A Push for Diversity

Nonprofit groups lag behind business and government in attracting diverse work forces, says Michael Watson, a top executive of the Girl Scouts of the USA.

Lack of diversity will put nonprofit groups at a big disadvantage as they try to serve society -- and as competition for talented workers heats up because many baby boomers are nearing retirement age.

Chief executives and boards of nonprofit groups can do much to change the culture of charitable organizations, and make diversity a priority, Mr. Watson says. In an online conversation, he will take questions about the specific steps nonprofit organizations can take to recruit and retain minority workers.

How Charities Can Recruit Diverse Employees (1/11/2007)

The Guest

Michael Watson is senior vice president for human resources at Girl Scouts of the USA and a member of the Nonprofit Sector Workforce Coalition Steering Committee, formed by American Humanics, Public Allies, and other organizations to help nonprofit groups focus on ways to recruit, retain, and cultivate diverse leadership. Mr. Watson has previously held human-resources positions at IBM, GE Capital, and Time Warner.

A transcript of the chat follows.

Stacy Palmer (Moderator): Hello. Welcome to The Chronicle of Philanthropy's discussion. We are pleased to have an expert on diversity recruitment and retention, Michael Watson, joining us today and we welcome your questions throughout the hour. To ask a question, just use the link on the page that says "ask a question." You don't need to be a Chronicle subscriber to participate in this conversation. Let's begin the conversation. Welcome, Michael.

Question from Stacy Palmer, The Chronicle of Philanthropy:
What specifically has the Girl Scouts done to increase hiring and retention of people of color? Can you tell us what has worked -- and what has failed?

Michael Watson:
The most important factor in our hiring and retention of people of color is the commitment of our CEO, Kathy Cloninger. When we have have openings at the senior level or at other levels in the organizations, it is a given that we present a diverse slate of candidates. If we happen to use a search firm, part of our screening is the firm's track record in recruiting and placing diverse candidates. We attend job fairs, diversity recruiting fairs and post our postions on sites that people of color view. We also inform a wide variety of professional organizations that people of color belong to of our openings and take other steps to ensure that diverse candidates know about our openings. Another factor that helps in retention of people of color is that they join an organzation that is diverse at all levels. For example, 44% of our CEO's direct reports are people of color. Our staff at our national hearquqarters consists of 48% of people of color, which exceeds the representation in our local area. People of color hold 48% of the positions on our national board. When people see that assignments, promotions, training and other experiences are done based upon merit it helps with retention. We also report our diversity progress to our national board annually. basis.

Question from Carl, Public school grant adm/corporate fundraiser/ public relations coordinator:
I read where there will be over 640,000 leadership positions available in non-profit orgs in the next 10 years, where will these positions be geographically and how diversified do you expect these positions to be? Raiser's Edge Sofware experience appears to be a requirement for this field, which I don't have because Excel and Access can be used in its place. Also, there is a requirement for large $ fundraising experience too; my max is $150,000. I am an experienced 4yr grant adm/corporate fundraiser/public relations coordinator, 1 yr corporate acct mgr and 8 yr senior mgr, plus I am a minority male with a MBA. Your suggestions and commments are appreciated.

Michael Watson:
The positions openings to which you are referring will be located across the country. The studies you reference refer to CEO and top level executive positions in nonprofit organizaitons. In terms of your career, continue to do research to determine what the requirements are for advancement. If Razor's edge is a requirement, find a way to learn how to become proficient in the use of this software. Similarly, join professional orgazanizations for fundraisers so that you can deepen your knowledge of fundraising and identify mentors who can help you guide your career. Most importanly, establish a track record of success and increasing responsibility. Being successful in your current role will make it easier for you to be considered for promotions or other opportunities.

Question from Nicole, small nonprofit:
Not to take you too far off the subject of staff, but do you have any specific pointers for nonprofits that are looking to recruit Board Members with minority backgrounds?

Michael Watson:
Recruiting people of color for board service is similar to recruiting staff. There is a large pool of people of color who have the skills you may be seeking and would be interested in board service. They have to be sought after and approached. Once you decide the types of skills you are seeking--marketing, finance, accounting, etc., you can contact professional organizations that people of color belong to. You can approch organiztions such as the National Association of Black Accountants, the National Society of Hispanic MBAs, INROADS alumni or numerous other organizations that may exist in your community. Talking to a wide variety of people and letting them know that you are looking for a diverse candidate pool will assist you and your board's nominating committee in identifying board candidates from underrepresented groups. Developing a diverse candidate slate for your board is much easier since the population of people of color in the professions has expanded significantly over the past few decades.

Question from Gail Hyman, nonprofit communications consultant:
How is the Girl Scouts using Web 2.0 to reach volunteers and girls? What examples can you offer for taking advantage of the new communications channels?

