Keys to talent management and development in NGOs

Talent management has become a key issue for organizations of all kinds, especially after the impact of the pandemic and the changes in the working environment caused by digitalization and remote work. Surveys of employees all over the world reveal that they have higher expectations of their jobs, and yet levels of commitment and retention are lower.  

Workers today expect more from the organizations for which they work: a positive working environment where account is taken of the holistic wellbeing of the employee; opportunities for learning and professional development; diverse and inclusive workplaces; more flexibility; and on top of this, a job with meaning and purpose. Therefore, the focus is now on the employee experience. 

The third sector is not immune to these demands. Yet although most organizations are in no doubt that their teams are their greatest asset, very few are devoting enough attention to talent management. For example, according to the results of the survey conducted within the framework of the Esade-PwC Social Leadership Program in 2023, only 13% of the NGOs taking part have a formal talent management strategy or plan for the coming months or years.  

The challenges facing the third sector 

One of the main challenges facing the third sector is the focus on the mission and “acting”, implementing projects and initiatives, which leaves little time for the support and development of people and teams. In addition to this challenge, there are other challenges specific to the sector as a result of which talent management is still not being appropriately addressed by many organizations: 

• One of the principal difficulties faced by the third sector is the scarcity of financial resources, and so salary levels are usually lower than those in the private and even the public sector. This imposes considerable limitations on attracting and retaining skilled talent, particularly certain profiles such as technology workers.  
• Furthermore, the altruistic nature of work in the third sector does not always lead to high levels of long-term commitment. Employees can feel demotivated if they do not see tangible results, if the workload is excessive, or if there are few opportunities for professional and personal development. 
• Moreover, many NGOs operate in difficult conditions, for example, in remote rural areas of developing countries, or with very limited resources. This means that it is a challenge to hire and retain people with the appropriate attitude and motivation, and so it is important to be mindful of the sacrifices that they are making on a daily basis in order to meet the objectives of the organization. 
• On the other hand, NGOs often have small teams and multifunctional employees. This means that professionals must be prepared to take on a wide variety of roles and responsibilities. Effective talent management involves the identification of versatile skills and the promotion of continuous training, in order to meet the changing needs of the organization. 
• Given that the third sector focuses on creating social impact, measuring and quantifying this impact can be difficult. Talent management becomes complicated when it is not possible to establish clear indicators of success, which hinders performance evaluation and effective assignment of resources. 

Strategies for talent management 

Nevertheless, although NGOs face undeniable challenges in talent management, we should not forget that a unique opportunity lies before them. For the fact is that the third sector is better positioned than the corporate sector in many key aspects of employee experience, such as the mission and purpose of the organization, flexibility and possibilities for remote work, more cooperative and positive working environments, challenging and motivating projects, and shared, more horizontal styles of leadership.  

Therefore, more than ever, the sector needs to build a value proposition that outlines its benefits as a field in which to develop a professional career, demonstrating all that it can offer: a mission and more besides. Some of the strategies for successful talent management in the third sector include: 

• Boosting our brand to attract the best possible talent. Despite their limited resources, NGOs can highlight their values and mission in order to attract individuals who are committed to their cause. Building a solid employer brand that emphasizes social impact and communicates a sense of purpose can be a crucial differentiating factor. 
• Highlighting the non-financial incentives that we offer in our remuneration system. Given that budgetary restrictions often limit the capacity to offer competitive salaries, organizations can focus on providing non-financial incentives, such as professional development opportunities, mentoring programs, labor flexibility, and a collaborative and rewarding work atmosphere. 
• Broadening our talent pool, taking note of both internal and external talent. The aim is to manage talent ecosystems, these being understood as structures composed of interdependent actors inside and outside the organization, who work to achieve both individual and collective objectives. 
• Valuing not only the experience, but also the potential of possible candidates, in addition to their cultural fit. Evaluation processes should no longer focus so much on the résumés of possible candidates, but also take account of other aspects, such as passion, competencies, or the capacity for learning and adaptation. 
• Strengthening our learning and development programs. Talent management must include the identification of critical skills and the implementation of training programs to reinforce these. Continuous training not only benefits teams but also improves the capacity of the organization to tackle complex challenges. 
• Building a positive organizational culture that integrates key values, such as diversity, feminist principles, agility and adaptability, and cooperation. Fostering a positive organizational culture is essential for retaining talent. Organizations must promote an inclusive environment that values diversity, offers opportunities for growth, and celebrates individual and collective achievements. 
• Improving our impact measurement and performance evaluation systems. Although measuring social impact can be complex, third sector organizations must strive to establish indicators of success and regularly evaluate the performance of employees. Constructive feedback and continuous adaptation are vital for improving organizational efficiency. 

In conclusion, talent management in the third sector presents unique challenges that require creative and adaptive approaches. Effective talent management in the third sector not only benefits the organizations but also strengthens their capacity to tackle the most pressing social problems.