Demand Intensifies From Non-Profits Seeking Senior Talent

Published by Hunt Scanlon Media, September 2023

“Executive search firms are staying busy helping mission-driven organizations fill some of their most vital roles. A number of charitable groups, in fact, are expanding their services and seeking help for multiple roles. Recruiters from The Moran Company, DHR Global, Lindauer, Salveson Stetson Group, The Christopher Group, Perrett Laver, and Diversified Search Group weigh in.

Non-profit organizations in 2023 are facing inflation, declining donations, increased demand for services, workforce shortages, and more. A recent non-profit trends report by Forbes says that the changing workforce is presenting challenges for both for-profit and non-profit leaders. Being ready to consider alternative staffing options would put many of them ahead of the shifting landscape, says Forbes. Fractional staffing possibilities exist from the administrative level through the executive director level, says the report, and may be worthy of consideration for both short-term vacancies and long-term solutions. For senior-level positions, many leading non-profits are turning to executive search firms.

A search for a non-profit executive has much in common with any personnel search, and most boards have members who have hired many people in their careers. The distinctions in the hiring of an executive by a volunteer board, however, create special process issues, and a specialized search firm is best suited to address these, says a report from The Moran Company.

“Poorly executed searches may result in hiring delays, poor selection, loss of good candidates, or a difficult start for the new executive,” the firm said. “A strong search process that is well articulated, adopted by the board, and enforced by leadership of the board prevents these problems. Since by design, a volunteer board relies on management and leadership from paid staff, there’s a natural gap when a board begins its search and the selected firm steps into that gap.”

Search consultants are a valuable resource who have seen it all (almost) and are ready to help navigate troubled waters. “But all boards and searches benefit from a clear process that anticipates every step – and just as important, a search chair with the authority and assertiveness to enforce the process,” The Moran Company said.

Continued Demand

“Demand for executive search among our non-profit leaders continues to be very strong,” said Sara Lundberg as managing partner, North America non-profit practice at DHR Global. “Some experienced a modest slowdown in Q1, but have seen continued and strong demand across the sector. We see some clients experiencing dramatic growth, and with those groups, we are being brought on to fill ever-expanding needs, recruiting for multiple roles, particularly to increase expertise at the senior level as organizations – and their needs – become more complex.”

“We are seeing an increased demand for skilled CHROs,” Ms. Lundberg said. “As organizations settle into new ways of doing things, and as continued hybrid work and remote structures pressure leadership to adapt, non-profits are turning to us to help them find more skilled HR leaders who can help them to manage people in new ways, as well as build and grow teams, and the culture that binds them.”

“In general, non-profit employees are liberal in politics and nature, and there are now certain states in the country – Florida, Texas, Tennessee among them – where candidates are reluctant to work,” said James Abruzzo, managing partner, global non-profit practice at DHR. “These are direct responses to the changing political environments and it’s having a serious impact on non-profits, even those in cities with more liberal bents.” “We are seeing much more transparency in search processes,” said Ms. Lundberg.

“Non-profits are increasingly using staff hiring panels to build buy-in for hires. While this addition slows a search process, we are finding that non-profits – and their new hires – benefit from the increased inclusivity and the diversity of views. Candidates are leading with questions about work location and arrangement. Non-profits who have not adopted hybrid or flexible work arrangements are losing out on candidates who grew accustomed to flexibility.”

Because there are fewer non-profit jobs than corporate jobs, and lower compensation in our sector, the current economic environment is having even more of an impact on non-profits, according to Mr. Abruzzo. “Human service jobs in states challenged by soaring homelessness, like New York and California, are becoming harder to fill as the challenges those organizations face feel increasingly insurmountable. During the pandemic, many non-profit executives postponed their retirement and we are now seeing many leaders transition. The sector hasn’t invested in enough in building successors and is suffering as a result.”

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