When a nonprofit loses a C-level executive, their absence can disrupt the operations of the organization if the role is not backfilled quickly. Losing a key executive can throw a nonprofit into chaos with mounting pressure on the remaining team members and stalled progress on the mission. Nonprofit organizations often have to creatively stretch their resources, and it’s not uncommon for executives to wear multiple hats, making the organization more vulnerable during times of transition.
To protect the health of the organization, it’s important to backfill executive roles as quickly as possible. There are a few different ways to go about it, each with its own benefits and drawbacks.
In this article, we’ll compare three options and explore why fractional staffing can be a powerful solution for nonprofits for filling executive roles quickly and with flexibility.
Nonprofit Executive Staffing: Fractional Hiring vs. Traditional Recruiting vs. Job Boards
When you need to fill an executive position in a nonprofit, there are three main options available. You can handle the entire hiring process on your own by posting the position on nonprofit job boards. Alternatively, if you don’t have time to manage the hiring process, you could hire a traditional staffing agency that specializes in nonprofit executive search services.
But with the rise of fractional staffing, another option is emerging that can help nonprofits mitigate the risks of hiring the wrong person or letting a critical role go unfilled for too long.
Let’s take a look at the pros and cons of each of these options, starting with fractional hiring.
Fractional Hiring for Nonprofit Staffing
Fractional hiring refers to hiring an individual for a fraction of the time a full-time employee would work, and it’s a staffing strategy that is rising in popularity, especially for organizations who are looking for cost-effective ways to access executive-level support. Often, fractional executives provide an average of 20 to 25 hours of support each week to their clients.
Fractional staffing agencies provide fractional executive placements by matching clients with candidates from a vetted talent pool. Many agencies charge a one-time placement fee between $1,000 – $2,000, significantly less than the fee charged by traditional staffing agencies. Additionally, some fractional staffing services refund the placement fee if the engagement continues at least six months — which is shorter than the average length of a fractional staffing engagement. Most fractional executives work remotely, giving nonprofits access to the best talent no matter where they are located.
Unlike with traditional staffing agencies, you don’t need to provide a job description. You don’t even need to decide ahead of time which role you want to fill. The fractional staffing firm will meet with you to assess your needs, determine which type of fractional executive would be the best fit, and will then present a shortlist of candidates from their highly vetted talent pool to you for an interview. If you find a good match, you’ll sign a contract with the fractional staffing agency.
Benefits of Fractional Hiring for Nonprofits
The biggest benefit of the fractional staffing model is the speed with which you can fill executive vacancies. It’s by far the fastest, most reliable solution for filling executive-level positions with a qualified candidate who can step in and immediately begin to make an impact. The average time from your first inquiry to your fractional executive’s first day on the job is just 10 days.
The hiring process is very streamlined, making it ideal for filling interim positions where every day of the executive’s absence jeopardizes the organization’s mission.
Fractional staffing is also very flexible and low-risk. You can increase or decrease your fractional executive’s hours from one month to the next if your needs change, and most contracts allow you to cancel with just 30 days notice. If you’re hiring a fractional executive as an interim executive while you search for a permanent hire, this makes it easy to cancel or decrease the fractional executive’s hours as soon as the new team member is fully onboarded.
Lastly, fractional hiring is a cost effective solution for growing nonprofits who don’t yet need a full-time executive in a role such as chief operating officer (COO) or chief financial officer (CFO). The cost of fractional executive-level support starts around $3,000 to $5000 a month and fluctuates depending on the role and the number of hours needed each month. Many growing nonprofits could benefit from the expertise of a C-level executive long before they could afford a full-time C-level salary, and fractional staffing gives them an opportunity to bring on a leader with years of experience in the nonprofit sector for a fraction of the cost of a full-time hire.
Drawbacks of Fractional Hiring for Nonprofits
There are a few situations where fractional hiring wouldn’t be the most cost effective option for a nonprofit organization. If the organization is looking to backfill an entry-level position, a fractional executive will likely be more expensive than other options, reflecting the higher level of experience of the candidate. Additionally, fractional hiring is a great fit for filling a role on an interim basis, but if the engagement is likely to stretch beyond nine to 12 months, it may be more cost-effective to hire a full-time team member.
Traditional Staffing Agency or Recruiting Firm for Nonprofit Staffing
Traditional staffing agencies provide a variety of staffing services, including temp-to-hire, direct-hire, and executive search services.
When working with a recruiting agency, you’ll typically go through an onboarding process that could take anywhere from a few weeks to a few months as the agency gets to know your company and your needs. Then they’ll take your job descriptions and post them on job boards, promote the listings, do other outreach to find candidates, and do preliminary candidate screening for you.
