• Zaneb Iqbal

Is Your Nonprofit the Next One to Face a Labor Shortage?

A new study from Forbes indicates an alarming trend that may culminate in a labor crisis by 2025. The study states: 45% of employees working in non-profit companies are likely to seek other employment opportunities in the next five years. Of that group, 23% intended not to continue with a career in the nonprofit sector.

Upon further inquiry, the reason underscored by respondents of the survey turns out to be the low pay scale in non-profits. Out of those respondents, 19% further concluded that nonprofits don’t offer suitable long-term opportunities.


12% also pointed out that businesses operating in the nonprofit industry are not well-managed.

“These results compelled industry employers to consider solutions to overcome the expected labor shortage.”


Some insight into Nonprofits


According to a report by Urban Institute, more than 1.8 million nonprofit organizations were registered in the U.S in 2020. This makes the nonprofit industry the third largest workforce sector in the U.S after retail and manufacturing.


The large workforce demand in nonprofits grew during the peak of the COVID-19 pandemic when there was a spike in the need for more human resources. Communities across the U.S. have an expectation that healthcare centers, nursing homes, and other nonprofits will be able to assist them during their hour of need.


The lack of employee-friendly financial wellness programs, coupled with a lack of adequate staffing, only added to the lack of services and delays despite increased market demand for non-profit services.


What can you do to attract and retain your dedicated labor force, while keeping budget restrictions in mind?

An easy and no-cost solution that employers can resort to is to provide employees better control over their earned wages.


Earned Wage Access - A Potential Solution

The recent pandemic completely changed the individuals' view of unforeseen events and health emergencies. People now demand better access to financial wellness solutions and don’t want to rely on predatory loans or pay advances.

Since nonprofits are heavily reliant on donations, government funding, and individual contributions, earned wage access (EWA) can be a powerful benefit to attract employees EWA allows employees to access their wages as they earn them. Without affecting the cash flow of employers, it enables employees to take control of their finances. It benefits nonprofits and their employees in the following ways:

  • Meets the salary access requests of employees and allows them to withdraw their earned salary before payday

  • It enables a favorable financial wellness benefit without disrupting the cash flow of the organization.

  • It helps HR managers to attract and retain the workforce.

  • It builds mutual trust and significantly leads to greater employee retention rates.

  • Improved employee retention means reduced turnover and hiring costs.

OrbisPay is here to help you serve your employees access their wages on-demand seamlessly.

Earned Wage Access comes in the form of liquid cash in the employee’s bank account and does not operate like a credit card. It solves the unique problem of how your staff gets paid and provides a wage access platform to make employees financially resilient.

If your nonprofit organization is looking to overcome its labor shortage or is struggling with hiring and retention challenges, it’s time to consider our wages-on-demand solution.


You can request a free demo for your nonprofit today!

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