Tuesday, November 3, 2009

Non-Profit Survivors: How The Economy Is Effecting Non-Profit Businesses

By Clair Shortstage

The dwindling economy has had a major impact on every business. I mean every businesses (except repo companies, who, thanks to the massive amounts of now broke people, have found tons of couches and cars to repossess). Because so many businesses have plummeted, so many incomes dwindled, so many opportunities and careers squashed, it has become decidedly more difficult to entice anyone to give their money away, regardless of the cause the money supports.

Non-profit organizations have recognized this hesitance, or downright refusal to spend, all too clearly. Their fundamental source of income lies within the general good-heartedness of the population at large, so non-profits must manage more bumps along the way when good-heartedness is adversely affected by financial situations. Just because someone is a good person, doesn't mean they're willing to dip into their savings to help others when their own families sit in precarious positions.

Fund raisers are common events in which non-profits participate, and have proven effective in the past. Nowadays, however, with more people eluding any events that may mandate a certain monetary donation, fund-raisers have become far less efficient. Actually, most traditional methods of enticing citizens to give to charities have become less powerful, simply because the "giving" aspect is not something in which people are readily willing to partake.

Larry Wenger composed on article on ezinearticles.com, in which he summarizes and then details ways non-profits can attempt to restrict monetary losses: make better hiring decisions. Retention times in similar companies, especially during the first year, are low; employees leave after only a short span of time. Part of this is due to hiring unfit employees in the first place, and therefore, emphases must be placed on the critical pre-evaluation period. Properly evaluating a potential hire can lead to choosing a more appropriate applicant for the organization, one who will fit and maintain his role, irrespective of potential stressful situations. If hirers do the sufficient amount of work to certify the applicant will fit well within their office walls, many unseen complications can be avoided later.

That evaluation must have another dimension to it that will increase its chances of being an accurate analysis of the candidate: open communication between departments within the business. If everyone has a common objective, and that common objective can be imparted upon a future employee, the employee will likely be a natural fit in his position. But if the Human Resources department, for example, remains autonomous and doesn't consult the department to which a possible candidate may be assigned, that candidate could disrupt that department's performance. Open communication is vital to maintaining an effective work environment.

To further increase retention rates within nonprofit businesses, allow employees to exercise a flexible schedule if their obligations seem to overwhelm them. As we know, adult responsibilities are not limited to their careers; they must manage their families' lives, financial states, etc. Any number of ancillary obligations can actively impede how well an employee works. If he can generate the same amount of work away from the office, while being able to properly oversee his other needs, he will be much more willing to do the work and stay at the company, knowing they care about his entire life, not just his work life.

That kind of job satisfaction is also critical to keeping employees in the organization. Sharon Mikrut, an author on ezinearticles.com, tells of the importance of "culture" within a business-specifically, a pleasing, generally upbeat culture that keeps workers, not frightened when they wake up.

Non-profits will continue seeing steady declines in profit as long as the economy sees the same, but there are still some ways to continue operating with relatively stability. Focus on the employees: make sure you hire the right ones, and make sure you give them reason to stay.

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