Non-Profits Can Survive Funding Cut-Backs

Child care centers, programs for troubled youth andneeds a pay raise. Turnover is not about money...most
developmentally disabled adults, senior citizens centers,of the time at least. Salary increases, as nice as they
counseling for troubled families, substance abusers;are, have a very short term effect on employee
these are examples of human services funded bymorale and performance.
government at the federal, state, county or local levels.2. Secondly, organizational leaders need to change
The troublesome path that the U.S. economy has beentheir attitude about turnover; rather than seeing it as an
on during the past year has resulted in governmentunavoidable cost of doing business, they need to look
cut-backs in support of human service organizations.at turnover as something that they can impact. Even
At the same time, the non-profit providers of thesewhen there is only a small improvement, the positive
services face escalating costs for labor, energy andchange in organizational operations can be remarkable.
supplies. This scenario puts many human service3. Say, "thank you"; acknowledge hard work.
leaders on the hot seat in terms of figuring out a waySometimes a simple word of appreciation is energizing.
to survive the financial squeeze.4. Look for non-financial but concrete ways to reward
There's a way out however, that will allow thegood work. Have an employee who's child is in a play
organization not only to survive, but to thrive. Theat school? Send her home two hours early so she can
solution is not magic and may involve re-designing aattend.
number of the systems whose inertia keep these5. Engage all staff with the mission of your non-profit.
organizations running from one day to the next. TheShow them repeatedly how their job relates to the
solution to non-profit survival in this troubled economy ismission and what they can do to make their job even
for organizations to reduce staff turnover and do somore important to overall success.
dramatically.6. Make sure everyone is involved in a development
Staff turnover is very expensive; some say as high asplan that makes the organization stronger in the future
$7500 per incident for entry level staff. That meansand helps them to grow too; their appreciation for the
that if you have 100 staff and a 20% annual turnovergrowth opportunities you have given them will pay off
rate your cost of turnover could easily be $150000.in outstanding loyalty.
That's a lot of money that could be redirected toward7. Encourage positive relationships amongst staff. Give
program improvement. What are the costs? Extrathem opportunities to really get to know each other
hours allocated to human resource operations; hugeand appreciate each other's skills. Staff who enjoy
overtime expenses; increased costs of advertising,working together are less likely to leave.
screening, background checks, physical exams,8. Train supervisors. People don't leave jobs, they
orientation. It means that experienced staff will beleave supervisors. Make sure supervisors have the
unavailable to take advantage of growth opportunitiespeople skills to be successful.
and revenue may be lost under fee for service9. Make good hire decisions. Involve potential work
contracts.team colleagues in the decision. See how the applicant
Staff retention on the other hand results in measurableresponds to what is positive as well as what is
program changes that make the organization stronger:negative about the organization.
reduction in critical incidents and medication errors; less10. Finally, everyone needs to know that there is a
time explaining program errors to licensing people;campaign to reduce turnover. Openly discuss how it
more complete program documentation; service planswill be done, what the targets are and how the
that are prepared, revised and delivered in a timely andsavings will be redirected.. Make it everyone's
competent way; goals that are actually achieved andcampaign.
most importantly, clients with smiles on their facesThere are many other suggestions. No doubt
because they have the opportunity to work with staffeveryone who hears about the campaign will have an
whom they know and trust.idea; that's a good thing. Don't wait to begin until you
Staff turnover is just too expensive; it raises expenseshave thought of everything possible. Begin now, with
and lowers income. You must do something about it!the ideas that you can implement today. Every day
But what? Here are ten steps you, as a non-profityou wait the difference between income and expense
leader can take right away to reduce staff turnover.becomes larger; you can't afford to wait.
1. Get rid of the idea that to reduce turnover, everyone