Transitioning employee management practices within non-profits in response to changing market conditions

Article written by Jan Golding of Roots HR CIC and Heather Black of Economic Change CIC

In the last year we have seen changes in the market place for non-profits, with influences and changes that have an impact on the recruitment, performance management and retention strategy of employees and also the role of trustees in strategic development and innovation.

Increasingly senior management teams are seeking advice on how to transition their approach to managing employees and trustees in response to these market changes.

Some of the challenges that are being tackled:

Creating a commercial mind-set of staff and trustees – We are seeing changes to commissioned services and tendering processes, increased application of payment by results agreements, and a transition to a social enterprise model with paid services – As a result the senior management team is becoming ever more interested in helping trustees, managers and front-line staff to develop an increasingly commercial mind-set, whilst also trying to hold tightly onto the values that many non-profit volunteers and staff hold for helping others at no charge.

Employee Contract Terms – Funding reductions, greater financial risks, and competitive grant rounds all create uncertainty and result in questions over the long term sustainability of an organisation and job roles. So what are your options for managing resources with contract terms that meet the needs of the organisation and your employees? We all want to provide stability and hold on to great staff to sustain the organisation in the long term.

Salaries and Benefits – Very few of us would argue with the social benefits of introducing the Living Wage, or auto-enrolling employees to provide for retirement – but the reality of these higher costs is one of margins that are squeezed ever more tightly. For most social sector employers, the largest outgoing is the cost of the workforce – and the workforce is also the greatest influence on good or bad performance, reputation, service delivery. How do you attract and retain staff in the future with some of the current challenges being faced?

Managing changes and implementing a robust but flexible HR infrastructure with the right roles, structure, performance framework and effective working practices and systems will be a priority for the year ahead.

During times of change, Herzberg, an American clinical psychologist identified that hygiene factors were an important foundation for employees, before other motivating factors could be introduced to help team members accept change and excel in their role. A summary of the key factors are below. (Source: Herzberg 1968)

Hygiene Factors 

Company policy
Working relations
Working conditions
Quality of supervision/management

Motivating Factors

The type and nature of the work.

Excellence in Employee and Trustee Management Event – Free Seminar

Whether you are a CEO, Operations Manager or HR Manager register to attend our free Economic Exchange event on the 29th April in London to find out more about:

  • The Pillars to HR and Employee Management in context to the current marketplace.
  • Principles of a Change Management Strategy
  • HR Systems and Intranets using Salesforce CRM
  • Facilitating and Leading Trustees and Employees through Change

Speakers from: Economic Change, Roots HR CIC, Phoenix Training and Coaching and Charity Leaders.

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