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Employee Retention Issues in Non-profit Organizations
Non-profit organizations face many of the same employee retention concerns as profit-driven enterprises. With profitability no longer a factor in measuring the success or effectiveness of the organization, the non-profit does use different employee management strategies and techniques. Human resources management strategies used in nonprofit firms often do mirror those used in their for-profit counterparts. For example, motivation, employee engagement, training and professional development are all major issues for human resources managers no matter what their sector. The literature on human resources management in non-profit organizations is extensive in general, but few studies have applied qualitative methods to assess the actual HRM practices used in nonprofits. Similarly, few studies have used qualitative methods to determine HRM and employee perceptions of employee training and development programs. Existing studies on employee retention, development, and training in non-profit organizations focus mainly on mission statements, and less on the specific tools and strategies used by human resources managers.
Mission Critical
There is even some tension in the literature regarding the efficacy of mission statement in employee retention strategies, driving HRM research more towards an investigation of the actual training and development tools used to empower and retain top talent. For example, Brown & Yoshioka (2003) found that even when employees remained motivated and engaged with an organization they were ethically aligned with, “dissatisfaction with pay tended to override employee's mission attachment as explanation of why they may leave the organization,” (p. 5). In other words, HRM strategies do need to recognize the importance of extrinsic motivation, providing employees with rewards, bonuses, salaries, and opportunities for advancement. Using a similar regression analysis design as in the Brown & Yoshioka (2003) study, Kim & Lee (2007) found that “pay and career advancement overrode the role of mission attachment in employee retention,” (p. 227). Further research by Brown, Yoshioka & Muñoz (2004) showed that mission was critical for employee recruitment and retention, but that other intrinsic factors—especially leadership and communication styles—proved more important when it came to long-term retention.
Research on volunteers in nonprofit organizations allow for the control of pay as a variable in employee retention, engagement, and decision to remain with the organization. For example, Garner & Garner (2010) found that structural support and “opportunities to connect with other people” were crucial factors in unpaid employee retention (p. 813). Yet few other studies have revealed what nonprofit organizations are actually doing to retain top talent, develop high performers, and ensure their long-term success. One survey of 79 nonprofits, plus seven additional case studies, revealed that nonprofit organizations do not even use strategic human resources management (Akingbola, 2007). The lack of insight into what human resources managers are actually doing in nonprofit organizations to retain employees and provide them with opportunities for development and leadership motivates this current research.
The Current Study
Qualitative methods allow for rich and nuanced insight into actual human resources practices. Rather than assess the quantitative outcomes of a specific HRM strategy on a non-profit’s performance, this research will show what strategies are or are not being used. The results will be useful in guiding human resources managers in the nonprofit sector to more effective means of retaining and developing employees. Nonprofit organizations do not measure their success quantitatively other than by specific outcomes measures, which is why qualitative methods will reveal the most important information.
This research will rely on both a case study and focus groups with human resources managers in the nonprofit sector. The case study will help trace the impact of HRM strategies within a single organization, and will include semi-structured interviews with several employees. Ethnographic research methods will be used to conduct the focus groups, and the researcher will volunteer with the organization during this time to gather in-depth information and observations. Data will be collected without the use of video recording devices, and the explicit assent of all employees in the organization will be received prior to commencing data collection. Focus groups will expand the sample population to include members of the nonprofit sector in nine different countries. Using a diverse sample will increase the reliability and generalizability of the results. All ethical guidelines for social science research will be followed, including the affirmation of participant anonymity and confidentiality of information shared in the focus groups. Demographic data, including the amount of time an employee has been with the organization, will be collected in the interests of finding a possible link between demographic factors and the types of human resources strategies used, and the researcher will also take into account the mission statement of the organization. Coding methods will be used during data analysis for the focus groups.
Differing substantially from prior research, this qualitative study will illuminate the actual practices of human resources managers in the nonprofit sector. The research will show not what managers believe they are doing to retain and develop employees, but what types of training and development opportunities actually exist, how accessible they are to employees, and how employees perceive those opportunities. Focus groups will also allow for the collection of perceptions and impressions that will invariably aid human resources managers and future researchers in improving the overall effectiveness of nonprofit organizations.








References
Akinbola, K. (2007). Strategy and HRM in nonprofit organizations. The International Journal of Human Resource Management 17(10): 1707-1725.
Brown, W.A. & Yoshioka, C.F. (2003). Mission attachment and satisfaction as factors in employee retention. Nonprofit Management and Leadership 14(1): 5-18.
Brown, W.A., Yoshioka, C.F. & Muñoz, P. (2004). Organizational mission as a core dimension in employee retention. Journal of Park & Recreation Administration 22(2): 29-43.
Garner, J.T. & Garner, L.T. (2010). Volunteering an opinion. Nonprofit and Voluntary Sector Quarterly 40(5): 813-828.
Kim, S.E. & Lee, J.W. (2007). Is mission attachment an effective management tool for employee retention? Review of Public Personnel Administration 27(3): 227-248.