Rightsizing, as opposed to downsizing, is a movement to change the perception of the need to reduce the size of a workforce. And for many nonprofits, the number of people working will directly affect the organization’s ability to perform the work. There will often be a choice between operations and staffing, and it usually comes down to available money.
Rightsizing means that you’ve created a staff-to-work ratio that is the right size for your organization.
A more optimistic interpretation of rightsizing can be called flexible rightsizing. Flexible rightsizing means providing alternative work arrangements to employees instead of laying them off or downsizing. This method helps a nonprofit scale down or up, depending on the demand for their services, without losing valuable employees.
Companies using rightsizing models offer a variety of options to full-time nonprofit employees who otherwise may have their jobs terminated. Employees could be offered any of the following:
- Sabbaticals: unpaid time off. Sabbaticals, or furloughs, may be offered to skilled employee who would be difficult to replace or to seasonal employees when the workload is expected to slow down.
- Telework: allowing employees to work from home. Some organizations find that by allowing more employees work-from-home arrangements, they can shift to smaller offices and save on overhead and related expenses without sacrificing productivity. In fact, productivity may go up!
- Reduced workweeks: reducing the number of days worked per week. Reduced workweeks may shift some full-time employees to part-time hours or may decrease part- time hours. This is a common arrangement for nonprofit organizations.
- Job sharing: two employees share one available slot. Job sharing may coincide with flextime, in which employees work flexible hours according to their availability and job needs.
Nonprofit organizations know that downsizing can pose hardships for many families. By offering flexible rightsizing, they hope to soften the blow and maintain top talent. In some cases, it’s enough to keep benefits and income for a family until work increases. It’s a compassionate way to run an organization and many employees willing to work for the nonprofit sector understand the necessity of creative employment arrangements.
Do you have questions about rightsizing your nonprofit? Contact us today to learn more.
To learn more about how our firm can serve your nonprofit organization, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
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