Talent Management Practices in California Nonprofit Organizations
Keywords:
talent management, HRM, nonprofit management, talent development, nonprofit organization governanceAbstract
This study investigates prevailing talent management (TM) practices in the context of nonprofit organizations, using an exploratory qualitative research design. While the research is clear that TM enhances outcomes in the for-profit sector, limited studies have explored TM practices and processes in the context of nonprofits. It is important to examine this sector because nonprofits are struggling to compete with their for-profit and public counterparts to recruit and retain talented individuals, who would in turn, drive growth not only for the organization but also for the sector.
This research explored how nonprofit employees in management positions engage in talent management practices that are designed to attract, develop and retain high-quality individuals. It also examined the factors that support and challenge their efforts. Constructive grounded theory was employed as the overarching method to collect and analyze data, gaining perspectives from experienced nonprofit professionals. The chosen method allowed in-depth understanding through meaningful reflections and sense-making of the data on the field. This qualitative study was carried out through semi-structured interviews with key informants as described above, to gain perspectives on TM in the context of nonprofits. Then, propositions were generated inductively from the data obtained through coding processes.
Given that existing literature as well as emergent findings suggested that nonprofits are still lagging behind the other sectors in talent management practices, especially in talent development and talent retention. The main challenge identified was inadequate financial resources. This implies that nonprofits struggle to offer attractive compensation packages to draw and retain their best talents. Another implication is on budgeting on talent development since nonprofits possess less financial resources, coupled with the public pressure to maintain low overhead costs, nonprofits spend significantly less investments on human resource development. As nonprofit leaders and administrators continue to face challenges in rising competition in acquiring talents, this research offers practical recommendations to promote hands-on strategies; leveraging non-monetary incentives, promoting career growth and developmental opportunities among others, to help nonprofits achieve their strategic goals and further sustain organizational agenda.
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