When it comes to hiring, nonprofits are still the top dog, but the competition is heating up, according to the latest edition of the Nonprofit Employment Practices Survey. Results of the 10th annual Nonprofit Employment Practices Survey indicate that while nonprofits have been hiring more aggressively than for-profits for the last several years and will continue to do so in 2017, the gap is now narrowing. According to the survey, 50 percent of nonprofits plan to hire in 2017 (down seven percentage points from 2016), while the corporate hiring outlook is the best it has been in a decade, with 40 percent of for-profit companies planning to hire in 2017 (up four percentage points from 2016 according to the CareerBuilder’s Annual Job Forecast). This narrowing gap is due at least in part to the growth of social enterprise and purpose-driven business.
However, most nonprofits are not improving their talent and culture practices in order to thrive in the face of this growing competition. 64 percent of nonprofits surveyed reported they do not have a formal recruitment strategy, 81 percent reported they do not have a formal retention strategy and 52 percent reported they do not have a formal diversity, equity and inclusion (DEI) strategy.
The complete results of the 2017 Nonprofit Employment Practices Survey can be viewed here.
As corporate hiring improves, it will be harder for nonprofits to hold on to their top performers, but most nonprofits have not put a formal retention strategy or program in place, and a majority have no plans to create one this year. Is your non-profit prepared to compete with for-profit competitors in the race for talent?
Key Findings from the 2017 survey include:
Nonprofit vs. For-Profit Projected Growth
- Nonprofits have been hiring more aggressively than for-profits for the last several years, but the gap is now narrowing.
- 50 percent of nonprofits plan to hire in 2017 (down seven percentage points from 2016).
- In comparison, 40 percent of for-profit companies plan to hire in 2017 (up four percentage points from 2016).
Recruitment
- 64 percent of nonprofits do not have a formal recruitment strategy.
- 56 percent of nonprofits have no plans to change the way they source for talent in 2017.
- 28 percent of nonprofits cite an inability to hire qualified staff within a limited budget as their top staffing challenge in 2017. This was the most commonly cited top challenge among nonprofits surveyed.
Retention
- 81 percent of nonprofits do not have a formal retention strategy.
- 27 percent of nonprofits have plans to develop a formal retention strategy in 2017.
- 11 percent of nonprofits said they expected their total turnover rate to increase in 2017, while 59 percent said they expected it to stay the same.
Diversity, Equity and Inclusion
- 52 percent of nonprofits do not have a diversity, equity and inclusion strategy or program in place.
- 42 percent of nonprofits name balancing ethnic/cultural diversity as their greatest diversity challenge, while 35 percent list retaining staff under the age of 30.
MVP
Megan Van Petten
CEO & President
Van Petten Group, Inc.