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2015 Nonprofit Employment Practices Survey

The nonprofit HR www.nonprofithr.com Improve Group HR THAT HELPS NONPROFIT EMPLOYMENT 2015 PRACTICES SURVEYTM The national Nonprofit Employment Practices Survey has been conducted through a partnership between Nonprofit HR and the Improve Group. NONPROFITS ARE PROJECTING GROWTH IN 2015 THAT COULD OUTPACE THE CORPORATE SECTOR. Nonprofits are reporting a growing trend of increasing in staff size 75% Change in Staff Size In 2015... (2008-2014) 100% 50% 49% Increased 33% No change 50% 25% 36% 18% Decreased 0% 2008 2009 2010 2011 2012 2013 2014 Yes Maybe No 0%- nonprofits anticipate creating new positions. for-profit companies plan to hire.* Create new positions 50% 22% 29% Eliminate positions 7% 74% 19% Freeze hiring 7% 85% 9% *Career Builder (2014). 2015 U.S. jobs forecast. Gradually reduce staff 3% 89% 8% http://careerbuldercommunications.com/pdf/careerbulder-q1-2015-forecast.pdf Nonprofit Sector 3rd largest employer in U.S. -2 million nonprofit organizations Employ 10.7 million people Produce revenue in excess of D $1.9 trillion Greatest growth expected in the area of Direct Services. 46% Direct Services Program Management/Support Expected growth in Direct Services indicates a 33% Fundraising/Development demand for the services 30% nonprofits provide, Education/Community Outreach while Finance/Administration/ 24% Operations growth indicates Marketing/Communications/ Public Relations more investments in infrastructure and HR. 22% Finance/Administration/ Operations 17% Member/Constituent Services 11% Government Relations/Affairs/ Advocacy 2015 2014 2013 2012 0% 10% 20% 30% 40% 50% AS NONPROFITS CONTINUE TO PROJECT GROWTH, THEY LACK FORMAL STRATEGIES TO ATTRACT TALENT. Nonprofits report that “hiring" is the biggest staffing challenge. in A majority of nonprofits do not invest the necessary time and effort to ensure that they are recruiting the best talent possible. 52% do NOT have a formal recruitment STRATEGY Have a formal recruitment strategy? Yes Don't Know No Large Nonprofit 65% 33% Although it is a common practice in many industries, an overreliance on Medium Nonprofit 53% 47% one's network when searching for Small Nonprofit 35% 64% prospective talent can negatively impact diversity within an 91% of nonprofits reported "using a network of friends and colleagues as one of their primary recruiting sources." organization 67% do NOT have a formal recruitment BUDGET Formal Recruitment Budget 24 The noticeable lack of key elements ALL $5,500 - strategy and budget- for recruiting talent remains as 59% of nonprofits Large Nonprofit $27,500 report having no plans to change their strategy. Medium Nonprofit $5,000 Small Nonprofit $1,500 68% of nonprofits do NOT have a social media recruitment strategy Have a social media recruitment strategy? While formal social recruitment Yes Don't know No strategy is still emerging practice, 2015 28% 68% 2015 saw more than triple the rate 2014 8% 89% of use from 2014, indicating that trend is moving quickly toward formalized strategic use. Nonprofits are continuing their use of social media for recruitment. 70% Without formal strategies in place, Linkedin in it is probable that nonprofits are not 53% using social media to its full potential Facebook fF for recruitment. 126% Twitter 2015 2014 2013 2012 0% 25% 50% 75% 100% RETENTION CHALLENGES ARE EXACERBATED AS THE NONPROFIT SECTOR REBOUNDS FROM THE RECESSION. 19% 16% TOTAL An increase in the voluntary Turnover 17% turnover rate signals employees' increased confidence in the job VOLUNTARY 14% market. 10% Turnover 11% 2014 2013 | 2012 0% 5% 10% 15% 20% 25% Inability to pay competitively, inability to promote staff, and excessive workloads are the greatest retention challenges faced by nonprofits. Functional Areas Hardest to Retain 38% Direct Services 27% 20% 19% 18% Program Management/Support 11% Finance/Admin/Operations Z Excessive workloads/ insufficient staff 10% Fundraising/Development 1 Inability to pay 2 Inability to competitively promote 7% Other resources Most candidates for senior/executive level positions come from other nonprofits Senior/Executive Level Vacancies filled... Employees who see no opportunity for advancement are less likely to From other nonprofit organization 61% stay with the organization. Many Promoted from within 21% nonprofits miss good opportunities to From outside nonprofit sector 18% promote their own staff. Growing trend to hire new staff when new programs and/or initiatives are created. Use Current Staff 57% 50% Large- and medium-sized organizations more frequently find 41% staff for new programs compared to Hire New Staff 29% small organizations. 2010 2011 2012 2013 2014 2015 ABOUT THE SURVEY The nonprofit sector is an often overlooked and important economic driver with its 10.7 million employees making up just over 10% of the nation's private workforce. The 2015 national Nonprofit Employment Practices SurveyTM is intended to provide a snapshot of current employment practices and discuss the economic trends of employment practices in the nonprofit sector. This report, which has been produced annually by Nonprofit HR since 2007, includes responses from 362 nonprofits nationwide. In this year's survey, as in years past, researchers collected information on nonprofit staffing, recruitment, and retention practices, focusing on three key areas: Staff Size and Projected Growth, Recruitment Strategies and Budgeting, and Staffing Challenges The survey included a mix of multiple choice, rating scale, and short-answer questions to gain context on their current practices and the employment trends they see in the nonprofit sector. We thank all of the respondents for their participation in this study. Nonprofit HR is the nation's only human resources firm that works exclusively with nonprofit organizations. Since 2000, the firm has provided human resources consulting and talent acquisition services for organizations supporting advocacy, health and human services, arts and culture, education, the environment, the faith community and more. Nonprofit HR has offices in Washington D.C. and Chicago. © Copyright 2015 | Nonprofit HR The Nonprofit Employment Practices Survey is trademarked by Nonprofit HR LLC.

2015 Nonprofit Employment Practices Survey

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This infographic highlights the results of the 2015 Nonprofit Employment Practices Survey. Nonprofit HR has ran this survey annually for the last 7 years and this year one of the highlighted findings ...

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