Michael Watson:
Girl Scouts uses a variety of online and interactive approaches to reach diverse populations of girls, volunteers and potential emplloyes. We are planning to use Web 2.0 to reach volunteers and girls since users expect to give input and create their own content. On Utube, for example, we have posted historical Girl Scout commercials.

Question from Stacy Palmer, The Chronicle of Philanthropy:
What advice do you have for leaders of small groups that can't afford to take all the steps that an organization like the Girl Scouts can undertake?

Michael Watson:
If you look at the best employers lists that Fortune Magazine and others develop each year, you will notice that size does not matter. The most important factor in being able to recruit and retain a diverse workforce is the commitment of the CEO and management and a willingness to create the best possible workplace. The primary reason that people leave organizations is their relationship with their manager. Selecting and developing managers who can effectively manage a diverse workforce is a key to success. The upcoming workforce also desires flexibility to balance their personal life with work. Flexibility can be offered by small and large organizations. Most of an employee's development is on the job. An employer of any size can provide challenging assignments, additional reponsibilities and quality feedback. Employees want to know that they are not just a number. In many ways, smaller groups have an advantage in employee retention.

Question from Elysse, workplace-giving federation:
Our nonprofit only has four staff, so we have no HR staff/resources. How can we get the message about inclusion to our board members without spending money?

Michael Watson:
Fortunately, there is a lot of information about diversity in a wide variety of publications if you need examples of best practices and business cases. What your board may be looking for is how you would connect diversity to improving your ability to serve the mission of your organization. Once they understand the connection, they will understand the importance of diversity. Commitment to having a diverse workforce is more important than the money spent.

Question from Stacy Palmer, The Chronicle of Philanthropy:
What specifically are businesses doing that you think nonprofit groups should do to step up their recruiting of people of color?

Michael Watson:
Busineses are investing much more in recruiting diverse talent. They attend the national career fairs, sponsor larger numbers of paid internships, are present on campus, place more ads and spend more time at the senior managmenet level discussion how to recruit diverse talent. They develop close relationships with the professional organizations that people of color belong to. They place ads in publicaitons like Diversity Inc. and other publications that reach diverse populations. The business community is very concerned about their ability to recruit and retain the best and the brightest employees given the number of upcoming retirements. They have made the investments to ensure that diversity is a top priority since much of the current and future workforce is represented by people of color. Nonprofits will have to do more of the same to compete.

Question from Roslyn, American Red Cross:
Have you had any success identifying and hiring fundraisers of color?

Michael Watson:
We have had success in identifying and hiring fundraisers of color. Our Senior Vice President of Fund Development is a woman of color along with one of our Vice Presidents of Fund Development. The pool of fund development candidates, however, is not highly diverse. We may need to approach this issue at a nonprofit sector level because there is a significant shortage diverse talent in fund development. We need to begin building a national pipeline or we will have the same challenges ten years from now.

Question from Stacy Palmer, The Chronicle of Philanthropy:
What advice do you have to people of color who are seeking nonprofit jobs?

Michael Watson:
People of color who wish to work in the nonprofit sector should identify what type of position they wish to pursue and which skills they possess are most transferrable. They can review jobs on the Chronicle of Philanthropy website and Idealist.org. They can talk to people who work in nonprofits to learn more. In addition, those interesrted in working in the nonprofti sector should identify the organizatins whose missions they feel passionate about and apply for openings or approach the organization directly regarding their interest. Increasingly, nonprofits are open to candidates from other from business and government who have the skills and commitment to help further their organizational objectives. Al the studies indicate that there will be a number of nonprofit openings to consider over the next few years.

Question from Lisa Jacobson, Land Trust Alliance:
Your article focuses on diversity, but racial diversity is only addressed. What can nonprofits do to include people in terms of socio-economic diversity?

Michael Watson:
I agree that socio-economic diversity is important. Nonprofits can recruit at a variety of sources to ensure that they have access to candidates who are economically diverse. You can select the location of the job fairs you attend, contact organizations that serve the employment needs of economically diverse communities and select schools that have economically diverse populations. American Humanics recruits a highly diverse candidate pool of college students who are interested in working in the nonprofit sector. Their students are committed and are represented by students who are diverse racially/ethnically and economically.

Stacy Palmer (Moderator):
We are about halfway through the conversation now. Please keep your excellent questions coming -- all you need to do is click the link that says "ask a question."

Question from Stephen Bauer, American Humanics:
Your article talks about CEO level buy-in to ensure a more diverse staff. What are some of the benefits to having a diverse staff and how you can help persuade your CEO to commit to this goal?

