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Tag Archive for 'human resources'

The Power of Why

“Why?”

“Because I said so.”

This exchange, perhaps a staple of parent/child relationships, has no place in management. In fact, communicating to employees the why of their work — the context, value, and relevance of their work — is vital to both training efforts and effective coaching. Further, recent research, including a study conducted in a nonprofit fundraising environment, suggests that employees who know how their work positively impacts others are more productive than those who don’t.
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Rutgers IEL: Compensation in the Nonprofit Sector

It was my pleasure to present this week at Rutgers Business School as part of the Institute for Ethical Leadership’s 2010 Nonprofit Leadership Certificate Program. In addition to leading a plenary session on the use of social media and social networking for nonprofit organizations, I had the chance to address both the executive and emerging leaders tracks on compensation in the nonprofit sector.

The two presentations overlap in conveying information about the past, present, and future of nonprofit pay. The first presentation, for the emerging leaders, also offers a brief overview of executive compensation in the sector, as well as a primer on pay for performance approaches. The second, for established executives, provides recommendations on ways to enhance their organizations’ pay and performance management practices.

Emerging Leaders

Executives

Each of the conversations branched out in several interesting discussions, some of which I’ve touched upon in previous posts, and all of which were worthy of further discussion.  You may find the following related posts of interest:

Are Your Executive Compensation Bases Covered?
The Buck Stops Where?
Development in Demand: Challenges for Fundraising Professionals and Employers
Executive Compensation at Boys & Girls Clubs of America: A Closer Look
Human Resources Maturity
A Look at Nonprofit IT Staffing
The Path to Pay for Performance
Paying Attention to Turnover in the Nonprofit Sector
Salary Ranges 101

Please feel free to share the presentations and posts with your colleagues and, as always, share your comments and questions!

2010 Nonprofit Human Resources Conference: Pay for Today (and Tomorrow)

Lately, it seems that any sentence containing the words “nonprofit” and “compensation” is related to the scrutiny of pay provided to the presidents and other top executives of organizations. However, for most nonprofit organizations, far more compensation dollars are paid to the broader, non-executive employee population.
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Paying Attention to Turnover in the Nonprofit Sector

“Where are they going to go?”

“They’re lucky to have a job.”

These are, unfortunately, actual statements I’ve heard in the past year from nonprofit managers, offered as rationales for not taking steps to advance human resources practices within their organizations. While there is no question both the economic downturn and its effect on labor markets have limited employment opportunities for many nonprofit employees, it has by no means brought the market to a halt, and staff turnover and retention continue to be important issues on which nonprofit employers should focus.
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A Look at Nonprofit IT Staffing

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.

Creative Commons License photo credit: KaVass

San Diego Nonprofit Human Resources Management Symposium

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:

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 Creative Commons License

Mission Connected: Employee Handbooks

execSearches.com

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.

Salary Ranges 101

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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Mission Connected: Employee Turnover

execSearches.com

My new post on the Mission Connected Blog, “Paying Attention to Turnover in the Nonprofit Sector“, takes a look at the prevalence of, causes of, and potential responses to the costly issue of employee turnover among nonprofit organizations.

Nonprofit Blog Carnival: How to Be A Great Nonprofit Employer

I’m honored that my recent post “How to Be A Great Nonprofit Employer” was among the seven selected as the best nonprofit posts of the month in the April Nonprofit Blog Carnival, hosted by Jeff Brooks on his Future Fundraising Now blog.