Talent Management and Recruitment

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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?

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Talent Management and Recruitment

  1. 1. Talent Management and Recruitment: What the Sector is Doing Wrong and How to Fix It Dennis Sawyers & Heather Carpenter Special Thanks To Our Sponsors
  2. 2. Helping ordinary people raise extraordinary amounts for nonprofits is all we do, and we love it. A Proud Sponsor of NonprofitWebinars.com
  3. 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 Hosting: Sam Frank, Synthesis Partnership Assisting with chat questions: April Hunt, Nonprofit Webinars
  4. 4. Talent Management &RecruitmentWhat the Sector is doing wrong and how to fix it.March 16, 2011Speakers: Dennis Sawyers, Senior HR Consultant, Nonprofit HR Solutions& Heather Carpenter, Research Assistant, Caster Family Center forNonprofit Research
  5. 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. 6. 2011 NONPROFIT EMPLOYMENTTRENDS SURVEY 03/16/2011KEY 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. 7. KEY FINDING 1HR 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. 8. KEY FINDING 2: NEARLY A QUARTER OFNONPROFITS 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. 9. KEY FINDING 3: USING EXISTING STAFF TO FULFILLTHE 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. 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. 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. 12. 03/16/2011 Talent Management & Recruitment WHAT DO THESE FINDINGS POTENTIALLY MEAN FOR YOUR ORGANIZATION?12
  13. 13. KEY FINDING 1FAILURE TO PRIORITIZE HR LIMITS RESULTS ANDINCREASES 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. 14. KEY FINDING 2THERE 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. 15. KEY FINDING 3THE 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. 16. KEY FINDING 4PEOPLE 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. 17. KEY FINDING 5OVER-RELIANCE ON NETWORKS MAY BEPRESENTING 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. 18. 03/16/2011 Talent Management & Recruitment SO WHAT DO WE NEED TO DO DIFFERENTLY? 18
  19. 19. RESPONSE TO KEY FINDING 1MAKE THE CASE FOR HUMAN RESOURCEMANAGEMENT 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. 20. KEY FINDINGS 2 & 3FULLY CONSIDER THE BENEFIT OF A BROADERSCOPE OF INTERIM STAFFING STRATEGIES 03/16/2011Volunteers Interns ConsultantsNo salary costs Low to no salary costs No regular employment costs Talent Management & RecruitmentCommitted to your Eager to learn and Possible opportunitymission add value to negotiate ratesEager to learn and Possible future Experienced, high-add value candidate pool functioning, highly skilled talentPossible future Possible benefitcandidate pool beyond functional expertise 20
  21. 21. KEY FINDING 4OPENLY 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 doesnt last. Well, neither does bathing – thats why we recommend it daily." Zig Ziglar 21
  22. 22. KEY FINDING 5THERE IS A WEALTH OF OPPORTUNITIES TOEFFECTIVELY MARKET JOB OPENINGS 03/16/2011 Talent Management & Recruitment 22
  23. 23. THERE ARE SIGNIFICANTOPPORTUNITIES TOLEVERAGE SOCIAL 03/16/2011NETWORKING SOURCES Talent Management & Recruitment 23
  24. 24. NONPROFIT HR SOLUTIONS About us 03/16/2011  Nonprofit HR Solutions is the nations 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. 25. 03/16/2011 Talent Management & Recruitment TALENT MANAGEMENT & RECRUITMENT25 www.nonprofithr.com dsawyers@nonprofithr.com hcarpenter@sandiego.edu
  26. 26. Find the listings for our current season of webinars and register at NonprofitWebinars.com Chris Dumas Chris@NonprofitWebinars.com 707-812-1234 Special Thanks To Our Sponsors

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