Staff Retention in Non Profit Organizations Essay

In the globalized and changed competitive business world, it is important responsibility to deal with employee turnover for any organization. Effective and efficient management of employee turnover is an essential task to achieve the organizational overhead goals. Significant amount of research has been undertaken to understand the major causes of employee's turnover and retentions mechanisms that organizations should develop, especially in the field of healthcare.

• The level of burnout is high. Those who enter the non-profit labor force with a specific role and objective in mind do so with great purpose. This great purpose often places a heavy weight on the assume the responsibility of those doing the work.

When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be between 30% (the figure used by the American Management Association) to upwards of 150% of the employees' remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale. The true cost of turnover is going to depend on a number of variable including ease or difficulty in filling the position and the nature of the job itself.

Working in nonprofit is gratifying and at the same time challenging. As an administrator for a major nonprofit organization, I have witness first-hand the effects of staff retention and excessive turnover and its effects on the quality of service provided to clients and the increase in the cost of recruitment. However, recent data support how nonprofits continue to experience growth, while the private sector remains stagnant. Per the nonprofit quarterly the steady growth of nonprofit was estimated at 14.4 million people in 2013. In 2003, nonprofit organizations paid an estimated $425 billion in wages. Ten years later, in 2013, total nonprofit wages had risen to $634 billion. This increase in paid wages represents a growth of 49.2 percent (Nonprofit

When an employee leaves the company of his or her own volition, it is called voluntary turnover. In this essay, I will discuss why voluntary turnover is a problem for many organisations and how to retain employees.

Successful management of a not-for-profit organization requires providing high-quality service, but at the same time, careful administration - to reduce expenses and automate processes are ongoing requirements. Each type of not-for-profit organization has unique management needs. For example:

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

I have worked for a non-profit agency for approximately 4 years. The agency is funded by the state of Ohio under the Department of Children and Families. In 2012, the agency was expanded and now consists of approximately 55 employees. Employees range from an Executive Director, seven Supervisors, and other support staff. Prior to 2012 the agency served only up to 200 children and families and the expansion created no cap to referrals that now average upwards of 600 children. With this expansion came many new employees and supervisory changes to the agency.

The Non-profit has been in existence for 43 years. It was organized in response to a rift between the original organization and some of its members. Over the years, the organization has not been able to adapt and develop sufficient training and development within the new organization to foster growth and maturity in members or develop capable leaders from within the organization. The morale and level of viable activity has experienced times of growth and decline due to the change in leadership and lack of clear vision and mission.

There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’

The most frequent causes of litigation against non-profits and their directors and officers are cases concerning employment, such as discrimination, wrongful termination, and other civil rights. This has been true in the past, and continues to be true even as the business world changes. In fact, it is this changing environment

In any organization high employee turnover is not cost effective and is time consuming. The credibility of the organization might also be affected if employees do not stay for a good period of time working for them. A good reason employees may resign is being motivated by higher pay. No matter how much someone enjoys working for that organization if better pay is offered somewhere else they will more likely will end up leaving. Every organization must maintain salary competitive by offering comparable pay and benefit packages. In addition to traditional “pay and benefit” compensation, some companies also offer extra perks such as on-site gym, day care, discounts on services or traveling and employee assistance programs. Another reason why employees might resign is that they do not feel engaged. Employees like having job satisfaction, challenges, new duties, recognition, receive positive feedback, new goals and job advancements. If employees feel bored they might leave the organization. High-performing workers need to feel that they are being challenged and are moving forward in terms of professional growth and development. Another reason of turnovers is that employees are poorly managed. A bad boss can make employees feel miserable; if their immediate supervisor creates an uncomfortable work environment they may consider leaving. Employees who are well compensated, challenged, engaged and properly managed will likely be

Today’s best companies understand the real key to maintaining a world-class workforce is not just to hire the best employees, but to keep them once they are hired. Retaining progressive

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at