Do you currently have positions open and are actively looking to hire? Here are a few things to consider as you struggle to find the right person with the right skill set for your organization.
Nonprofit Survey Says…
A CareerBuilder survey found that approximately 57 percent of nonprofits indicated they were planning to hire in 2016 – a 7 percent increase from 2015. Given the number of Baby Boomers retiring, that number is likely to grow. It’s interesting to compare that to the 36 percent of private sector companies who responded that they were planning to hire.
That’s good news for job-seekers. But if we take a closer look, it may mean bad news for Nonprofits looking to hire.
Talent Drought Exacerbated by Nonprofit Employee Churn
The high numbers of open positions within nonprofits are likely to remain that way for the foreseeable future. Baby Boomers are retiring in record numbers. But another statistic plays a role here. Nonprofits are plagued by a steady employee churn rate of 19 percent in addition to the talent drought. http://qbixas.com/nonprofit-accounting-help-wanted-sign-gathering-dust/
It’s difficult, if not impossible, to move forward on strategic goals such as the expansion of programs, obtaining optimal accountability and transparency for key stakeholders, cultivating donors, and seeking new sources of funding when enmeshed in a constant or frequent state of hiring.
Managing Overhead Costs
Further strain comes with the need to manage overhead and administrative costs. This is felt most acutely by nonprofits who are looking for expert accounting personnel. Keeping salaries low will not attract the candidates with rich experience and deep knowledge of nonprofit accounting and compliance. Upwardly adjusting salaries poses another problem: less money directed at programs and outcomes and more money tied up in administration expenses.
An Easy Solution You May Not Have Thought Of
Many nonprofits are outsourcing their accounting to address all the problems covered above. It’s become the nonprofit best practice of 21st Century.
Nonprofits are outsourcing their accounting to ensure that:
• they have the level of nonprofit accounting expertise necessary for their organization
• there is no disruption to timely, reliable, and accurate reporting due to turnover, sick time, vacations or personal time off
• administration costs are at ideal expenditure levels
• executive management time is spent on mission-centric activities rather than sifting through resumes or devoting time to on-boarding new accounting hires
If you currently have an accounting position open or foresee the need to hire in the near future, you may be better served by outsourcing rather than hiring. The Qbix team would be happy to speak with you about your situation – we recognize that every nonprofit is unique – and run the numbers to see if outsourcing would ultimately be a better decision for you in terms of time, money, and the goals of your organization.
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