The services sector and non-profit sectors have not been able to fully benefit from human resources, and on the contrary, this sector has not been able to overcome this problem and it has worsened instead.

Currently, humanitarian service agencies, non-profit organizations, and their supporters will have to acknowledge that effectively meeting the needs of their communities and advancing their missions in the coming years requires providing creative teams capable of achieving good results under difficult conditions.

However, the increasing focus on investing in talent is just one of three trends that non-profit organizations can follow. Among these trends are the changing demographic makeup of the workforce and the ineffectiveness of older workforce management, which will reshape your organization.

Here are three important trends:

Young, diverse leaders have become a force for change

The demographic makeup of the workforce is changing; in 2014, the number of young people surpassed the number of older individuals, and it is estimated that 75% of the workforce will be from the millennial generation or younger. For the corporate sector, this means that a large number of young people will take on leadership roles and become an active force for change. According to a report by “Global Global Human Capital Trends,” the millennial generation assuming more leadership roles heralds a promising future for purposeful work, continuous learning, and a strong focus on diversity, equity, and inclusion.

In contrast, the human services and profit sectors remain underdeveloped in this area, as one survey organization found that 42% of for-profit organizations will attract diverse talents. In reality, many organizations prioritize diversity, which is a positive step, but in practice, older individuals continue to dominate leadership roles in the non-profit sector, especially in the largest non-profit organizations. As a result, there remains tension between the workforce and the current state of the sector.

We expect to start empowering younger, more diverse leaders. This shift will not be a reaction to the myth that the profit sector is smarter or more strategic than the social sector, but rather a forced change aimed at responding to the growing competition for funding, support, and talent.

Workforce management systems are evolving and improving

All organizations recognize the limitations of manual processes and old workforce management systems, and the non-profit sector is no exception. In this regard, about 39% of participants in a survey conducted by a research organization chose to restructure management systems and programs and make them a top priority in workforce management for 2017. We expect to see a number of quantum shifts on the horizon in this area in the non-profit sector.

The shift towards high-skilled jobs that require "deeper expertise and analysis, more independent judgment, and better problem-solving skills" is the driving force behind the transformation in workforce management. While there are several options regarding workforce management solutions, it can sometimes be challenging to find the most suitable solution for your needs.

Lack of investment in talent has become a real risk in the non-profit sector

No one can be blamed for the lack of investment in talent, but the future is expected to witness an increase in supply and demand for talent investment. However, considering the issue of talent investment inadequacy as just a risk is not enough; non-profit organizations need to establish strategies, systems, and processes that will make the available resources more capable of attracting, developing, and further empowering them for leadership positions, thus retaining them.

In fact, leaders in the non-profit sector must seek help from donors and funders to invest in the talents their organizations need to be successful. As talent investment improves, the non-profit sector will be able to face many changes and challenges that the future holds. In light of this information, the following questions should be raised:

What will you do today to change the way your organization approaches workforce management?

What will you do in the future?

What are the ways you can take to ensure that this critical aspect of your organization operates effectively?

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Source: Spark Rock

Author: Kate Abernathy