Estimated Reading Time: 6 minutes
By Melanie Lockwood Herman
NRMC team members are inclined to describe staff turnover as a reality, not a risk. Why? Because every member of your team will—generally at a time and for reasons beyond your control—resign their position and leave for different, if not greener, pastures. True, some may separate at your behest, and a few will provide a long period of notice to lessen the inconvenience to the organization. However, most will leave of their own volition after providing the minimum notice requested in your personnel policies.
In the Summer 2021 edition of SHRM’s quarterly publication HR Magazine, the title article—“The Turnover Tsunami”—caught my eye. Writer Kathryn Tyler describes a perfect storm of circumstances for which most employers are ill-prepared. “About 1 in 4 U.S. employees plan to leave their employer as the COVID-19 pandemic subsides,” according to the results of a November 2020 survey by Ipsos on behalf of Eagle Hill Consulting, a management consultancy in Washington, DC. “You’re not going to walk away from this unscathed,” warns Melissa Jezior, CEO of Eagle Hill. “The Turnover Tsunami” relays bleaker statistics as well, anticipating that 2 in 5 U.S. workers are already actively looking for new jobs.
The February 2021 Engagement and Retention Report from Achievers Workforce Institute explains that the tsunami headed your way (if it hasn’t already made landfall) can be attributed to employees seeking:
The report also explains why some workers will choose to remain with their employers, with 26% of survey respondents staying for work/life balance, 21% for recognition, 19% for adequate compensation and benefits, and 19% for great working relationships with their managers.
Word on the street hints at ample other reasons for the looming tidal wave of turnover:
Some of the hard truths we’ve been counseling teams about include:
To rectify the unreadiness for looming staff departures, take the following steps.
Critical Task |
Back-up staff or contractors trained to do this and prepared to step in |
Plan to fill any gaps, including deadlines |
Review contracts submitted by the program team before execution; focus on key provisions such as indemnification, scope of work, and insurance requirements | 1st: Senior Accountant
2nd: External Legal Counsel |
Deliver a contract review workshop to at least 2 members of the Executive Team by 12/31 |
Review draft monthly financial statements and prepare summary memo for the Treasurer and Finance Committee | 1st: Senior Accountant
2nd: Deputy Executive Director |
Train the entire finance team on the mechanics of preparing the monthly summary memo for Finance Committee review
Allow each team member to draft one memo during the next six months; provide feedback and suggestions on the drafts |
If your team hasn’t experienced any recent turnover, it’s time to brace yourself for what’s coming. It is highly unlikely—dare we say improbable—that you will exit 2021 without unplanned vacancies to fill or shuffling roles to fill new gaps. Rather than wasting your time as the host of a pity party to mark these inevitable transitions, take steps now to get ready to lead a smooth transition and prepare a warm, red carpet welcome for the new perspectives that will soon join your staff table.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your calls and emails about taming trepidation over the truth of a turnover tsunami or questions about NRMC’s educational and consulting offerings at 703.777.3504 or Melanie@nonprofitrisk.org.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of the Center to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of the Center. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The Center team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!