Employees in Nonprofit Organization Are Not Prepared

Employees in nonprofit organization are not prepared to make financial and investing decision to prepare them for retirement. This has been observed in many NGOs especially in the life of the former employees once they reach the retirement age. During the lifetime of these individuals in the organizations, they are observed not to take the issue of investment in businesses and other forms of financially inclined ventures like the bonds market and the shares and exchange markets.

There is an evident trend of many employees of NGOs never willing to retire and stay at home since they do not have businesses to attend to. Most would rather be posted as ambassadors of various organizations, or turn to consultancy or opening and running other NGOs once they reach the retirement age.

The strategic challenge that leads to the trend of many of such employees in NGOs not being ready to make investments has to do with various factors; One major factor is the fact that their nature of work is much based on social investment where the benefit that they derive joy in is focused on helping the people. This means that they have little experience in how to make business or cash profit maximization in any situation, but are well equipped with skills of making social benefit in any situation. This leaves them with the dilemma of delving into the competitive business world. It is these factors that must be looked into and a way of reversing them charted out so as to enable the nonprofit organizations employees to be able to have business investments.

The other factor is purely based on the job security of tenure. Even in the face economic downturn and the recession, the NGOs were little known to be lay-offs. There is that sense of job security and assurance of having your job once you do your work right within the NGOs. This them makes the employees reluctant in investing in alternative areas as a means of securing their future incase they are retrenched even before the retirement age.

The strategic problem that this lack of investment therefore brings is the fact that there will be a larger number of Americans relying on the retirement savings that they made during the employment duration. However, the tricky part with this is that statistics indicate that many Americans save way too less than what they require after retirement. Indeed, Don Taylor (2011) indicates that two thirds of Americans don't save enough for their retirement period. This prompted the employers to have automatic enrolment programs for employees where their retirement savings are automatically deducted and remitted to their special accounts meant for this fund.

The best way to research this phenomenon is to have a representative sample of NGOs in a representative state and use it as the research focus group. There can then be interviews carried out among employees who are five years to retirement age and have the data of the level of preparedness for retirement and the investment levels that they have made. From these, it will be possible to tell what percent have considered investment as a means of preparation for retirement.