Finding good talent – especially high performers – has never been more challenging. We are in unprecedented times. The National Bureau of Labor Statistics indicates that this is the first time in over 40 years that there are more jobs than workers, and it is by a significant margin. Economic uncertainties have resulted in some layoffs, but overall long-term labor availability will remain marginal. In February, the jobless rates fell in 9 states and went up in 3 states, remaining stable in 38 states. James Bullard from the Federal Reserve Bank of St. Louis states that the “labor market performance remains strong.” The biggest reason for this is… demographics – mainly in the retirement of baby boomers. “Despite very high wages and an incredibly tight labor market, we don’t see participation moving up, which is contrary to what we thought,” Mr. Powell from the Fed said during his final news conference of 2022, adding: “Part of it is just accelerated retirements.” (NY Times: Retirees Are One Reason the Fed Has Given Up on a Big Worker Rebound; Smialek, Jeanna and Casselman, Ben; Dec. 27, 2022). Keeping reading below as we share a few talent solutions in a tight labor market with you that can help your organization weather these challenging times.
Several key statements lead to important inferences here:
Labor shortages are not going away.
Labor shortages are leading to recruitment challenges.
Recruitment challenges are leading to significant wage inflation (up 5.1% overall in 2022, according to the Bureau of Labor Statistics).
What does that mean for nonprofit institutions in recruiting and talent management?
In our opinion, and based on what we are seeing, demand for fundraising professionals is outpacing supply.
From our conversations, only a few shops are downsizing or reducing fundraising goals. Most nonprofits desire to have increased philanthropic support. Many universities, for example, are adding positions in support of robust campaign ambitions.
Competition for top-level talent is increasing, driving significant competitive compensation pressure – often unplanned and unbudgeted.
You are falling behind if you are not considering new ways to recruit top talent and retain your team. If you are not paying attention to what is happening in the marketplace, your team and your fundraising will underperform.