Employee Retention – Nonprofit Catalog
Maintaining a strong employee base is critical to keeping your business or nonprofit strong. Your business’s hard-working, dedicated employees are your greatest assets, and ideally, you would want them to stay with your company for a long time. After all, the hiring and training processes are expensive and time-consuming, so high employee retention is essential.
What is employee retention?
Employee retention is the ability of an organization, such as a business or nonprofit, to keep its employees year after year. Maintaining high levels of employee retention means that your organization is doing an effective job of appealing to employees’ needs and interests.
In order to calculate your employee retention rate, subtract the total number of employees who left your organization from your total number of employees. Then, divide by your total number of employees and multiply by 100.
Benefits of a strong employee retention rate
You may be thinking: what’s the point of having a high employee retention rate? After all, you could simply fill those vacant roles again. However, a high employee retention rate has many benefits for your organization, including the following:
- Reduced costs for your organization. Hiring new employees is expensive, and so is training them. While a new employee is in training, they will take time to become familiar with your systems and procedures, making your organization temporarily less efficient. By retaining your employees, you won’t have to spend as much time and money on the hiring and training process.
- Stronger employee skillset and greater organizational efficiency. Having been trained in your organization’s systems and after fulfilling their job duties for years, your employees will be more experienced in their roles. They will have spent their time practicing the skills they need to succeed at their job. Retaining these employees will make your organization as a whole more effective and efficient.
- Greater employee morale. No employees want to work at an organization where their coworkers leave on a regular basis. Knowing that your company has a high employee retention rate will lower your employees’ stress, increase their morale, and reduce instability at your workplace.
Having a strong employee retention rate may even set your organization apart from others. This means that if you do have to hire new employees, more people will be happy to work for you and your applicant pool will be much larger.
How to strengthen your employee retention rate
Consider using these employee retention strategies at your organization:
Help employees set professional goals.
Professional goals for an employee might look like achieving a promotion or advancing their skills. When you help employees set meaningful goals, it gives them something to strive for and look forward to. Make sure that the goals are aligned with your organization’s overarching objectives. Also, schedule follow-up meetings to check progress, offer additional guidance when needed, and let the employee weigh in on the process.
Offer ongoing opportunities for training and professional development.
When employees stagnate or don’t feel like they’re growing, they may seek employment elsewhere to help facilitate that growth. According to NXUnite, offering ongoing opportunities for training and professional development helps employees avoid burnout and advance in their career path. These opportunities could be in the form of online training modules, professional coaching, or mentorship.
For example, let’s say you’re looking to offer more professional development opportunities for your nonprofit’s employees. You can consider hosting seminars or a lunch-and-learn program to help employees brush up on their fundraising-related skills.
Allow employees to attend relevant conferences.
Conferences can be an excellent opportunity to learn more about industry trends, pick up new skills, and make connections with fellow industry professionals. Relevant nonprofit conferences can be found easily through web searches or on social media platforms like LinkedIn. If you’re worried about travel costs, you can search for virtual or hybrid conferences.
Offer workplace giving opportunities.
Corporate social responsibility has become increasingly important, and workplace giving is integral to that. In fact, 71% of surveyed employees say it is imperative or very important to them to work at a place where the culture is supportive of giving and volunteering. Having programs in place that allow your employees to give back is a great way to retain employees. You can even decide which programs to implement based on your employees’ preferences.
Ask for and incorporate employee feedback.
Employees want to feel like their voices are heard and that their opinions matter. Listening to them will help you improve their experience and may give you insight into issues you didn’t realize existed. Send out regular employee surveys and make a plan to incorporate their input.
Nonprofit Catalog – Read up on more nonprofit essentials by exploring our Nonprofit Catalog.
The Top 5 Benefits of Workplace Giving for Companies – Learn more about workplace giving and how it can help you retain employees.
Fundraising Professional Development: Top Tips & Resources – Not sure where to start with professional development? Read this article for more advice.