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Retaining employees at your nonprofit saves time and money– but are you doing it right?

Promoting your mission is the prime objective of a nonprofit organization.  But because we’re often so preoccupied with business strategies and marketing elements, employers tend to neglect one key internal variable—the importance of employee retention.

Losing an employee results in decreased productivity, lost revenue, and excess time spent rehiring and retraining replacements.  Since for-profit organizations often offer higher salaries, nonprofits must work twice as hard to actively and consistently engage their employees.

Rather than solely relying on typical motivational tools, such as office parties or bonuses, one must address the multitude of variables that could impact an employee’s job experience.

Here are 5 simple steps that can help increase retention rates.

1. Be clear during the recruitment process.  Before job candidates even get the job, specify what the expected responsibilities are and describe what the overall work atmosphere entails.  If someone knows exactly what they’re signing up for, the odds of them staying are significantly greater.
2. Create a 90 day plan.  Have a decisive evaluation plan, broken down into ongoing time frames.  Be sure to check in with new employees on a fairly regular basis in order to gage their strengths, weaknesses, and personalities.
3. Set realistic expectations.  While you’re aiming for a smaller turnover rate, don’t shoot for 0%.  Retain your strongest employees, but don’t be afraid to say goodbye to the weakest performers.  Remember, the goal is toretain the strongest team possible in order to effectively promote your mission.
4. Engage and interact with your employees.  Develop a good relationship with your employees.  Give your workers consistent feedback and don’t forget to commend them on their great job performances.  When employees feel engaged, they are likely to be more driven and committed to their organizations.
5. Play it safe—prepare for the worst.  Since some employee departures are inevitable, recognize potential skill loss.  Be sure to train invaluable skills to multiple employees so your organization doesn’t suffer if someone chooses to leave.  Make sure your staff is well-rounded and prepared for any unpredictable turnover.

Having good retention requires a multifaceted plan.  Retaining employees is a 365-day practice.  Through consistency and overall engagement, nonprofit employers can maintain a positive, reliable work environment for everyone.

This snowball effect of employee efficiency and happiness is imperative for a nonprofit’s mission advancement and maintaining high retention rates.

Learn more about retention challenges and solutions here.

How many jobs did your state create?

Stateline tells us in this infographic! Overall job growth surged in some states while remaining modest in others. But before you pack up and move to Texas or North Dakota, remember that overall job health is moving in the right direction. Tell us whether your organization has increased hiring on facebook.

May was another month of modest job growth as employers across the country added 175,000 jobs—in line with analyst predictions—showing continued signs of confidence in a renewing economy.

The unemployment rate rose to 7.6 as more job seekers renewed their job search. According to labor reports, about three-quarters of those who re-entered the job market were able to find jobs.

The modest 175,000 jobs employers added in May was the latest in a string of evidence that the economy may be poised for stronger and more rapid growth in coming months. Despite tax increases and government spending cuts, investors seemed pleased with the report and the Dow Jones industrial average swelled more than 200 points.

And although national job growth numbers are still weaker than desired, many analysts believe that the Federal Reserve will continue making bond purchases. These purchases are intended to stimulate economic and job growth for at least several more months.

The purchases have eased long-term loan rates and lifted stock prices.

Read more about Friday’s jobs report here.

While reducing employees hours can reduce payroll, it might increase your unemployment insurance payments too!

Rather than laying off workers, many employers over the past few years have turned to an alternative—reducing employees’ hours.  While not necessarily ideal, for many organizations and their employees this has been a more palatable option.

But what many employers don’t realize is that this may not yield the savings they anticipate.

Why? When an employer reduces an employee’s hours as a result of the organization’s needs, the employee could be eligible to collect partial unemployment benefits for the loss in wages.  And the state will include this in the chargeback liability attributed to the organization.

An employee is still eligible to collect partial unemployment benefits when:

• They are “underemployed” i.e. working part time through no fault of their own
• They must be ready, willing and able to work full time
• They have met the state’s minimum earnings or hours worked requirements

You should carefully weigh the consequences of reducing hours, laying off employees, and/or using contractors before making any decisions about staffing changes.  You will want to know what effect the unemployment claim charges may have on your organization’s rate.

UST members can contact their dedicated Workforce Solutions claim representative to discuss how these types of staffing changes can affect their claim experience.

The 2013 UST Member Satisfaction Survey finds UST Members happy with service and savings found at the Trust.

Santa Barbara, Calif.- The Unemployment Services Trust (UST) is pleased to announce that 93 percent of Trust participants report that they would recommend participation in UST to another nonprofit. Explained one respondent, UST provides “reliable and ‘understandable’ services and communication, and it makes financial sense [to join].”

Providing more than two thousand not-for-profit organizations with unemployment claims management and budgeting services, UST has been aiding 501(c)(3) agencies in reducing their overall unemployment costs for over three decades.

In fact, 78 percent of survey respondents ranked “saving money by no longer paying unemployment taxes” as a primary benefit of being a UST member, while 75 percent also felt that “having professional claims management services” was a “very important” part of the benefits to their organization.

