Human capital inflow in nonprofits: Entry‐level employees’ sector shift

Abstract

Although recruitment and retention of qualified employees are some of the biggest challenges in the nonprofit sector, nonprofit organizations must maintain human capital inflow due to its significant impacts on organizational success. Through person‐organization value fit, this paper explores the factors that influence labor shifts from the public or for‐profit sector into the nonprofit sector in the South Korean context. Specifically, the effects on the likelihood of employees switching to the nonprofit sector from the perspective of eight job satisfaction measures and three education–job match measures are investigated. Two groups of employees (those whose career started in the for‐profit sector and those starting in the public sector) are compared. Results indicate that there is substantial variation between the two groups. In particular, intrinsic job satisfaction has completely different effects on those working in the for‐profit sector than on those working in the public sector regarding their likelihood of having experienced an intersectoral shift into nonprofits. The more public employees are satisfied with intrinsic job rewards, especially job reputation, the more likely they are to move to nonprofits. These results suggest that when employees in the public sector are satisfied with intrinsic rewards they tend to pursue greater intrinsic satisfaction in the nonprofit sector. This paper also reports that education–job match is only significant for those whose first job was in the for‐profit sector.

Human resource management, employee engagement, and nonprofit hospital performance

“…Nonprofits also experience some particular HRM challenges that highlight the need for continuing research. These challenges can include high levels of turnover (overall and in often low‐paid front‐line work), difficulty attracting qualified professionals (as extrinsic rewards may be higher in the public or private sector), career development and promotion paths (as many nonprofits are relatively lean on staff and have fewer avenues for development and promotion), and overall motivation and retention over time (Abzug, ; Ban, Drahnak‐Faller, & Towers, ; Guo et al, ; Kang, Huh, Cho, & Auh, ; Preston, ; Selden & Sowa, ; Suh, ). While the connection many nonprofit workers feel toward their organizations and their missions brings many workers through the door, deficiencies in HRM practices and the effective management of workers can hinder the ability of that initial connection and mission attachment to keep employees motivated and retained (Brown & Yoshioka, ; Brown, Yoshioka, & Munoz, ; Kim & Lee, ).…”

Past work experience and organizational assimilation in nonprofit organizations

“…Elements of NPOs may facilitate their adjustment by offering more opportunities and encouragement. For example, due to lesser availability of resources, many workers perceive NPOs to offer workers more job autonomy and opportunities for skill development (Lee & Suh, ; Suh, ). Newcomers entering their first full‐time position are expected to be more versatile workers, ready to pitch in on a variety of responsibilities to support the nonprofit's cause (Borzaga & Tortia, ; Dempsey & Sanders, ).…”

“…Newcomers entering their first full‐time position are expected to be more versatile workers, ready to pitch in on a variety of responsibilities to support the nonprofit's cause (Borzaga & Tortia, ; Dempsey & Sanders, ). Fortunately, those who join NPOs may be more motivated to take ownership of their roles because of the personal growth opportunities they offer and NPOs also tend to be more supportive of workers' career development by encouraging individuals to undertake a variety of tasks (Suh, ). In addition, NPOs offer interesting work and more opportunities for workers to challenge their skill sets (Onyx & Maclean, ).…”

Change in Governance in Non-Profit Board of Directors as a Key to Effective Performance

“…Under the first one there are implied those benefits derived from the satisfaction an individual receives from performing a task (autonomy, achievement, social contacts, opportunities to learn), while the latter means those given by others (wage, promotion, job security). Literature findings provide that public and non-profit employees are similarly motivated by intrinsic rewards (Suh, 2018).…”