Trends & Issues
Managing people through turbulent times
Lynne Toupin |
Lynne Toupin is the executive director of the HR Council for the Voluntary & Non-profit Sector. She has led a number of non-profit organizations over her career including the Canadian Co-operative Association and the National Anti-Poverty Organization. She co-chaired the Accord Table for the Voluntary Sector Initiative, which led to a written agreement between the Government of Canada and the voluntary and non-profit sector. |
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View this Trends & Issues column as a PDF | |
Economic uncertainty. Market downturn. Recession. You can’t open a newspaper, turn on the radio or browse the web these days without being constantly reminded of the dismal state of economic affairs in this country and around the world. Pundits and analysts are forecasting economic doom and gloom for the foreseeable future and with daily reports of massive layoffs, Fortune 500 companies folding and ballooning government deficits; good news is a rare commodity. While the focus in the media has been on the plight of traditional economic sectors (think automotive, financial and manufacturing to start) we can’t lose sight of the impact that what many are calling the “worst economic downturn since the Great Depression” will have on the voluntary and non-profit sector.
Consider for a moment the fact that our sector employees 7.2% of the country's total paid workforce – that’s nearly 1.2 million people – with a collective annual payroll of more than $22 billion.* In fact, paid employees in our sector outnumber the total combined workforces of the four Atlantic Provinces. They also outnumber employees in the country's entire construction and hospitality industries combined. The sector is a critical component of the nation’s economic engine and when that engine stalls, we’ll feel it in a number of ways.
Increased demand for services
Unlike most economic sectors, the non-profit sector typically sees an increase in the demand for services during an economic downturn, especially front-line organizations working in human and social services. More and more people will turn to the sector for assistance, seeking out everything from crisis counselling to emergency housing. The lines at the food bank will undoubtedly grow, as will the number of people visiting employment centres looking for help in finding a new job. This increase in the demand for services could in turn lead to higher rates of staff stress and burnout, especially among those delivering service on the frontlines.
Operating in a period of reduced funding
While there are a few instances where organizations are bucking the trend, for the most part, non-profits have to deal with the reality of operating in a period of reduced funding. Many private and community foundations have pared down or eliminated their annual disbursements this year due to the dramatic reduction in value of their investment portfolios. Companies in the private sector are reviewing operating expenses and expenditures, leaving corporate donations, sponsorships and other forms of community support at risk. Individual donors, faced with the looming threat of job loss or a sudden drop in income, are thinking twice before writing a cheque to support a worthwhile cause.
When you pair an increase in demand for services with a decrease in available funding – it sounds like we’re heading toward a perfect storm. However, it’s a familiar refrain in the sector, this notion of having to do more with less. It’s pretty much our modus operandi regardless of the state of the economy. So instead of lamenting this fact, I’d like to offer a few practical ideas that may help your organization to better weather the storm...
Don’t lose sight of your organization’s most valuable asset – its people
It’s true that the stress of running an organization can be overwhelming at the best of times, however it’s vital to not lose sight of the importance and value of your employees, especially in times where they are potentially feeling added pressure, stress or even worry over the security of their own jobs. While you shouldn’t make promises that you can’t keep, you should recognize that some of your employees might be feeling vulnerable to the possibility of job losses within your organization. Be honest with them about how your organization is doing, and attentive to any expressed concerns about the security of their jobs. While you don’t want to scare them into looking for another job, you don’t want to mislead your staff into thinking that everything’s going to be alright if your organization is indeed at real risk of having to lay off employees.
If you do find yourself in the difficult position of having to lay off staff, make every effort not to burden remaining staff with the extra work. There are limits to doing more with less and your remaining staff may be unprepared or unqualified to take on any additional responsibilities. If you think the work can be taken on by a volunteer, look carefully at the job tasks, assess the risk of having a volunteer take on that position and consider how the volunteer will be effectively supervised. You may find that managing a volunteer who isn’t right for the job will end up creating more work for yourself and the rest of your staff.
Remain committed to good human resource practices
While it might easily end up on the back burner in times like these, it’s important to stay committed to good HR practices. This could be as simple as taking the time to recognize employees for a job well done and reaffirm the impact that their work has on the organization and your clients – you’d be surprised how far recognition can go to boost morale and keep your staff productive and engaged. Remember though that these affirmations need to be personalized. For some it may take the form of a public acknowledgement during a staff meeting, for others it might a hand-written thank you card or the opportunity to leave early on a Friday afternoon.
Also remember to keep up with your staff’s training and professional development. While your budget may not allow you to pay for staff to attend courses or conferences at this time, there are a number of effective (and often inexpensive) ways to develop your employees and build your organization’s internal capacity. This could include setting up coaching or mentoring relationships between co-workers, encouraging job-shadowing or hosting informal lunch and learn sessions. Check out the HR Toolkit for more information on learning, training and development.
Explore new ways of doing things
Job-sharing is a growing trend in many non-profits, not only because more staff are juggling careers and family obligations but also because they can see the benefits of offering flexible work arrangements to their employees. Job-sharing can increase productivity, reduce absenteeism and turnover and it can be an effective way to retain valued employees.
Another worthwhile option is to consider the possibility of sharing services or resources with other organizations. Whether it’s a shared office space, sharing a bookkeeper or an HR specialist, there are a number of interesting possibilities in this realm. The HR Council is partnering with a number of other organizations on a project exploring a range of shared service models that organizations could employ to reduce costs and increase efficiency. For our part, we’re looking specifically at how organizations can effectively pool their resources to share the expertise of a highly qualified HR professional as an ensemble at a fraction of the cost that they would incur if each were hiring an HR specialist individually. Some of the other organizations involved in the project are considering other shared service models including how to effectively share office space, offer employees access to a pooled benefits plans or develop a platform to share training, learning and mentoring programs across organizations.
Final words
No one can predict the length or severity of this recession but what we do know is that our sector, like many others, will be affected. Some of us were around during the last recession, when unemployment rates went as high as 11.5%. Our sector was called upon not only to provide a range of services to those in need, but also, in some instances, to create jobs for the jobless. In other cases, organizations lost their funding and employees lost their jobs. Over the months to come, the HR Council will be monitoring the effect of the recession on this sector’s workforce as well as providing practical HR information to help managers navigate through these turbulent times.
* Cornerstones of Community: Highlights of the National Survey of Nonprofit and Voluntary Organizations, Ottawa: Minister of Industry. Revised version, June 2005. Statistics Canada catalogue no. 61-533-XIE
