Embed Size (px)
Citation preview
Hiring and Retaining Great Fundraisers
Sylvie Battisti, Senior Consultant
Tara George, Senior Vice President May 1, 2014
Retaining and Hiring Great Employees
Sylvie Battisti, Senior Consultant
Tara George, Senior Vice President May 1, 2014
Session Outline
• Attracting and retaining fundraising staff is essential to the success of our organizations.
• Our profession has high turnover rates, and yet we all recognize that it takes time to cultivate relationships with donors and volunteers.
• What inspires people to stay in organizations?
• This session will demonstrate how we can apply hiring and leadership best practices to encourage great people to stay, grow, and contribute for longer periods of time.
A little about you…
• Who’s in the room?
• Why are you here?
• What do you hope to gain from this session?
And a little about us…
• KCI Executive Search works with Canadian NFP organizations (including hospital foundations) on hiring for positions in fundraising, donor/alumni relations, marketing communications, advancement services, prospect research, etc.
• Over 220 searches in the past 9 years• We also provide counsel on talent management
and development, compensation benchmarking, organizational development issues
• Our Search Consultants have extensive experience working in the NFP sector
The Case for Effective
Talent Management
High vacancy rate & turnover
– Retaining fundraising talent is an ongoing challenge, due to a variety of factors
– Development director position was vacant for months in a large number of organizations
– Median vacancy reported was 6 months, with 46% reporting vacancies even longer
– 50% of development directors reported that they expect to leave their jobs, in two years or less
Calculating Cost-per-Hire
• 2002 Compensation Planning Outlook by the Conference Board of Canada calculated the average cost- and time- per-hire as follows:
Position Level AVG cost per hire (2002)
AVG cost per hire (2014)
AVG time forhire
Executive $43,000 $56,000 15 weeks
Management/Professional
$17,000 $22,000 9 weeks
Technical $13,300 $17,000 7 weeks
Clerical/Support $ 3,300 $4,300 4 weeks
Plus lost ‘opportunity cost’ of the vacancy
Other considerations• Staff retention is important for donor relationships
and for fundraising revenue– Vacancies = interrupted relationships
– Vacancies = lost revenue
• Turnover also distracts focus from raising money
• More charities = more competition for staff
• Lack of management training and leadership development in NFP sector due to limited budgets
Why is leadership development important?
Demographic Reality
• McKinsey’s The War for Talent Study
– Year-long study conducted in 1998 by McKinsey & Co.
– 77 companies and 6,000 managers + executives
• Key Finding: the most important corporate resource over the next 20 years will be talent: smart, sophisticated businesspeople who are technologically literate, globally astute, and operationally agile
• David Foot’s Boom Bust & Echo
– first published in 1996, demonstrated the power of demographics to help us understand that the population shift has profound implications for our economy and our society
Why is leadership development important?
What inspires
people to stay?
Culture is critical
• Culture is defined as the collective attitudes, beliefs, common experiences, procedures, and values that are prevalent in an organization
• Opportunity to differentiate your organization as an employer
• Potential competitive advantage…
Why is culture important?
Defines behaviour
norms
Creates clarity
Promotes teamwork
Hiring and retaining for cultural fit leads to increased retention
Why do people stay? What do you think?
___ Great people
___ Flexibility of work situation (hours, dress code, etc.)
___ Being part of a team
___ Good boss
___ Career growth, learning & development
___ Fun on the job
___ Recognition for work well done
___ Good pay and benefits
___ Autonomy, sense of control over work
___ Exciting, challenging, meaningful work
Survey says…3. Great people9. Flexibility – work hours, dress code, etc.4. Being part of a team5. Good boss1. Career growth, learning & development7. Fun on the job6. Recognition for work well done10. Good pay and benefits8. Autonomy, sense of control over work2. Exciting, challenging, meaningful work
From “Love ‘em or Lose ‘em: Getting Good People to Stay”
Key variables for staying at current job
• Job satisfaction
• Autonomy
• Promotional chances
• Support of co-workers
• Realistic fundraising goals
• Opportunity for learning
• Commitment to mission
• Distributive justice, equity, fairness in the workplace
• Job involvement
• Support of supervisor
• Search behaviorSource: AFP: “The Revolving Door: A study on the Voluntary Turnover of Fundraisers in the Nonprofit Sector”
Maslow’s Theory of Needs
Understanding Total CompensationThe Employee Value Proposition
Financial Rewards
• Salary
• Pension or RRSP match
• Benefits plan
• Paid vacation
• Incentive or bonus pay
Non-Financial Rewards
• Work-Life balance
• Organizational culture/environment
• Feeling of belonging
• Employee Recognition Plans
Career Rewards
• Visibility in the organization/profession
• Professional Development and Training
• Career and Skills Advancement
• Promotion
Job Rewards
• Enjoyment of role and work
• Meaningful contribution
• Constructive performance feedback
• Independence and autonomy
Employee Engagement
• Employee engagement “drives results”
• 84% of highly engaged employees believe they can positively impact the quality of organizational products or services (compared to only 31% of non-engaged employees)
• 71% of highly engaged employees believe they can positively affect customer service (compared to only 27% of non-engaged employees)
strong driver / predictor of employee retention
Source: What Engages Employees Most, Ivey Business Journal (April 2006)
Increasing Engagement
• What can you do to heighten employee engagement in your organization?
