Dive Brief:
- When it comes to projected job growth, things are looking up for the nonprofit HR sector. But even with that good news, serious talent challenges remain, according to a survey from Nonprofit HR, an HR consulting firm that works exclusively with nonprofit employers.
- According to Nonprofit HR's ninth annual Nonprofit Employment Practices Survey, 57% of nonprofits anticipate hiring at least one new employee in 2016 (a 7% increase over 2015), compared to only 36% of for-profit companies who plan to hire. Other good news from the survey is 34% of nonprofit employers increased staff size in 2015.
- Despite that positive trend, the survey found many nonprofits still do not have formal recruitment and retention strategies (and necessary budgets in place), so they continue to lose the battle for top talent they need to keep pace with that growth, the survey reported.
Dive Insight:
In recruitment challenges, 33% of of nonprofits cite the inability to hire qualified staff within a limited budget as a top hurdle in 2016. More than 54% don't have a formal recruitment strategy and 71% do not have a formal recruitment budget.
Increased competition for talent surfaced in the survey. For example, retaining staff under age 30 continues to be the greatest diversity challenge in the nonprofit sector. Also, the nonprofit sector attrition rate remains stable from last year at 19%.
"The last few years this survey has validated the strength of the nonprofit sector as it continues to grow, outpacing the corporate sector and holding its spot as the third largest employer in the country," said Lisa Brown Morton, Nonprofit HR's CEO. But as the sector continues to grow and job seekers have more options beyond it, the lack of formal recruitment and retention strategies will more acutely affect nonprofit employers.