And in an era in which live phone support has proven increasingly scarce, it was not surprising to find that 83 percent ranked the “UST customer support by phone” as a valuable resource. It seems that this support has proven effective, as the vast majority of respondents—over 95 percent—indicated that over the past year they have had no concerns about UST’s service or their concerns were adequately addressed (68.5% and 26.8%, respectively).

With the large majority of respondents in Finance, HR and Administration roles, the Member Satisfaction Survey is a high level overview used to assess recent service enhancements, determine areas for improvement, and enrich the member experience.

“We’re very excited to find that so many of this year’s survey participants are not only happy with their membership in the Trust, but that they feel confident in taking that a step further and would recommend the Trust to their peers,” said Donna Groh, Executive Director.

“To hear that such a large segment of our members are satisfied with their participation in the Trust is deeply gratifying,” agreed Adam Thorn, Director of Operations. “At UST we’re always working to improve our processes and make it even easier for members to lower the cost of unemployment and build a healthy reserve balance, so whenever we have the opportunity to get feedback from members about what could be done to improve the service we carefully consider it.”

Using previous surveys and other member feedback data, the Trust has introduced new processes and features that focus on further reducing unemployment claim liability. Recent enhancements have included a new online claims dashboard to view which former employees have filed for unemployment benefits, a more comprehensive and timely statement of account, and representation by an expert at all unemployment claims hearings.

“Some of our best new ideas have come from members,” Thorn added.

About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing 501(c)(3) organizations with a safe, cost-effective alternative to paying state unemployment taxes. Equifax Workforce Solutions (WS) is UST’s partner to provide members with claim administration, audits of state charges, and hearing representation if a member’s claims protest goes to court. They also provide educational seminars and training materials to UST member agencies throughout the year. Visit www.ChooseUST.org to learn more.

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Promoting from within can enhance internal productivity and increase external relations—if done right.

Truth be told, the process of hiring from within an organization is fairly common.  Having built up trust and demonstrated more competence than the average worker bee, many workers within your organization may appear more than ready for a higher authority position.

But just because your buzziest employees are great at what they do now, it does not mean that they possess the skills and desire to move up within your agency.

While an individual may excel at his or her current tasks, the leap from associate to manager, for example, can damage one’s professional career. For instance, if a promoting manager fails to analyze the key differences in position responsibilities, the promoted worker may be unprepared or unwilling to perform the newly assigned tasks.

Such confusion (and irritability, or push back in some cases) will cause a domino effect within your organization. If other employees either don’t respect their newly appointed superior, or don’t feel that their new superior is prepared for the increase in responsibility, they may develop lazy work habits and become resentful. And when work production decreases, relationships with outside sources—whether with donors or community liaisons—will inevitably suffer.

And without growing external support, your company’s mission will become much harder to advance.

Avoid promotion regrets. Take the time to properly and effectively assess your potential candidates.

Here are some guidelines to follow when considering promoting within:

• Coach your best workers. Mentor figures can help familiarize promotable employees with vital authoritative skills, so they can be groomed for future leadership roles.
• Define what characteristics you are looking for. Specify the requirements and expectations necessary for the promotion. You want to eliminate any confusion and vagueness.
• Constantly check in! After assigning new responsibilities or challenges, be sure to track the worker’s progress and adaptability rate. This will allow you to continue to measure their potential learning capabilities.
• Give others a chance. While you may originally have someone in mind for the new role, don’t rule out other prospective employees. Certain workers may thrive under the pressure and exceed your expectations.
• Take baby steps. Give your hardest workers added responsibilities over an extended period of time. The last thing you want is to overwhelm your employee and give them a role they aren’t yet conditioned to handle.

Hiring within is an extensive process, but produces worthwhile results when proper precautions are taken. Be responsible and prepare. Set the example. So your company’s future leaders can one day do the same.

Learn more ways you can turn a good worker into a strong leader here.

Even before you finish posting your most recent job opening, resumes start pouring in. Eager candidates are ready to do whatever it is your organization needs done.

Unfortunately eagerness alone doesn’t fit the bill—candidates need the right combination of skills and experience too.

Keeping a few things in mind when screening that burgeoning stack can keep it from becoming a people-eating monolithic pile of epic proportions. These four tips will help.

1. Know exactly what criteria you’re reading through resumes for.  Even if you have more than one opening at your agency, it’s important that you become familiar with the position description and what your hiring managers are looking for in each position.
2. Create a consistent evaluation process, and always stick to it. Whether you decide to create an Excel spreadsheet that lists every resume alphabetically, or organize resumes into folders of “yes,” “no,” and “maybe,” based on how they meet criteria, it’s important that you follow the same process every time. And although it may sound trivial, keeping your resume screening process consistent can help you breeze through the process, gracefully decline those who applied and aren’t qualified, and get to the next step.
3. Do a quick sort. Your first run through a resume pile shouldn’t have you hiring private investigators or even Googling a candidate’s name. As you read through resumes the first time, keep in mind what’s most important to the hiring manager and in the posted job description. If a candidate makes it past this stage then conduct a more in-depth review of their resume, check out their online presence, and schedule a phone screening.
4. Don’t forget that somewhere in one of these piles is your next great employee. As time-consuming as resume screening can be, somewhere in one of those piles is your organization’s next hire. All of your hard work will pay off when they bring in new donors, strengthen community relations, or streamline your most antiquated process.

