It was the shot heard ‘round the nonprofit world. Over the holidays, the New York Times ran a piece (paywall) about the social sector’s inability to retain and hire talented staff — a consequence of the “Great Resignation.” Millions of workers are leaving their jobs, and for nonprofits, that often means losing people to for-profit companies. The implication is that the social sector can no longer compete and is doomed to mediocrity since the private sector is better able to raise wages and benefits and therefore attract the best people.

I don’t buy it. I don’t think any nonprofit executive or manager should either. But I do think it’s a call-to-action for any social sector leader who wants to come through the “Great Resignation” stronger.

While there’s no question that for-profit jobs often pay more, it’s also true that charitable giving is up — 2020 saw a 5.1% increase — which can help fund pay raises. More to the point: Pay isn’t the only factor, or even the decisive factor, in why people choose to work in the social sector. The American Workforce Index has decisively shown that employees want a workplace that trusts them, recognizes their unique talents, respects their insights and gives them the autonomy to make a difference through their work. Shouldn’t nonprofits excel on these points?

Sadly, I've found they typically don’t — and that’s where the call-to-action comes in. The social sector needs a new management culture, one that appeals to the best people and brings out their best.

Previously I introduced the concept of an “empowerment framework” to guide social sector decision-making. I applied this concept to nonprofits’ work, urging them to believe in the people they serve, see them as the source of the solution to the problems they face and empower them to overcome those challenges from the bottom up. This concept can also be applied to management. In my experience, the most effective nonprofits start by empowering their own teams.

Read the full article about surviving the great resignation by Evan Feinberg at Forbes.