Nonprofit organizations benefit from a cadre of hard-working, dedicated professionals. However, despite the talent and experience in this mission-driven sector, many nonprofit organizations are not as efficient or effective as they could be. What is it that holds many organizations back from reaching their full potential and making the impact they wish to achieve?

This past summer, Commongood Careers and Empowering Work Practices conducted a survey to ask the staff members of nonprofit organizations these very questions.  The survey, administered in July and August of 2010, was promoted through the Commongood Careers website and email newsletters. Survey participants answered between 16 and 19 questions about career planning and decision-making in nonprofit organizations.

We heard one message loud and clear: nonprofit organizations have much to learn when it comes to instituting effective decision making and career planning practices.

(A) This is a challenge that many nonprofits have been faced with in the economic downturn. Before moving to layoffs, consider using a hiring freeze. Can you commit to not making any additional hires, even if you experience resignations and turnover? This will require you to reallocate the work loads of departing employees, but may be a slow and easy means of reducing your staff size.

Another option to consider is part-time and flexible work arrangements. Are there staff members who would prefer to work part-time, either on a temporary or permanent basis? Or is there anyone on staff who is interested in taking an unpaid leave of several weeks or several months for vacation, travel, family time, consulting, or any other reason? If so, you may be able to work out deals under which people reduce their hours or have their jobs waiting for them when they return from leave. You may also consider officially terminating a full-time employee and hiring them back as an independent contractor if they are going to be working on a part-time and project-oriented basis. This will save on benefits expenses as well as payroll taxes, but make this move with caution as the IRS has strict guidelines regarding independent contractors.

It will also help with your budgeting efforts if you can find out sooner rather than later if people are planning to leave for any reason such as graduate school or relocation. This can be a difficult conversation to have, as you don't want to give the impression that you are pushing people out the door or panic people who were not intending to leave. Nonetheless, the information gained through such conversations may be vital to you in considering whether or not more difficult staffing decisions need to be made.

Have a question for our experts? Email kgagnon@cgareers.org.