High performing employees in the nonprofit sector can gain better compensation, benefits, and incentives by working in the for-profit sector. Employees departing for the for-profit sector decreases the overall talent pool in the nonprofit sector, and removes top talent from nonprofit organizations. Nonprofits require employees who are working at peak performance, as they can typically only afford a reduced headcount due to budgetary restraints. Employees are attracted to positions which afford adequate or above standard levels of compensation. The most talented employees are the most unattainable with the current method of employee attraction and retention.
The research questions addressed in this dissertation are 1) How can leadership address the compensation, benefits, and incentives of high performing employees in the nonprofit sector to ensure attraction, retention and engagement? and 2) How does compensation, benefits and incentives impact the resources available to a nonprofit via donations or public funds? Sixty articles were selected for their relevance to the topic containing research based on U.S. operating entities, from peer-reviewed journals and the snowballing method. Evaluation of the articles was performed using the Mixed-Methods Appraisal Tool. Thematic Synthesis was performed on the selected research articles and consisted of three stages; primary coding, descriptive themes, and analytical coding.
Findings from the selected articles were synthesized for best practices and implications for the field of nonprofit management. Nonprofit employees and executives were found to receive lower compensation than comparable for-profit positions. Nonprofit employees were provided with nonmonetary benefits including racial and gender equality in the workplace, flexible work schedules, medical and retirement benefits, and intrinsic motivation from moral alignment with the mission and vision of the organization. Best practice recommendations are for nonprofits to channel resources into employees and executive baseline compensation to become more competitive for attracting and retaining talented employees. Nonprofits should expect public donations to decrease as compensation rises due to the public’s belief that the majority of resources should be allocated for the mission and vision of the organization. Organizational program service revenue should be expected to rise commensurate with public donation decreases, as talented employees are hired and retained and positively impact revenues. Organizations which treated public donations as passive income, and spent their current marketing, communications, administration and fundraising resources on business operations including employee compensation, would be better enabled to capture program service revenue, government grants, and investment income.
|Commitee:||Best, Candis, Welzant, Heather|
|School:||University of Maryland University College|
|School Location:||United States -- Maryland|
|Source:||DAI-A 80/06(E), Dissertation Abstracts International|
|Subjects:||Business administration, Management|
|Keywords:||Compensation, Employee incentives, Non-governmental organizations, Nonprofit, Staffing|
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