Nonprofits Engage Employees in the Conversation

Recently, I visited with two nonprofit organizations that shared their disturbing news with me – their funding was being cut. Substantially. These funding cuts meant reviewing already strapped budgets to see what other expenses they would have to eliminate. Services to its clients? Employees? Freeze or cut wages, or the few employee benefits they’ve been able to offer?

We discussed potential options. I was pleased to hear that the approach both organizations turned to first was communicating the news with their employees – appropriately, and at a high level. They talked WITH the employees (as opposed to talking “at” them) about funding issues and the economy. They brainstormed for ways to reduce expenses that were nice-to-have, but not necessary. In one organization, they held discussions with managers about ways to grow some of the services that could bring revenue into the organization.

Will these organizations still need to cut expenses, and maybe cut headcount? Sadly, they will most likely have to take these steps in the short-term. But by adding the conversations with the employees, they’ve taken some positive steps:

• Sent the message. The organizations let the employees know that costs had to be cut significantly. This isn't fun news to share. But when the cuts do happen, they will be less of a surprise to the employees.
• Engaged in a common goal. Conversations engaged their employees in working to be a part of the solution, which encourages positive conversations throughout the organization.
  
• Set the tone. The employees understand that the employers are actively doing their best to cut costs and save jobs. And ultimately, work more efficiently toward their established mission and purpose.
  

What other steps could an organization take to get the employees focused on helping be a part of the solution? Do you think that these were the appropriate steps for the nonprofit to take? What else would you suggest to organizations in this situation? 

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