Based on the 2011 Nonprofit Employment Trends Survey, the sector finds its entry to mid-level positions from inside the organization but often goes outside the organization for senior and executive level positions. Is this the best approach and what does survey data reveal about sector talent management programs?

1. Talent Management and Recruitment: What the Sector is Doing Wrong
and How to Fix It
Dennis Sawyers & Heather Carpenter
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3. Today’s Speakers
Heather Carpenter
Dennis Sawyers Research Associate,
Senior HR Consultant, Caster Family Center for
Nonprofit HR Solutions Nonprofit Research,
University of San Diego
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4. Talent Management &
Recruitment
What the Sector is doing wrong and how to fix it.
March 16, 2011
Speakers: Dennis Sawyers, Senior HR Consultant, Nonprofit HR Solutions
& Heather Carpenter, Research Assistant, Caster Family Center for
Nonprofit Research

5. CONTENTS
03/16/2011
 2011 Nonprofit Employment Trends Survey Key
Findings.
Talent Management & Recruitment
 What These Results Mean for Your Organization
 Taking a Different Approach as We Go Forward
5

6. 2011 NONPROFIT EMPLOYMENT
TRENDS SURVEY
03/16/2011
KEY FINDINGS
1. ALTHOUGH THE HR FUNCTION IS VIEWED AS CRITICAL IT
STILL REMAINS A LOW PRIORITY FOR MOST ORGANIZATIONS.
Talent Management & Recruitment
2. NEARLY A QUARTER OF NONPROFITS LOST STAFF IN 2010.
3. WHEN NONPROFITS LAY OFF STAFF, 81% REPORT USING
EXISTING STAFF TO FULFILL THE DUTIES OF THE ELIMINATED
POSITION.
4. TURNOVER REMAINS LOW. ECONOMIC IMPROVEMENTS ARE
NOT BEING REALIZED AS QUICKLY AS ANTICIPATED.
5. IT’S STILL “WHO YOU KNOW” WHICH WORKS THE BEST WHEN
IT COMES TO NONPROFIT RECRUITMENT.
6

7. KEY FINDING 1
HR IS CRITICAL, BUT NOT A PRIORITY
03/16/2011
 84% of respondents agreed that the HR function is
critical to their organization’s ability to fulfill its
mission.
Talent Management & Recruitment
 86% of respondents noted that HR practices play a
role in achieving the mission.
 Over half of respondents (59%) agreed that their
organization’s mission informs decisions regarding
HR matters such as employee training and pay.
 However, more than half (52%) of respondents
have the responsibilities of HR mingled with other
functions – no dedicated HR professional.
7

8. KEY FINDING 2: NEARLY A QUARTER OF
NONPROFITS LOST STAFF IN 2010
03/16/2011
 24% Saw a Decrease in Staff in 2010
 Better than predicted
Talent Management & Recruitment
 Median number of positions eliminated – 3
 Predictions look good for 2011
 Majority of nonprofits do not plan to freeze hiring,
reduce staff, or eliminate positions in 2011.
 60% plan to hire or create new positions in 2011
8
Source: 2011 Nonprofit Employment Trends Survey

9. KEY FINDING 3: USING EXISTING STAFF TO FULFILL
THE DUTIES OF THE ELIMINATED POSITION
03/16/2011
 81% use existing staff to fulfill duties
 Leads to potential burnout
Talent Management & Recruitment
 New Programs Staffing Strategies
Staffing Strategies Used to Support New
Programs and/or Initiatives
Use volunteers and interns 2%
Use current staff 55%
Hire temporary staff through a third party
0.2%
vendor/agency
Hire temporary staff directly on our payroll 3%
Hire new staff (full-time or part-time) 36%
Contract with consultants 4%
0% 10% 20% 30% 40% 50% 60% 9
Source: 2011 Nonprofit Employment Trends Survey

10. KEY FINDING 4: TURNOVER REMAINS LOW
03/16/2011
 Nonprofits in this survey reported a turnover rate of
13 percent.
Talent Management & Recruitment
 56% anticipate their turnover rate will stay the same in
2011 as the previous year and 24% anticipate a lower
turnover rate than the previous year
 Reasons for anticipated higher turnover in 2011
 Voluntary terminations/resignations
 Involuntary terminations/resignations
 Retirement
10
Source: 2011 Nonprofit Employment Trends Survey

11. Key Finding 5: It’s still “who you know”
when it comes to nonprofit recruitment
03/16/2011
 Top 5 Recruitment Advertising Strategies
 Formal network of colleagues/nonprofits
Talent Management & Recruitment
 Informal network of colleagues/friends
 Newspaper (local online edition)
 CraigsList
 Newspaper (local print edition)
 Personal Network Sources
Formal network of
50% colleagues/nonprofits
50% Informal network of
colleagues/friends
11
Source: 2011 Nonprofit Employment Trends Survey

12. 03/16/2011
Talent Management & Recruitment
WHAT DO THESE FINDINGS
POTENTIALLY MEAN FOR YOUR
ORGANIZATION?
12

13. KEY FINDING 1
FAILURE TO PRIORITIZE HR LIMITS RESULTS AND
INCREASES RISK AND COSTS
03/16/2011
 Limits the advancement of the organization’s mission
 Limits the development of teams and individuals
 Limits strategic perspective
Talent Management & Recruitment
 Increases exposure to legal risk
 Increases exposure to compliance infractions
 Potential increased costs
 According to the U.S. Department of Labor the cost of replacing an employee
can be as great as 33.3% of a new hire’s annual salary.
 Example: Average salary $50,000 x 33.3% = $16,650 (for a poor hiring
decision).
 Costs that add up to that $16,650 (for a poor hiring decision):
 Percentage of your salary/benefits (or recruiter’s, hiring manager, etc.)
 Re-advertising costs or possible placement fees.
 Training costs
 Employee morale
 Unemployment costs 13
 Hassle for you!

