Vitality A supportive culture will be essential to strengthen a struggling workforce. Nonprofits need to maintain a strong workforce to be effective, but that hasn’t been easy given the sector’s Case Study financial struggles. While nonprofit employment grew 4% between 2021 and 2022 — faster than the private sector’s A service-based organization was challenged 1.5% growth during the same period — 20% of nonprofit in providing benefits that lined up with 6 This has employees reported living paycheck to paycheck. for-profit companies in the area. Beyond the contributed to higher rates of burnout and more people mission, the organization needed to be leaving nonprofit employment for better-paying industries. smarter on the benefits they offered. Using Nonprofit respondents of the HUB survey acknowledged HUB's Workforce Persona Analysis™, they there is work to be done when it comes to recruitment identified a few subgroups of employees that and retention, with 47% of U.S. respondents and 56% of Canadian respondents identifying it as a key priority that they could focus on. Improving their specific needs to be addressed in 2025. employee experience by adding low cost and Organizations must also contend with reputational no-cost access benefits immediately created challenges brought on by a recent increase in goodwill. Solving certain challenges — such as employment-related lawsuits. Discrimination charges backup childcare — and enhancing PTO/leave against employers overall were up 10% in 2023 compared programs for grandparents bolstered the with 2022, and the Equal Employment Opportunity reasons they stayed in the organization. Commission has stepped up its enforcement of protections 7 against anti-discrimination employment laws. Nonprofits are particularly vulnerable to these claims, depending on the sector they serve, which can cause increasing costs. According to the HUB survey, more serious reputational damage, hurting their ability to attract than half of all nonprofit respondents are using benefits and retain staff. Volunteer participation, which has already analytics to streamline costs, improve individual outcomes been on a steady decline, can be negatively affected as and keep their healthcare plan solvent. well.8 Providing access to personal insurance and financial To counter these challenges, organizations must foster wellness tools can also be a differentiator for employers to a people-centric culture that protects its staff and address a major component of employee stress, enhance volunteers. This can include developing a compelling recruitment and increase productivity. Employee Value Proposition (EVP) and total rewards strategy to generate excitement within the organization where everyone feels not only valued but also like they are 6. Nonprofit Quarterly, “Health of the Nonprofit Sector: The Latest contributing to the greater cause. Data,” February 27, 2024. 7. U.S. Equal Employment Opportunity Commission, “2023 Annual Additionally, utilizing employee benefits analytics can Performance Report,” February 23, 2024. provide important insights into what benefits employees 8. University of Maryland Do Good Institute, “New Research Report Examines Recent Declines in Giving and Volunteering in America,” want or need, such as mental health support, without November 1, 2023. 4