I was recently asked, “What is the major difference in turnaround for-profit vs. non-for-profit organizations?” To the surprise of the audience, it was not the drive for the bottom line (EBIDTA / EVA) – it was the team and the environment.
- Continuing Education and Career Development
- Long Term Challenging Career Path
- Opportunity for advancement based on Performance
- Skin in the Game – Entrepreneurial Spirit is not rewarded
- Pay increase has no correlation to merit
- Manager / Bosses are too political or “appointees”
- Temporary custodians
- Constructive evaluation process
- Cannot fire the “bad” Superintendent / Mayor as one could with a CEO
It is interesting that in comparison that many non-profit organizations do not aspire to treat the employee like a team member. When you consider that the costs (both direct and indirect) associated with turnover for a non-profit employee is 150% of their total compensation package per year, from a purely practical and selfish perspective one would expect that employee would be considered a true investment.