Are you familiar with Henry Ford’s $5 a day wages? They were revolutionary at a time when $2.25 a day was a decent wage. Ford did this for two reasons: higher wages meant lower turnover and increased loyalty.
Before the wage increase, Ford was hiring 52,000 workers just to keep a workforce of 14,000. Sometimes, people would quit in the middle of a shift to find a better job, and then the line would halt and waste production time. Considering the cost of training new workers and a low production rate, Ford decided that it made more sense to simply pay his employees more to motivate them to stay.
And Ford didn’t just pay them a high wage—he made sure it was higher than any of his competitors. Because of this, employees at the Ford Motor Company thought they had a great deal at their factory. It generated loyalty and goodwill among his workers, and consequently, Ford built up a deep-rooted workforce.
Budgets can be tight at a nonprofit, and in order to do more with the money you have, it can be tempting to pay your staff the bare minimum. However, unless your employees are extremely passionate about your mission, this can cause a high turnover rate. You may find yourself constantly interviewing and being short-staffed, which is a huge strain.
Though you think you’re being frugal, how much money are you actually saving after you figure in the costs of hiring, training, and constantly establishing and reestablishing your staff?
Also, you get what you pay for. Skilled staff and talented fundraisers don’t work part-time for minimum wage. If you want to invest in the future of your organization, you need to invest in the people who run it. Having experienced, loyal employees will, in the end, save your organization money!
Dickerson, Bakker & Associates can get you more from your team. Call or email our office to connect with a consultant about finding and retaining the best employees for your nonprofit. Oh, and by the way, if you need more money to pay for those top-notch employees, DBA can also help you increase your fundraising effectiveness.