Do you have the team you need to implement your strategy?
Far too many nonprofits look at their “Salary” budget line item as static. “This is all we can afford. We need to find the best person possible for this amount of money.”
This folks, is NOT being strategic. Sometimes, a strategy calls for a certain kind of talent on the team. And oft times, a certain kind of talent may cost more than what you are used to paying. If so, this is the time to look at reallocating expenses and/or getting creative about revenue generation so you can afford the right talent.
This issue is going to get particularly challenging for Boards during the coming years as many Baby Boomers – who have been significantly underpaid – retire. If you have an aging CEO then I suggest you do some market research ASAP on what it will cost you to replace her/him when he/she eventually retires (if they can afford to!). A lot of Boards have been shocked into reality as this has happened in recent years and the Baby Boom retirements have just started. (The oldest Baby Boomers turned 65 in 2011; those in the Baby Boomer peak year will turn 65 in 2022.)
FYI – this is going to affect more than just the CEO position and it is going to impact more than just salary. Overall benefit packages are going to have to be rethought as well.
If you want to effectively implement a strategy then you need the talent to do so. And that is what making a Mission Impact requires.