Michael Watson:
Some of the benefits of a diverse staff include a wider variety of perspectives, which can lead to more creative solutions. Since the success of an organization depends upon the quality of its talent, no organition can afford to exclude people of color who increasingly represent more of the society's most talented employees. With unemployment remaining low and the coming shortage of talent growing more severe, nonprofits are taking a change with their survival if they do not position themselves to recruit and retain the best talent from all segments of the labor force. CEOs are most concered about meeting the organization's mission. The organizatons that get the best talent will serve their missions; those that do not risk failure. CEOs also need to be concerned about succession planning, which goes to sustaining the capacity of the nonprofit organiation to meet the needs of society in the future. These are some of the arguments that will help the CEO understand the importance of diversity.

Question from Carlos, small nonprofit:
Given your declaration that much work must be on at the managerial level to support diversity and increase retention, what do you recommend organizations do to monitor the development and performance of managers?

Michael Watson:
There are a number of ways to monitor the development and performance of managers. First, clearly communicate to all managers the importance of managing and retaining a diverse employee population. Set performance goals that include good management practices, such as setting goals for employees, giving a high quality orientation, implementing development plans and similar actions. You can talk to the employees who are being managed to determine whether their needs are being met to determine how effective the managers are. You can also look at turnover. Are your high potential, diverse employees who work for a certain manager resigning? Are other managers good at retaining and developing diverse talent? If so, reward those who are managing well. You can also conduct surveys, focus groups and other practices to determine how employees are doing.

Question from Robby, theater company:
As far as hiring artistic staff, how do you recommend small theater companies and/or arts organizations go about recruiting minorities? Does the potential draw have anything to do with your organization's mission or focus?

Michael Watson:
If you wish to recruit people of color to arts organizations, you can begin by going to the schools they attend. The earlier you begin your recruiting efforts--high school, college and relevant graduate programs, the more likely it is that you wil be able to recruit diverse talent. You can also get the word out through community and other organizations. People of color are interested in the arts, but they have to be informed of the opportunities. Otherwise, they will go to work elsewhere.

Question from Phyllis A. Wallace, American Humanics:
Michael,

What collective groups in the nonprofit sector are working on diversity, including strategies to create an inclusive nonprofit sector at the Board, Sr. Managment, staff and volunteer levels?

Michael Watson:
The Nonprofit Sector Workforce Coalition is working on the issue of diveristy in the sector and welcomes new members. I do not know the names of other organizations that are working on this. Those who are interested in learning more about the Coalition should log onto www.humanics.org for more information.

Question from Karen de Lopez, Church World Service:
What are the best websites for advertising to recruit a diverse pool of candidates?

Michael Watson:
Karen:

There are about 80 websites that we have used to recruit diverse candidates. I will talk to our staffing team and post some of the better ones later today.

Question from Chris, national intermediary:
My organization peovides support to other organizations throughout the country, and we're working on developing strategies to recruit and retain qualified professionals to our field in the nonprofit sector in the coming years, and ensuring that that workforce is diverse. What strategies do you recommend for this kind of national approach?

Also, in marketing these opportunities to groups including those you mentioned (including to students with advanced degrees who are often coming out of school with significant debt), do you have any recommendations on how to best attract candidates to the many other benefits of nonprofit work, even if the salary and/or room for advancement is good but maybe not at the level that candidates could get elsewhere?

Michael Watson:
For your recriting strategy, I recommend that you consider the following:

1. What skills are you seeking? 2. In which cities do you wish to recruit? It is easier to recruit candidates if they do not have to move. 3. At which schools do you wish to recruit? Once you select the schools with diverse populations, you will want to contact the Career Placement office for assistance. 4. You should also contact American Humanics, which places college graduates who are interested in working in the nonprofit sector. You can reach them at 1-816-561-6415. 5. Select your best representatives to serve as recruiters 6. Outline the reasons someone would want to work for your organization. What experiences will they obtain? How will they be fulfilled by the work they will be doing, the difference they will make. 7. What type of workplace are you offering--is it flexibile, collegial, etc. This is an important factor in attracting talent. 8. In some cases, candidates may not stay forever, but they will want to know will they be better off professionally for having worked for your organization.

More people are making their employment decisions based upon the impact they can have versus the salary.

Question from Carly Hare, Community Foundation:
What are the best ways foundations and funders, both financially and through programs, can support organizations working on become inclusive?

Michael Watson:
Foundations and funders can support investment in managment and employee development. Nonprofit organzations will be able to better serve their mission if they invest in their most important asset, their employees. If nonprofits are able to develop their staffs, turnover will be lower, performance higher and the capacity to meet the expecations of funders will be enhanced.

Stacy Palmer (Moderator):
Thank you so much to everyone who participated in this thoughtful conversation about a vitally important issue. We will post some additional answers to your questions later today and we will continue to focus on this topic in The Chronicle. Send your ideas and comments about anything we can do to improve our coverage of the nonprofit world by writing to editor@philanthropy.com. Michael, thank you for providing your expertise and for being so generous with your time.