Turnover and Retention in Nonprofit Employment

Abstract

Korea’s nonprofit sector has undergone a sudden expansion in the last decade and its nonprofits experienced high employee turnover. This study is the first in Korean literature to examine workforce shifts in nonprofit organizations and explore influential factors that explain job changes from the nonprofit sector to other sectors. Using a three-wave panel data set of community college/university graduates, the Graduates Occupational Mobility Survey, we conducted a discrete-time survival analysis with the dependent variable of actual turnover. Our findings indicate that over half of employees left nonprofits within a year, and the majority found a new job in for-profit organizations. Different factors predicted turnover to for-profits, government agencies, and educational or research institutes. Age, wage level, employment type, and the size of nonprofit organizations explained employee shifts. Satisfaction with one’s overall job, job content, social reputation, and opportunities for career development were significant predictors. Implications for nonprofit organizations are discussed.