Succession Planning for Nonprofit Staff Positions
One thing that is true for all organizations is that staff never stays the same. Even the most stable organization will experience turnover eventually, whether it is from retirement, an employee taking a new job, or the organization letting an employee go. While it is hard to think about, nonprofit organizations need to be prepared by engaging in succession planning for their key staff positions.
Here are some key considerations for succession planning for nonprofit staff.
Identify the critical positions
The start of succession planning includes identifying which key roles and positions are crucial and will put the organization in a difficult situation if they are not filled quickly. Those are the positions to focus on for planning.
Since there are many different circumstances that can lead to staff turnover, your strategies around succession planning need to consider both planned and unplanned departures. The course of action for a founder who gives a six-month notice for retirement is very different from an employee who walks into your office and quits effectively immediately. While not every detail can be planned in advance of a key staff member’s departure, the more prepared the organization is, the better they can manage the transition.
Know why it matters
It is important to keep in mind the reason for succession planning, which helps honor the commitment and hard work of past staff while taking action to ensure the future of the organization. Succession planning isn’t always easy, especially if you’re talking about long-time staff members or the founder of the organization who serves as executive director.
Succession planning doesn’t aim to push anyone out the door before they’re ready. It’s designed to protect and support the organization when staffing changes happen. In some cases, there are lots of emotions involved in these discussions. It’s important to acknowledge that but also stay focused on why it matters.
Think through the process
Succession planning involves thinking a lot about processes. The hiring process and onboarding process are rarely the same from one organization to the next, and they may not even be the same from one position to the next within your organization.
Think through questions like how far in advance to start an executive director search, whether you want to promote from within or hire from outside, and to what extent you want the new employee to be able to shadow the outgoing employee.
These are all questions related to planned departures where you have some notice that a key staff person is leaving. In some cases, you may want an incoming director to shadow the outgoing person for several weeks. In other cases, you may prefer to allow the outgoing director to leave and the new director to forge their own relationships, path, and leadership. Putting some thought into these questions in advance can help ensure decisions are based in sound judgment rather than the emotions of the moment.
“The transition time might be perfect for making changes to the position and how it functions, so be sure to think about where in the process you review the job description and responsibilities.”
The transition time might be perfect for making changes to the position and how it functions, so be sure to think about where in the process you review the job description and responsibilities. What qualities are most desired in a new leader? What is non-negotiable and what is open to change?
Cross-train key positions
For unplanned exits, a key to success is cross-training and knowing who in the organization can cover the most important job functions until the vacant key role can be filled. In many of our policies, we include that if the executive director is unavailable, the director of operations can step in and act as the executive director in the short term. The goal here is to keep the organization running while next steps are taken.
As part of your succession planning, make a list of which positions can step in to make decisions for the organization and develop a cross-training plan to ensure backup for anything related to finances, programming, marketing, or other critical efforts.
Don’t plan to hire board members
There is one pitfall of succession planning to avoid. The plan should never be to hire a board member, as it is a conflict of interest that has legal and financial ramifications. Unfortunately, some people will seek board positions with the intent of taking on the executive director role when it becomes vacant.
Sometimes it works out to hire a board member. However, it should never be the plan, and you must consult both your attorney and your CPA to be sure that all conflicts of interest are resolved, including reporting requirements on tax form 990.
Succession planning for nonprofit staff positions is an important aspect for any nonprofit organization. Thinking about the future without a founder, much-loved leader, or another key employee can be difficult for some nonprofit organizations, but proper succession planning can honor their legacy and continue their work.
If you need help understanding and navigating the succession planning process for nonprofit staff, our team can help with succession planning training for your board and your staff. Reach out to us today for more information.
