraisers have increased every month since January and are now at November 2007 (pre-recession) levels. The job market is expected to continue to loosen especially for seasoned, broadly skilled development pros with a track record of success.

It Takes Money…

While development professionals are essential to a nonprofit’s survival, each fundraising position hired represents a significant organizational investment. The following table details the current median base salary among all organizations nationwide according to salary.com:

According to survey results released earlier this month by the Association of Fundraising Professionals, the median salary for all fundraisers nationwide was $66,000 in 2009, an increase of 3.9% from 2008. The survey found that highest salaries were paid to development professionals working for consulting firms, with a median salary of $80,000. Among charitable organizations, the highest median salary levels were found among fundraisers for educational institutions ($71,200), hospitals and medical centers ($71,000) and other health organizations ($67,000).

None of these figures include the additional expenses related to any bonus or incentive compensation, statutory and other benefits, and taxes.

Keeping Finders

As with any position, turnover brings even higher costs. Penelope Burk, a Chicago-based fundraising consultant, estimates it costs 65% to 83% of a fundraiser’s annual salary to replace him or her. In a presentation at the Association for Fundraising Professional’s annual meeting last week, she also agreed that turnover among fundraisers will increase as the economy improves previewing findings from recent research that suggest 48% of the 1,200 development professionals she surveyed would leave their current jobs for higher pay.

Ms. Burke reasons that this finding may provide an argument for organizations to increase rewards for top-performing fundraisers, but she also suggests other strategies for their retention including increasing their managerial responsibilities, creating succession plans and offering more flexibility and other non-monetary benefits.

In light of the economic and charitable giving climate, the changing nature of the development profession, and the need to compete for qualified talent:

What demands face your organization’s fundraising function and professionals?
Have your organization’s development staffing levels or needs changed?
What is your organization doing to attract and retain high-performing fundraisers?

A version of this post originally appeared on the Mission Connected Blog on April 20, 2010.

photo credit: nDevilTV

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The Nonprofit Version of Y2K?

Joe Brown ▪ May 14, 2010 ▪ 2 Comments

Do you remember Friday, December 31st, 1999? I do. I remember rushing to backup all of my business and personal data to CD-ROMs. I remember wondering just how fast and how far the market for COBOL programmers was going to fall. I remember losing count of how many times I heard Prince‘s 1999. I remember staying in that night to watch CNN, wondering if the anticipated global computer meltdown was going to occur (and feeling, I admit, just a bit of a letdown when it didn’t).

Over ten years later, heading into this mid-Spring weekend, I find myself experiencing a bit of déjà vu. If you are at all involved in the nonprofit world, you probably know by now that this Monday, May 17th, marks a significant deadline for nonprofit organizations nationwide. Under the provisions of the Pension Protection Act of 2006, any organization that has not filed its annual tax form with the IRS for at least one of the past three years by that date will lose its tax-exempt status. The 2006 law actually only changes the game for organizations with annual revenue below $25,000, which have for decades been exempt from filing requirements. For larger organizations, the filing requirement has not changed.

How hard could it be?

If no action is taken, more than 365,000 nonprofits will lose their tax exemption — along with their ability to accept tax-deductible donations and receive foundation grants. But if this fate befalls an organization, it means that at least one of the following statements are true of its leaders:
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Come Together? Right Now? A Discussion of Strategic Alliances and Partnerships

Joe Brown ▪ May 12, 2010 ▪ 0 Comments

On Monday, I had the opportunity to attend a highly informative and engaging forum which brought together government and nonprofit representatives to discuss the topic of strategic alliances and partnerships among nonprofit organizations. While the discussion focused on New York State’s nonprofit sector, the challenges, considerations, and ideas discussed are applicable to organizations nationwide. In the absence of a video or audio recording of the session, I wanted to share this detailed recap and my impressions of the session.
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Mission Connected: Employee Handbooks

Joe Brown ▪ May 12, 2010 ▪ 0 Comments

My new post on the Mission Connected Blog, “What’s in Your Manual? Nonprofit Employee Handbooks“, summarizes general considerations for employee handbooks, details essential content and resources for creating a handbook, and highlights one important area your organization’s handbook might be missing.

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NYC Nonprofit Jobs 5/8/10

Joe Brown ▪ May 8, 2010 ▪ 0 Comments

Here’s this week’s roundup of interesting nonprofit sector job openings in and around New York City from my Twitter stream, clients, network, and other sources.
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Salary Ranges 101

Joe Brown ▪ May 6, 2010 ▪ 0 Comments

In a recent post, compensation consultant Ann Bares questions whether salary ranges, long a staple of compensation programs among America’s companies and organizations, are still a useful tool given the relatively slow pace of annual salary growth during the past two decades.

There is no question that administering salaries — and, in particular, differentiating rewards according to performance — is challenging in what I’ve long described as a “four percent world” (or, perhaps, for the past two years, a “zero to three percent world”). However, I believe that for the vast majority of nonprofit organizations, salary ranges remain an important and effective tool. This is especially true for growing nonprofits which find themselves adding staff and needing to ensure that salaries are equitable and competitive while simultaneously managing compensation costs.

A couple of years ago, I was retained by an organization in just that situation. The organization, which had been in existence for about 20 years, experienced significant growth through the previous decade, growing from fewer than 50 employees to more than 200. One of the problems the organization was experiencing was a high level of employee turnover, particularly among young, high-potential employees in their second and third years of employment. The organization’s management assumed this was related to compensation.

As I began to speak with employees and managers, I found that there was, in fact, a connection to compensation. But, rather than dissatisfaction with the actual compensation levels, an issue that emerged was that employees had no sense of what future opportunities existed compensation-wise in their current jobs or in positions to which they might aspire. Employees also questioned whether there was consistency and equity in compensation levels and the linkage between pay and performance.

Salary ranges are the foundation of a compensation program that can address each of these concerns and can serve the needs of a nonprofit organization and its employees in a rational, straightforward and effective manner.
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