Employers have been hearing about the “silver tsunami” for decades, a term coined to describe the increasing number of adults reaching retirement age. Those employers that haven’t yet been impacted by a retiring workforce won’t be insulated for much longer. Between 2024 and 2030, approximately 30 million Americans will turn age 65. This cohort represents the youngest, largest, and last group of Baby Boomers to reach retirement age.
As many employers have already found, the large numbers of this retiring workforce can lead to a tremendous loss in knowledge for organizations that aren’t prepared. Associations in particular face the potential for a deep loss of knowledge and of the vast network of connections that form the foundation of any strong association.
Yet nonprofits may be tempted to put off preparations for managing the challenges that come with their professionals’ retirement. Finding the right candidate who can bring both leadership and a wealth of industry contacts can be a daunting challenge. In addition, this process can be costly, ranging from the cost of knowledge documentation strategies to the expense of headhunters.
However, it’s important for nonprofits to start having conversations around and making plans for retirement today. Proactive succession planning and knowledge transfer strategies will be essential for nonprofits to maintain their expertise and effectiveness as Baby Boomers retire.
4 Strategies for Nonprofit Succession Planning
While the succession planning process can seem daunting, there are clear places to begin. Below are four strategies that can help nonprofits begin preparing for a change.
1. Start documenting and preserving institutional knowledge. The number one thing for nonprofits to begin to do today is begin documenting institutional knowledge using multiple media strategies. Video, in particular, can be useful for training and guiding the implementation of new systems. When paired with a written format, nonprofits can better deliver information for all types of learners.
As you consider various strategies for preserving knowledge, it will be important to consider differences in learning for younger generations moving into senior roles.
2. Reexamine your business continuity planning. A business continuity plan outlines the steps an organization should follow in the event of a business disruption. In essence, the biggest difference between these plans is that succession is planned whereas a business continuity plan addresses unexpected risks. As a result, nonprofits may find that an organization-wide continuity plan can help fill some of the gaps that a formal succession plan would address. Developing this plan can spur conversations at the executive level about cross-training and other strategies for ensuring organizational continuity and future growth.
3. Prioritize internal staff development. The best-case scenario for succession is to have an internal team member step into a new role. These team members already have much of the knowledge regarding nonprofit’s goals and needs. To help prepare these team members, nonprofits should consider investments in leadership training and related professional development to equip employees for more management responsibilities.
4. Consider advisory roles. Transitions don’t have to be abrupt. For example, nonprofit leaders can continue to deliver valuable insight through advisory roles or through service on the board of directors. In this way, incoming leaders can build up their connections and industry knowledge while still having access to a powerful resource. These can be part-time roles that enable team members to transition gradually and nonprofits to balance investment in staff development.
Of course, none of these strategies can be implemented if your nonprofit’s team members aren’t willing to discuss the possibility of a transition.
Beginning Conversations Around Succession
Conversations about change can be difficult for everyone involved. Yet it is essential to have these conversations early on to ensure a smooth transition for everyone involved. That said, it may not be appropriate to ask directly about retirement. Instead, consider beginning this dialogue by talking about succession planning and redundancy across roles. This opens up the broad conversation about documenting processes and connections and creates a space where professionals may feel comfortable bringing up the possibility of retirement.
Conversations about retiree benefits can provide a similar segue. HR teams may consider hosting sessions on Medicare or other retirement benefits to encourage staff to begin thinking about what retirement might look like for them.
Having these conversations early is important to ensure that staff and the nonprofit at large are appropriately prepared for change. However, nonprofits should also consider honoring retiring staff with a celebration that provides clear finality and a positive sendoff.
It’s normal for retiring professionals facing a new chapter to have some trepidation about what comes next. As we move closer to retirement, it’s tempting to think that any replacement will not be able to provide the level of contacts or service, or expertise we did. And that may well be true. Instead, the next professional to fill this role will bring their own strengths to the role. Early and frequent discussions about knowledge transfer can help make that clear, but so too can a celebration of a leader’s legacy that honors their singular contributions.
These conversations can be challenging to start, but they are important to prepare nonprofits for the future. Fortunately, nonprofits aren’t alone when it comes to facing these tough conversations. Vault Consulting can advise nonprofits on strategies for ensuring a seamless transition into their next chapter. To learn more about our HR services, reach out to connect with one of our experts.