Increasing Retention through Engagement – some ideas
• Stretch assignments and “acting” opportunities• Lateral moves and ‘cross-training’• Learning opportunities (informal and formal)• Mentoring and coaching• Flexible work arrangements• Team activities (at work, outside work)• Career planning discussions• Recognition for work well done• Fair pay and benefits• Ask employees what could be done differently…to
help build sense of autonomy and control• Find out what other trade-offs matter to each person• Make tough decisions about underperformers
Best Practices in Hiring
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Hiring Steps
• Defining the need and the role
• Defining competencies (and qualities)
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Interesting example• Fundraisers for Plan Canada - Contract Positions at Major
Malls with future opportunities for career development.
• “My Opportunity & Your Opportunity” - My name is Jessica, and I'm a fundraiser for Plan Canada. In my role, I encourage potential donors to sponsor a child or donate to Plan Canada's Because I am a Girl initiative.
• I started off as a Fundraiser, just like you can. With all the continued support of my manager and team, I hope to move up in the organization. I care about breaking the cycle of poverty in developing countries and underprivileged children around the world.
• To me, this is not just a job; it's also a fulfilling personal experience knowing I am helping to improve the lives of the children Plan Canada supports.
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Reviewing resumes
• A rigorous approach = smart + fair
• Many candidates, many different styles of resumes…no one style is best
• What can be evaluated or can’t be evaluated from a piece of paper?
• How to interpret experience from organizations and/or sectors that you don’t know well?
• If info missing or if you have questions, ask rather than assuming
• Try to be aware of your own biases
29
Sample resume eval matrix
Candidate RequirementsMUSTHAVE?
CANDIDATE#1
CANDIDATE#2
CANDIDATE#3
3-5 yrs of fundraising experience5yrs = 3pts 3yrs = 2 pts less 3yrs = 1 pt none = 0
Major gift experience25K+ = 2 pts any = 1 pt none = 0 OR Signif = 2 pts some = 1 pt, none = 0
Volunteer management experienceSignif = 2 pts some = 1 none = 0
Staff management experienceSignif = 2 pts some = 1 none = 0
Writing skills (quality in resume/letter)Wow = 3 pts very good = 2 pts ok = 1 pt poor = 0
3 –yr degree or diplomaYes = 1 no= 0
Hospital foundation experienceYes = 1 no = 0
Raiser’s Edge experienceYes = 1 no = 0
Sample resume eval matrix –another approach
Candidate RequirementsMUSTHAVE?
CANDIDATE#1
CANDIDATE#2
CANDIDATE#3
Previous relational selling experience5yrs = 3pts 3yrs = 2 pts less 3yrs = 1 pt none = 0
Major gift experienceSignif = 2 pts some = 1 pt, none = 0
Stakeholder relations experienceNFP = 3 Signif = 2 pts some = 1 none = 0
Staff management experienceSignif = 2 pts some = 1 none = 0
Writing skills (quality in resume/letter)Wow = 3 pts very good = 2 pts ok = 1 pt poor = 0
EducationBusiness = 2 Degree or Diiploma = 1 none = 0
Health-related work experienceYes = 1 no = 0
CRM database experienceRE = 3 Yes = 1 no = 0
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Creating interview questions
• Questions should align to competencies sought
• Determine in advance what you are looking for through your questions– At the same time, be flexible in terms of what is ‘correct’
– The best answers demonstrate higher order of thinking skills (applications, analysis, synthesis, evaluation, creativity), not just regurgitation of theory
– Assess the fit with other team members, volunteers
– DO trust your gut at this point, within reason…but be aware that ‘gut’ is sometimes an indication of ‘bias’
Uses the premise that the most accurate predictor of future performance is past performance in similar situations
• Focus on the past behaviours to understand experiences, behaviours, knowledge, skills and abilities of the candidate that are job related
• Proven to be the most accurate interviewing method in identifying performance effectiveness
• Ask how the candidate did behave in a certain situation, as opposed to how they would behave in a hypothetical situation
• Questions typically start with “Tell me about…” or “Describe a situation…”
• Follow-up questions are used to probe deeper into the candidate’s response to get at the predetermined required competencies
34
Behavioural interviews
• Behavioural: Give me a specific example of a time when you identified and qualified a donor who went on to make a substantial contribution to your organization.
VS.
• Traditional (theoretical) How would you identify and qualify a potential major gift donor for our organization?