How do you make sure that reading resumes doesn’t put a damper on your day? Tell us on Facebook!

For the past 4 years, Florida has been indebted to the Title XII federal loan program, due to the economic crisis in 2008.  Along with 35 other states, Florida’s Unemployment Compensation Trust Fund became insolvent as the economy suffered.  While this state trust fund was designed to be self-sustaining, most states had no other option but to take out an extensive loan—coupling a devastatingly shorter and smaller supply of unemployment benefits with a huge outstanding balance owed to the federal governments.

But, Florida was able to make their final loan payment of $9.2 million on Tuesday, May 21^st.

Using more than $3.1 billion from employer tax collections and $360 million from an issued Federal Unemployment Tax Act (FUTA) tax credit, Florida became the 14^th state to successfully pay off their debt.  The remaining states still possess a cumulative outstanding balance of over $21 billion, with an added interest of over $464 million—all of which must be paid off in order to restore their Trust Fund balance.

With their balance finally at $0, and their unemployment rate down to 7.2 percent, Florida is now able to focus their energy on job creation and economic improvement strategies.

While there was no specified payment schedule for the loan, Florida has progressed a lot quicker than some of the larger states.  22 states still remain in debt, but Florida paves the way for economic salvation.  And provides a sense of hope to those seeking employment.

Want to learn more about the Florida federal loan pay-off from the Tampa Bay Times?  Read this overview.

Compare what your state debt balance is here.

Do they all have updated interview training?

As we learned yesterday, interviews are one of the most effective ways to determine if a potential candidate will fit well within your organization.

In fact, according to research published by DDI International, new hires who reported their hiring manager and staff interviews to be effective were 85% confident in their decision to accept the job, 42% more likely to be planning on staying with the organization, and 39% more likely to be highly engaged!

Luckily, interviewing is a trainable skill.

By providing proper education and coaching at your agency, hiring managers are able to better, more accurately present the job, your company, and how an applicant would interact with their team. And an accurate representation of the position and your organization can lower first year attrition rates, improve employee morale, and boost outlook.

To review your interview training requirements, consider the following:

• Does your organization provide a question template before the interview to help the interviewer get answers to specific, relevant questions?
• Does your organization provide a template for after the interview that helps interviewers assess the candidate with as little bias as possible?
• Do your hiring managers and interviewing staff know which questions could be deemed illegal by federal nondiscrimination standards?
• How often are interviewing staff at your organization required to refresh their interview skills?
• Do hiring managers within each department have a consistent means of scoring and evaluating applicants?
• Are hiring managers at your organization skilled at coaxing useful answers from applicants, or do they often accept vague, generic answers?
• Does the hiring process at your organization turn applicants off? Is it too long, complicated or demanding?
• How well do interviewers at your organization listen to responses?

For organizations that need to update their interview training, a quick internet search can reveal hundreds of specialized services catering to many different job requirements, complimentary tricks and tips, and many other resources.

Tell us: How often does your organization evaluate your interview and hiring procedures?

Have you ever hired someone, only to turn around days or weeks later and wonder, “What in the world was I thinking?” Or worse, have you ever hired someone and then heard that employees are asking the same question?

According to global research about hiring trends published by Development Dimensions International (DDI), half of new employees report that they are experiencing buyer’s remorse after accepting a recent job offer.* But new employees aren’t the only ones rethinking their employment.

Many employers surveyed also reported that they are questioning whether they have made wise hiring decisions, with 1-in-8 new workers employed during a 12-month period having proved to be a “bad hire.”

When staffing directors were asked what the top reasons for hiring mistakes were, nearly one-third of respondents blamed an over-reliance on hiring manager evaluations, while only 21 percent pointed to candidates that had oversold their skills.

And because interviews are one of the best ways to determine how a potential candidate will perform in the role, bad interviews can be poisonous. But only 1-in-3 staffing directors feel that their hiring managers are skilled at conducting high-quality interviews, or are satisfied with their company’s training program for interviewers.

In better news, further research revealed that just over half of all new hires would rate themselves as confident in their decision. Delving deeper, many of those who reported a lack of confidence found that the hiring process had failed to paint a realistic picture of the job, department and company they are now employed by.

On the other hand, in companies where the hiring process yielded an accurate portrayal of the job, company, and department, new hires were far more confident in their decisions, less likely to immediately begin scanning job boards, and highly engaged with the job and their workplace.

So what’s the best way for a nonprofit to address these concerns?

Well-trained hiring managers, realistic portrayals of what the position is really like, and good interviews!

Read more about the research by DDI International at SHRM. And come back tomorrow for Part 2: Hiring Tips for Managers and Making Your Interviews Work.