Retaining Employees in Nonprofit Organizations

RETAINING EMPLOYEES IN NONPROFIT ORGANIZATIONS
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(30th April, 2011)
Abstract
This research paper critically looks at the strategies of retaining Employees in nonprofit organizations. It first defines the nonprofit organization as an organization that in any case does not distribute its surplus funds to shareholders, but in place use them to assist in attaining it objectives. The main objective of nonprofit organizations is giving support to some issues or matters of private interests or of public concern for non-commercial purposes. In the recent times, nonprofit organizations have the ability of attaining their corporate targets in an effective manner by the use of some methods that were developed in for-profit enterprises. Some of these strategies include; have an internal management that is far much effective, (Pynes, 2008).
The paper found that after considering all other factors for having effective employees, like recruitment, it is good for the nonprofit organizations to keep their employee for longer time. Some of the strategies they have for doing that include: monitoring of job satisfaction, mentoring programs, training, payment consideration, positive culture, good communication, internal referrals, growth opportunities, fostering trust and confidence in senior management team, job rotation, coaching, employees should be valued, and flexible job environment. The paper concluded that, the best retention techniques are the ways of retaining employees in a nonprofit organization.
Introduction
Retention of employees is much challenging not only in Non profit organization but in almost all industries. Most employees keep on changing their current employer due to competition in the non profit organizations. It is also evident that there are few people who have been trained in that profession. Hence, due to few people trained to work in that industry there is high competition by organizations to employ the few available. This has made it really challenging to retain the employees for long in an organization They might be organized as nonprofit corporations or even as a trust, cooperative entities. There are a times when nonprofit organizations are called foundations, as well as endowments that have large stock funds. There are similar organizations that are called supporting organizations, which operates just like a foundation, but the difference is just that, there administration is very complicated, highly tax favored, and public charities that they finance ought to have a specially determined relation. Foundations provide funds to other nonprofit organizations, as well as fellowships and their grants to participants are direct. Nevertheless, foundation is also a name that can be used by any nonprofit organization. In Germanic laws, nonprofit organizations are basically voluntary associations; despite the fact that some have corporate structure. The primary goal is to give support to some issues or matters of private interests or of public concern for non-commercial purposes; such as the arts, education, charities, religion, politics, research or some other endeavors of the community, (Yazinski, 2009).
Though they are in a position of earning profits, nonprofit organizations have been accurately described as being surplus. As an effect, such earnings have to be retained in the organization for its expansion as well as future plans. Due to this retention, NPOs’ profits do not benefit any individual, or even any stakeholders. However, there are some NPOs which put significant amounts of money or funds into hiring and rewarding their internal corporate leaders, personnel at the middle management level, as well as workers. On the other hand, there are these which employ unpaid volunteers, as well as executives work without any compensation.
There has been consensus since 1980s that nonprofit organizations have the ability of attaining their corporate targets in an effective manner by the use of some methods that were developed in for-profit enterprises. Some of these strategies include; have an internal management that is far much effective, ensuring results accountability. Others include monitoring the performances of different departments, or projects with the aim of bettering the benefits from their capital and workers. This in one way or the other requires satisfied management, which in turn starts with the mission of the organization.
Employee retention methods
Most employees including NPOs are faced with the problem of whether investing money sand time in fine-tuning their strategies for recruitment, or paying extra attention to the retention of talents that they already have. However, it has been proved that, employee recruitment is very expensive, stressful as well as time consuming. However, once the organization has good talents or staff, it will be good if it can retain it. In looking for strategies to implement in the employee retention, it is good for the NPO executive management to recognize the fact that, factors that attract an individual to a particular employment opportunity, is in most cases far much different from what keeps the same individual to that particular job he/she was attracted to. Before implementing any retention strategy, the management should look at employee complaints.
Employee retention techniques in NPOs
After getting efficient and effective staff and looked upon employee complains the organization has to figure out on the strategies of keeping employees. Basically, the organization should:
Monitoring of job satisfaction
It is good for the executive management to keep on checking their employees from time to time. This will provide the management with the information on whether employees are enjoying their work apart from feeling supported. This should include the board monitoring of executives. It is good to consider periodical surveys a long with conversations with the aim of eliciting information about different issues that are related to job satisfaction. It is not good for the management to make employees believe that every thing will be fixed, instead, “Design and use an effective personnel evaluation system that promotes the type of performance your organization” (Yazinski, 2009).
Mentoring programs
Mentoring programs have to be introduced in the organization. It has been known that, integrated mentoring program, along with goal oriented feedback systems, have the ability of providing structured mechanisms that are far much useful for the development of very strong relationships between employee and the management staff. This in most cases has been looked upon as the foundation of employee retention as well as growth. Organizations having mentoring programs pair a more experienced employee in a certain field, with someone viewed as being less experienced in the same field. This should be done with the target of developing specific competencies, as well as the provision of feedback. These mentoring programs have the capability of acting like a design of individualized career development plan.
Training
The organization can enhance career development and training. It should be realized that, training employees is among the ways of reinforcing employees’ sense of value. It is just through training that employer’s assist employees attain their goals and ensure that they do have a solid understanding of their job requirements. On the other hand, development refers to learning opportunities designed for helping employees grow as well as evolve future vision, (Perry, 2009).
Payment Consideration
Payment consideration is another strategy. This is the first area that most employees do complain about; as a result, they always look for changes in most cases. It is good for the organization management to foster a work environment in which employs feel comfortable when asking for a pay rise. The organization should always be revising their payment structure every now and then to ensure that they adjust it according to the external factors like labor markets, cost of living among other things, and internal factors like the ability of the company to pay, labor laws among other factors as well. In the hotel industry, both financial and non financial methods are employed. On top of good salaries, the organization should also consider internal pay equity. In most cases, employees are more concerned with salary compression. This deals with salary differences between new and long term employees. If the organization has an average of 4% annual pay increase rate for its employees. Employees feel that, new comers are better paid, and in most nonprofit organization, they are. The organization should offer competitive salaries, profits sharing, bonus, pension along with health plans, as well as tuition reimbursement. In general, these sent powerful messages to employees concerning their significance fin the organiza...