Benefits of Traditional Staffing for Nonprofits
Traditional staffing agencies are often very good at bringing well-qualified candidates since they don’t just rely on job boards. Recruiters proactively search for candidates, typically have an expertise in specific industries or roles, and even approach candidates who aren’t actively looking for a job. For organizations that have high turnover of entry-level or mid-level positions, the traditional recruiting model can be a good fit because it can offload a significant part of the burden of hiring onto a capable third party.
Drawbacks of Traditional Staffing for Nonprofits
The biggest drawback of working with a traditional staffing agency to fill an urgent executive role is time. It typically takes three to six months to hire an executive when working with a staffing agency. Asking other team members to take on extra work for up to half of a year can lead to burnout, low morale, and additional turnover.
While recruiters can help with candidate sourcing, which on its own can take an average of 13 hours per role according to a 2023 survey by Indeed and Harris Poll, it’s still quite time consuming to work with them. You have to identify the role you need to fill, write a job description, and convene all the necessary stakeholders to make a smart decision. And on average, filling a nonprofit executive role via traditional methods takes six months.
The fee structure of traditional recruiting agencies can make them unaffordable for many nonprofits. Retained search firms typically charge 30 to 35 percent of the candidate’s first-year salary, meaning a placement with a $100,000 salary could cost $30,000 to $35,000. While some firms offer a one-year guarantee, either refunding the placement fee or providing a replacement if the candidate fails, an unsuccessful hire still results in significant time lost during the interview and onboarding process for the nonprofit.
Additionally, if you don’t need the support of a full-time executive and want to explore fractional hiring, a traditional staffing agency wouldn’t be a good fit. Most recruiters are only able to fill full-time roles and wouldn’t be able to connect you to candidates interested in fractional positions.
Job Boards for Nonprofit Staffing
The do-it-yourself option for nonprofit executive search is to post your open positions on a job board. You have to create the job description, manage the job post and review all of the applications, and then screen and interview promising candidates all on your own.
Benefits of Job Boards for Nonprofits
Job boards typically charge only nominal fees, and some job boards are free. If a job seeker with relevant experience and the right skills happens to see your job post, you could find a great new staff member this way.
Drawbacks of Job Boards for Nonprofits
The biggest disadvantage of handling the entire hiring process on your own via job boards is the amount of staff time involved. The proliferation of generative AI tools for job seekers means the volume of applications is higher than ever, requiring hiring managers to spend more time screening applicants. And unless you take the time to do strategic networking and proactive outreach to candidates who wouldn’t otherwise see your post, your job posting may not reach the top talent with the skills you really need. When relying on job boards, it still takes an average of three to six months to fill an open position.
How Nonprofits Can Leverage Fractional Staffing to Bridge the Gaps in Executive Hiring
Many nonprofit organizations find it helpful to hire a fractional executive as an interim executive when they are backfilling a C-level role. This gives them more time to make strategic staffing decisions. In fact, some of them even work with traditional nonprofit recruiters to find that full-time team member, while relying on a fractional staffing agency to provide a short-term solution to keep critical day-to-day operations running.
The departure of a C-level executive is often a good opportunity to take a step back and evaluate whether your C-suite structure is working well for you, or if it’s missing key roles or skill sets. Backfilling a C-level role with an interim, fractional executive gives you the time to make a thoughtful permanent hire.
For example, some nonprofits have an executive director and a COO, but don’t have a CFO and instead rely on a third-party service to handle their finances. If the COO leaves, the organization might consider bringing on a CFO instead of a COO, or hiring a joint COO/CFO, or even trying to find two new C-suite members. Instead of immediately posting a job description for the same position you’re losing, it can be helpful to take a step back to evaluate the overall strengths of the C-suite and reassess your staffing needs.
Fractional Executives Can Support the Hiring Process
In addition to plugging critical vacancies in your team to keep the day-to-day operations going, a fractional executive can also help you manage the search process for a permanent hire. A fractional executive brings an outsider’s perspective and can help you see which skills your current C-suite is lacking.
A fractional executive can support you through every step of the hiring process, from advertising the job, to screening candidates, to figuring out who needs to be involved in the interview process, to facilitating the final decision-making process.
Make the Right Hire With Interim Support from a Fractional Executive
At vChief, our talent pool includes experienced nonprofit professionals who have served in C-level strategy positions at organizations like Teach for America, the College Board, and Detroit Action. They are well-equipped to support the following nonprofit sectors:
- Education
- Social impact
- Advocacy
- Youth development
- Women’s health
- Nonprofit housing
- Workforce development
We specialize in filling roles such as COO, CFO, HRBP, and chief of staff. A chief of staff is a highly adaptable position that can be used to fill a wide variety of gaps in the C-suite. We’ve successfully placed chiefs of staff in nonprofit roles where they handled duties such as fundraising, human resources, and marketing.
With a fractional executive, you can get the support you need to immediately backfill an executive absence even on a lean budget. Answer six short questions to determine the right fractional executive for your organization or schedule a call with our team to discuss the right fit for you.
