Trends & Issues:
Small nonprofits: A big part of our sector
This report is based on the results of the first major quantitative study of the paid workforce of the Canadian nonprofit sector, conducted by the HR Council in 2008. More information on this study and its methodology is available on the Labour Force Study project page.
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What do we know about small nonprofits in Canada?
Canada’s nonprofit sector is mostly made up of small organizations. There are about 54,000 of them. Three-quarters of nonprofits (74%) have fewer than ten employees and over half of Canadian nonprofits (53%) have fewer than five employees (see Figure 1).
Figure 1
Small organizations by area of activity
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More than a third (35%) of the sector’s small organizations are religious organizations, which tend to be long-operating and affiliated with larger bodies (national churches, for example). Their characteristics colour the data on small organizations. For instance, the average period of operation for small nonprofit organizations in Canada is 43 years; small religious organizations exert a strong upward pull on this average, as their average period of operation is 71 years. Similarly, only about three in ten (32%) small religious organizations operate independently, as compared to eight in ten (79%) other small nonprofits (in sports and recreation, health and social services, development and housing, and other areas of activity).
What do we know about the employees of small nonprofits?
Approximately 168,000 Canadians work for small nonprofits. They outnumber the combined teaching staffs of all of the country’s universities and colleges.
In a random group of 100 employees of small nonprofits you would find:
- 75 women, half of them more than 45 years old
- 25 men, half of them over 50
- 81 people in “permanent” jobs; 54 working full-time and 27 working part-time
- 19 people whose jobs have a fixed end date
- 17 senior managers and 16 mid-managers/supervisors
- 33 support staff, more than half of them in part-time jobs
- 32 professionals and paraprofessionals
- 30 workers with children 17 or younger
- 4 union members
- 88 people with post-secondary education; 40 of them have a university degree
- 60 people who work in one or two person shop
- 36 people who have worked in the sector for 10 years or more
Employees are committed to the cause and they are well satisfied with many aspects of their work
Employees of small nonprofits are committed to the missions of their organizations. They believe in their organizations’ causes and derive a lot of satisfaction from their work. While job satisfaction is generally high among those who work for nonprofit organizations (4.25 out of 5 on average), those who work for small organizations report even higher levels of satisfaction with their jobs (4.4 on average). This satisfaction dovetails with the commitment paid staff feel to the missions of their organizations: nine in ten (90%) describe themselves as strongly committed to the causes their organizations support.
In addition to feeling good about the nature of the work they do, people who work for small nonprofits report high levels of satisfaction with the influence they have on decision-making, the recognition they receive for their work they, and their relationships with colleagues (both peers and managers).
Areas of greatest satisfaction:
- Influence on decision-making
- Recognition
- Amount of responsibility
- Relationships with supervisors and colleagues
Training: a source of lower satisfaction
One area of relatively low satisfaction for employees of small nonprofits is training and professional development. On average, employees rate their professional development opportunities at their current organization at 3.5 on a five-point scale. This may reflect concerns about the quality of professional development opportunities available to them, but for many it could reflect the simple absence of opportunities. A substantial minority of paid staff in the nonprofit sector (44%) say they had no opportunities for professional development at all in the twelve months prior to the survey
What challenges do small nonprofit employers face?
Recruitment: a common challenge
Recruitment is a challenge for a many small nonprofits. Of the ones that reported recruitment activity over the year (56%), four in ten (43%) say that it was at least somewhat difficult to recruit qualified paid staff. Those who face recruitment problems most often blame a lack of qualified applicants or the low salary their organizations are able to offer.
Recruitment problems are likely to result in more difficult conditions for existing employees since many organizations that are unable to recruit a qualified applicant tend to distribute the empty position's work among other staff, or hire a less qualified applicant who may require more support in carrying out his or her work. We need to be concerned that recruitment challenges may diminish satisfying aspects of working in small nonprofits, or amplify the less satisfying aspects.
| What if small nonprofits cannot recruit a qualified candidate? |
| Existing employees share the job responsibilities |
| Volunteers do the work |
| A less qualified applicant is hired |
Management is a big job in small nonprofits
Most often, HR management is one part of a busy executive director’s (or other manager’s) job. Only about one in ten nonprofits has a staff member dedicated to human resources (see Figure 2).
Figure 2
Who handles HR in small nonprofits
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Given that it is often just one of a manager’s many responsibilities, HR faces stiff competition for their time and attention. HR also competes for financial resources with other small organizations. Perhaps we should not be surprised that three in ten small nonprofits report that over the past twelve months they have not done anything to make their workplace more attractive to current and prospective employees.
Skills needs are changing
More than nine in ten small nonprofit employers (93%) believe that their current team has the skills they need to meet their organization's needs. Still, employers and employees alike perceive an emerging need for more skills associated with computers and information technology, financial management, fundraising, and marketing to ensure that small nonprofits continue to have the talent they need to operate successfully.
Thinking about the jobs they currently have, employees in small nonprofits suggest there is room for improvement in their skills in some areas: fundraising/resource development, marketing, finance and HR/personnel management. Thinking about the jobs they hope to have in the near future, they put skills related to computer/web/IT at the top of the list.
For small nonprofits to meet evolving needs, we have to cultivate new skills among existing employees and attract skilled candidates from the talent pool of graduating students and those currently working in other sectors.
Why do these findings matter?
Most nonprofits are small. These organizations have their own dynamics (for instance, the organizational “ladder” is often just a rung or two high) and they manage very differently from day to day than larger organizations do. By understanding how small organizations operate and how they manage their employees — and by understanding the characteristics and experiences of employees in small nonprofits — we will be better equipped to:
- Highlight what makes working in small nonprofits appealing to prospective employees so recruiting will be effective
- Promote the development of training opportunities that are valuable and feasible for people working in small nonprofits
- Help employees find ways to be challenged and make the most of their careers in small organizations