35
SituationTask
Action taken Results achieved
SituationTask
Action taken Results achieved
Behavioural question
• To gender– Especially when men apply to admininstrative roles
– Especially when women apply to senior leadership roles
• To personal style– Clothing, hair, scent, make-up, facial hair, eye glasses,
posture, introvert/extrovert, energy level/nervous energy
• To communications styles– Accent, volume, pace of speech or speech pattern, tone
of voice, oblique eye contact (may be cultural)
• To age, height, weight, etc.
36
Be aware of biases
• As appropriate to the job level and the role
• Timing and ‘tone’ of request is important so as not to be off-putting
A few examples:– Typing or data speed/accuracy test, Excel design/use test,
document formatting test for admin assistant or data entry role
– Putting a profile together for a Prospect Research job
– Mapping out a critical path for an Events coordinator role
– Writing a press release or proposal letter for a Communications job
– Prospect ID task for MG role, from name-free giving data
– Case assignment for a Director role to assess strategic thinking
What about tests?
The candidates are interviewing YOU, too!
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
• Expect candidates to – Take their time with their decision– Ask to meet you again, in order to interview you– Ask around about you– Ask to meet more people– Ask to see more plans, documents– Negotiate for more…$, title, vacation, technology, etc.
• Don’t take it personally, even if it was your best offer
• Do try to allow a win-win situation
• Remember: Even great fundraisers get tongue-tied and act awkward when asking for something for themselves
Making the offer
Hiring Steps
• Defining the need and the role
• Defining competencies & qualities
• Creating a compelling message / advertising
• Evaluating resumes
• Evaluating people
• Sharing challenges and expectations
• Making an offer, and negotiating
• Onboarding over 6-12 months
• Ask for specific referees…not just what’s on the list
• Plan for 360-degree reference conversations
• In addition to fact-checking, use open-ended and behavioural questions
• Expect weaknesses, and focus on Conditions for Success
• And vice-versa: Expect lots of positives, explore what the person will need to be successful
• Honour confidentiality of the referees
• Don’t call around without permission, it’s disrespectful and could lead to someone losing their job
• Don’t accept reference letters
• Be patient and don’t rush to the finish line…
44
Checking references
• Depends on the employment status of the candidate
• Can usually check previous employers prior to the offer…but get permission first, to be safe
• May wish to let them know that you are checking references on more than one candidate…before making a decision
• But…candidate may not permit current employer reference checks until the offer is made and negotiated
• In this case, offer “pending successful reference checks”– If one reference is poor, check out the specifics with
other referees before pulling the plug on the offer– Sharing reason for withdrawn offer with the candidate?
Be very careful
45
When to check?
Final thoughts
Use hiring as talent development opportunity
• Opportunity to educate staff and volunteers in
– Understanding challenges of the labour market
– Hiring best practices
– Interview techniques
– Diversity and inclusion principles
– Strategic hiring considerations
• Opportunity to build buy-in for new hire…and shared ownership in success of new hire
Recruitment Etiquette
• Treat candidates the way you treat donors
• Not right for this job does not mean not right for any job
• Offended candidates may not apply, volunteer, or donate again
• Offended candidates tell other people how they were treated
• Respond to EVERYONE who applies…auto-response email
• Ensure confidentiality
• Set up interviews so that the whole office doesn’t see the candidate, and so that candidates don’t run into one another
• Don’t leave candidates hanging after interviews
• Keep them apprised of timelines, even if only a quick email to say you haven’t made a decision yet
You aren’t just choosing candidates, they’re choosing you, too!
Outstanding On-boarding“You never get a second chance to make
a great first impression”
• Lots of stress around a new job, both for employee and employer…need to set up practices to reduce this stress
• Management of new hires shouldn’t be an afterthought• Help new hires feel welcomed, valued, prepared (“team sport”)• Build their understanding of your organizational norms,
expectations, culture• Quickly build strong inter-organizational connections and foster
employee engagement• Help them to map out a plan for the first six months (or beyond)• Reduces “new hire remorse” for candidates, extends retention
Also apply on-boarding to retained
employees who take on new jobs!
The Market for Top TalentKCI Learnings from over 220 searches
• Demand for experienced fundraisers still outstrips supply– Also true for leadership positions, and for specialist positions (ie.
prospect research, analytics, gift planners, strategic stewardship)
• Increased need for leadership skills, but little leadership development training in organizations/sector
• Great onboarding is critical, but unfortunately uncommon• Increased need/desire for business training/acumen • New employees expected to “hit the ground running”
– Are expectations reasonable? Are sufficient resources provided?
• High desire for “plug n’ play” candidates– Be prepared with competitive compensation!– Is this encouraging high turnover?
• Resistance to “grow your own team” strategy • More candidates coming from Corporate/Public sectors • Boards may not understand the market in our sector
Questions?
