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Nonstop Blog:

Nonprofits Have Some Advantages in Non-Monetary Compensation for Employees

employee-benefits.jpgPhoto: omnihealth.com

Recruitment and retention are always top of mind for nonprofit executives, and rightfully so. According the Bureau of Labor Statistics, nonprofits employ 10% of the US working population with a large percentage in health and social services. But attracting – and retaining – top talent continues to be a challenge, especially staying competitive with compensation packages.

But of late, more information and research is shedding light on non-monetary benefits that influence a person’s choice of workplace. For example, last May Fast Company posted this article about the misconceptions of working for a nonprofit and why it’s a great option for self-driven, tech-savvy millennials.

Along those lines, last week the Harvard Business Review wrote on three things employers can do to motivate employees – all of which are non-monetary and come naturally to the philanthropic nature of nonprofit executives. With a focus on long-term well-being over short-term happiness (think ping-pong tables in the office), the article eschews material perks in lieu of more internal benefits executives can use as a way to motivate staff:

  • Create a meaningful, purpose-driven workplace, and lead through selflessness and a fair group-oriented approach. Nonprofits have the edge here over for-profits in that the whole organization is designed around purposeful, meaningful work. But ensuring that message is consistently reiterated and demonstrated through celebrations of accomplishments is one way nonprofits could up the ante.
  • Encourage a positive, engaging and kind employee culture, from both the bottom up and the top down. Warmth, respect, and considerate actions mean just as much to our well-being whether it comes from the custodian, a colleague or a boss. Simple shifts in a nonprofit’s culture can demonstrate that executive/board leadership see employees as people, not just workers.
  • Prioritize self-care and make it an integral part of the workplace. Wellness programs are meaningless unless executive leadership really sends a message of importance, listening to what employees need and actually giving them the time and permission to implement well-being practices at work and home. With nonprofit employees likely wearing multiple hats and working long hours with fewer resources than their for-profit counterparts, there is opportunity for savvy EDs and board members to set themselves apart in this area.

For more information on creating a culture of well-being at work, specifically by offering your employees much improved benefits (e.g. alternative and complementary care) at a significantly reduced price, please contact us; or, click the button below to get a free savings analysis for your organization!

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The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purp