Finding and retaining top talent has always been a challenge for nonprofits. The sector is less competitive with top talent due to size, compensation, and ability to invest in retention, growth, and development. The stakes are higher than ever in these times of challenge and uncertainty. Nonprofits face increasing competition from the private sector, changing expectations, and a growing need for leaders who can navigate complexity with vision and skill, alongside a changing workforce. For volunteer board members, this reality calls for a more active role in supporting the CEO/executive leader in talent strategy.

Why Talent is Today’s Greatest Challenge

Across the nonprofit sector, organizations are struggling to fill critical positions. “I’ve worked in the space for nearly three decades, and hiring good philanthropic/development talent has always been a challenge,” said Heather Eddy, President and CEO of KEES, a nonprofit executive search firm. “And today we see that same level of challenge in finance and direct service provider roles.” The reasons are clear:

• • Leadership transitions: Many nonprofit executives are retiring, leaving boards to manage leadership change without a deep bench of successors. Learn more about Why Nonprofit Leaders Are Walking Away and What’s Driving The Change
• • Competition for skills: Nonprofits are recruiting from the same talent pool as corporations, which can often offer higher compensation.
• • Changing workforce expectations: If nonprofits don’t adapt, they risk losing strong candidates for new roles as well as current employees. Today’s professionals seek flexibility, career development, alignment with values, and appreciation of a clear work/life balance.

For boards, this means the question of talent is not just an HR matter. While the board’s only direct employee is the top executive (CEO/ED/President), it is also accountable for setting vision and strategy for the entire team, including investment of resources in critical areas. Infrastructure (HR/Talent/Compensation) must be considered a critical infrastructure resource. It is central to the mission. Without strong leadership and a skilled team, even the most inspiring vision cannot be realized. Is your board prepared for these leadership changes? Learn more about navigating the departure of key leaders and building a strategy for long-term success.

The Board’s Role in Talent Strategy

Board members are stewards of the mission, but they are also responsible for ensuring the organization has the leadership and talent it needs to succeed. This responsibility goes beyond approving budgets or reviewing an organizational chart. It means:

• • Recognizing that talent is a strategic priority.
• • Holding leadership accountable for creating healthy, sustainable workplaces.
• • Engaging personally in identifying, cultivating, and attracting strong candidates, and empowering the team to hire the right individuals.

Too often, boards assume staff will “figure out” the hiring challenges. Today’s environment requires board members to roll up their sleeves and be part of the solution.

What Nonprofit Talent Looks Like Today

Attracting talent today requires thinking differently about what makes a nonprofit role appealing. Candidates want:

• • Purpose: Alignment with mission continues to be a major draw, especially for younger professionals. People want a job they want to work at each day.
• • Healthy culture: Transparent communication, inclusive leadership, and attention to personal and workplace well-being.
• • Flexibility: Remote and hybrid options are increasingly non-negotiable.
• • Professional growth: Clear opportunities for learning and advancement.
• • Competitive compensation: The world is more expensive, yet many nonprofit roles are paying what they paid 15 years ago. Wage inflation is real. It must be factored in when a board approves budgets.

Boards should work with leadership to ensure that these factors are built into the employment experience.

So, what can board members do? Here are concrete ways to play a role in finding and keeping talent:

• 1. Champion Employer Branding
  Ensure the organization’s story, values, and impact are clearly communicated on its website, social media, and job postings. A strong employer brand attracts mission-driven professionals. Nonprofits with limited online profiles related to employee stories are self-limiting.
• 2. Support Competitive Compensation
  Be willing to have candid conversations about pay. Benchmark salaries at least every two years – KEES can help – and benefits to ensure the organization is not unintentionally pricing itself out of the talent market.

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Looking Ahead

The competition for nonprofit talent is unlikely to ease anytime soon. Demographic shifts (birth rates and age of working people), economic pressures, and the evolving nature of work will continue to test organizations. With intentional action and in partnership with the executive team, boards can turn this challenge into an opportunity.

By elevating talent as a strategic priority, aligning with today’s workforce expectations, and playing an active role in recruitment and retention, board members can ensure their organizations are equipped with the leadership and skills they need to thrive.

In the end, the mission and delivery of programs, regardless of sector, depend on people. Programs, fundraising, and impact are only possible when nonprofits have a committed and well-equipped team in place. For board members, this is not a side issue. It is one of the most important ways you can serve your organization with the realities of the market today.