14. KEY FINDING 2
THERE IS LIGHT AT THE END OF THE TUNNEL
03/16/2011
 We have possibly seen the worst of the economic
down-turn.
Talent Management & Recruitment
 Opportunity to backfill and/or create new positions
is in the not-so-distant future.
 However, emerging challenges with public sector
funding pose a threat to what looks like a possible
strong come-back for the non-profit sector.
14

15. KEY FINDING 3
THE POTENTIAL FOR BURN-OUT IS HIGH
03/16/2011
 The overwhelming majority indicate that they are
stretching the capacity of current staff -- how far
Talent Management & Recruitment
can we stretch before the band breaks or we realize
diminishing returns?
 Are we lean and mean or unprepared to deliver
against critical objectives?
15

16. KEY FINDING 4
PEOPLE ARE STAYING WITH A “SURE THING”
03/16/2011
 The instability of the economy has produced
commitment to the familiar – risk aversion
Talent Management & Recruitment
 Employees are not necessarily staying out of
commitment – it’s a survival tactic
 The few who identify seemingly good external
opportunities leap for them – abandoning ship
 Some whom the economy has rendered unready
for retirement have decided to move on despite
losses – possibly already burned out
16

17. KEY FINDING 5
OVER-RELIANCE ON NETWORKS MAY BE
PRESENTING CHALLENGES
03/16/2011
 Though formal and informal networks yield significant results,
diversity challenges give pause for concern.
While diversity is regarded as important, almost half of those
Talent Management & Recruitment

who indicate challenges say that the greatest diversity
challenge is balancing ethnic diversity – attracting qualified
people of color.
 Dr. Ivan Misner is the Founder & Chairman of BNI, as well as
a New York Times best-selling author says, “It is human
nature to congregate with people that are very much like us.
People tend to cluster together based on education, age, race,
professional status, etc.. The bottom line is that we tend to
hang out with people who have similar experiences or
perspectives as ours.”
17

18. 03/16/2011 Talent Management & Recruitment
SO WHAT DO WE NEED TO DO
DIFFERENTLY?
18

19. RESPONSE TO KEY FINDING 1
MAKE THE CASE FOR HUMAN RESOURCE
MANAGEMENT
03/16/2011
 A necessary partnership for advancing responsible
business practice.
Talent Management & Recruitment
 Compliance
 Risk Management
 A strategic partnership committed to results
 Talent Management
 Total Rewards
 Planning and Monitoring
 A trusted advisor
 HR and Business Strategy
 Employee Relations
19

20. KEY FINDINGS 2 & 3
FULLY CONSIDER THE BENEFIT OF A BROADER
SCOPE OF INTERIM STAFFING STRATEGIES
03/16/2011
Volunteers Interns Consultants
No salary costs Low to no salary costs No regular
employment costs
Talent Management & Recruitment
Committed to your Eager to learn and Possible opportunity
mission add value to negotiate rates
Eager to learn and Possible future Experienced, high-
add value candidate pool functioning, highly
skilled talent
Possible future Possible benefit
candidate pool beyond functional
expertise
20

21. KEY FINDING 4
OPENLY COMMUNICATE AND CELEBRATE,
CELEBRATE, CELEBRATE
03/16/2011
 In times of uncertainty, clear and timely communications are critical
for employee satisfaction.
 “People may take a job for more money, but they often leave it for
Talent Management & Recruitment
more recognition.”
“There has been overwhelming evidence in recent years that
recognizing employees when they do good work is not just the right
thing to do, but it also is the smart thing to do if you are interested in
obtaining desired results in your organization.”
Bob Nelson
 “People often say that motivation doesn't last. Well, neither does
bathing – that's why we recommend it daily."
Zig Ziglar
21

22. KEY FINDING 5
THERE IS A WEALTH OF OPPORTUNITIES TO
EFFECTIVELY MARKET JOB OPENINGS
03/16/2011
Talent Management & Recruitment
22

23. THERE ARE SIGNIFICANT
OPPORTUNITIES TO
LEVERAGE SOCIAL
03/16/2011
NETWORKING SOURCES
Talent Management & Recruitment
23

24. NONPROFIT HR SOLUTIONS
 About us
03/16/2011
 Nonprofit HR Solutions is the nation's only full-service consulting firm
dedicated exclusively to meeting the human resources needs of nonprofit
organizations. Since 2000, Nonprofit HR Solutions has worked
exclusively with the nonprofit sector, generating results for organizations
Talent Management & Recruitment
supporting advocacy, health and human services, arts and culture,
education, the environment, faith-based missions and more.
For more information on Nonprofit HR Solutions, please call
202.785.2060 or visit www.nonprofithr.com.
 Our services
 HR Consulting & Outsourcing
 Executive Search
 Staffing
 The HR Cooperative
 Nonprofit Human Resources Conference (Oct 9-11, 2011)
 Nonprofit HR Symposia Series (Spring 2011)
24

25. 03/16/2011
Talent Management & Recruitment
TALENT MANAGEMENT &
RECRUITMENT
25 www.nonprofithr.com
dsawyers@nonprofithr.com
hcarpenter@sandiego.edu

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