What Boards And CEOs Need To Remember For Post Covid-Retention
Nov 9, 2021
We are now entering month 19th of the covid-19 pandemic since the country completely shut down in March 2020. Our non-profit leaders have faced continuous pressure and challenges from overflowing ICUs, staff burn out, revenue loss and human resource dilemmas such as the topic of mandatory vaccinations. They have also faced the same emotional impact the pandemic has had on all of us. Going into the winter months, AGAIN we are asking these leaders to fight through rising virus numbers and keep us safe.
However, imagine one of your irreplaceable hospital key leaders notifies she or he will be leaving for another organization that is offering a better compensation package.
Non-profit compensation is often misunderstood by the public and sometimes boards. Innately, there is a misconception that our non-profit leaders earn less than they would earn at a for-profit. In result, this makes the topic of compensation awkward, especially at the senior-level. The truth is our non-profit leaders operate organizations that employ large portions of the US and affect almost everyone. In order to run these large, and demanding organizations that our integral to the population, the country’s best talent is required, which requires competitive compensation to for-profit compensation.
The Pandemic has highlighted the importance of our non-profit leaders. They never were able to work from home and enjoy a relaxed schedule filled with zoom meetings, while lying in bed or an outdoor office in the sunroom. Many of them worked 7 days a week and witnessed more death than any one of us will in our lifetimes. Now more than ever, it is a perfect time for boards to check in with their leaders and find out how they feel about their compensation packages. Are they truly competitive?
With turnover of key employees at its highest level of all time due to the baby boomer generation retiring, the competition for key talent is the highest it’s ever been. Boards need to ask themselves can we afford not to be as competitive as possible.
Modern Capital Executive Solutions (MCES) can consult boards and key employees through this delicate conversation. MCES will run a complementary analysis to find out if the supplemental benefits being offered to these employees are truly competitive and make recommendations on how to enhance the current package. Often, this work will identify easy to implement strategies that enhance the current tools and protect the most valuable resources within our organizations, our leaders.