Idaho nonprofit workforce faces hiring and retention challenges in report

A new report is showing that an essential segment of the workforce in Idaho is struggling to fill positions due to a myriad of reasons.

In the nonprofit sector, many roles are left unfilled due to challenges in hiring, retention and competitive wages, leaving one in five organizations finding it difficult to find qualified workers, the Idaho Nonprofit Compensation and Benefits Report stated.

Nonprofits that provide community services such as food assistance, mental health, education and housing services are having problems competing for talent when other sectors are able to provide higher compensation.

The report, which was developed through a partnership with Boise State University‘s Idaho Policy Institute and nonprofit associations throughout the Pacific Northwest, found that:

• Twenty-one percent of Idaho nonprofit organizations reported having open positions they cannot fill, which is typically operational staff that is required to keep services running.
• Turnover averages 27% for full-time staff and 37% for part-time staff.
• Forty-eight percent of nonprofits must use contractors for things such as bookkeeping and IT services.
• Among organizations facing hiring challenges, 73% increased compensation, but average increases ranged from just 5% for executives to 9% for operational support staff, leaving many still struggling to match other sectors.
• Benefits are a significant cost, with just 71% of organizations offering medical benefits, and total benefits cost averages 16% of payroll, which, the report stated, is a substantial burden for smaller nonprofits.
• In response to hiring and retention challenges, many organizations reported expanding flexible work schedules, enhancing medical and dental benefits, and increasing professional development opportunities.
• New employees receive an average of 15 days of paid time off, increasing to 23 days for long-tenured staff, reflecting efforts to support rest and prevent burnout in high-stress roles.

“People are the programs,” said Kevin Bailey, vice president of Impact & Nonprofit Center at The Idaho Community Foundation. “When a nonprofit can’t hire a case manager, there’s a family that doesn’t get housing support. When a youth mentor leaves and can’t be replaced, there’s a teenager who loses a lifeline. This report is a warning signal that the workforce we rely on to keep our communities strong is under significant strain.”

The report isn’t just meant to send up an S.O.S. flare. It was created to help funders, donors and community leaders help stakeholders “make informed decisions about compensation and benefits,” toward solving the workforce problem.

“Nonprofit staff are often the first phone call when someone loses housing, needs mental health support, or is searching for care for an aging parent,” Bailey said. “It is not acceptable for the people holding our safety net together to be one paycheck away from needing those same services themselves. Idaho’s communities are stronger when the people doing this work are paid fairly and have access to solid benefits.”

The full report can be found by clicking here.