Why Nonprofits Should Have a Convertible PTO Benefit

Traditional benefits just aren't cutting it anymore.   

 Only 61% of employees say their employees provide benefits for their personal and household needs. Moreover, there's a disconnect between how employers and employees perceive benefits satisfaction—83% of employers say their employees are satisfied. In comparison, only 62% of employees say they are happy with the benefits their companies offer    

 Today's workers want flexible benefits that allow them to create more personalized benefits packages to meet their current needs—70% of employees are interested in customizable benefits, up from 67% pre-pandemic.  

 This is especially true in the nonprofit industry.   

The state of the nonprofit industry   

The nonprofit industry employs approximately 6.3% of the U.S. workforce and has been hit hard in the past few years. Since the beginning of the pandemic, the nonprofit workforce has lost more than 1.6 million jobs.   

This has made it increasingly difficult for nonprofits to serve the community, both in terms of human capital and funding. A recent Salesforce trends report found that 75% of nonprofits have seen an increase in program demand, but 68% are dealing with a decrease in funding.    

Additionally, 42% of nonprofit leaders expect their employee turnover rates to increase, yet 80% don't have a talent retention strategy. The top reasons for turnover in the nonprofit industry include the following:   

  • Finding better opportunities elsewhere (49%)  
  • Lack of opportunity or career growth (44%)  
  • Disengagement with the culture or organization (35%)  
  • Benefits and pay (32%)  
  • Personal or family reasons (20%)  
  • Change career paths (19%)   

These circumstances have created an "all hands on deck" situation, preventing nonprofit workers from using their time off to meet the job demands. This has resulted in inflated PTO balances and frustrated employees.  

As a nonprofit organization, the fight for talent is more challenging than ever. Employees expect more from their employers, and the budget sometimes allows for pay raises.   

However, non-profit organizations can implement more flexible benefits to bridge the gap.  

That's why PTO Exchange is helping nonprofit organizations nationwide leverage a benefit they're already offering to provide their staff with the flexibility to meet their unique needs: convertible PTO.   

Convertible PTO is a flexible, voluntary benefit allowing employees to turn unused PTO into financial wellness and social well-being benefits. These include student loan payments, emergency cash, retirement contributions, travel, and more.  

Our 2021 survey found that 83% of employees would be interested in convertible benefits. This aligns with the 2021 EBRI Workplace Wellness Study results, which found that 25% of employees said a PTO conversion plan would be a valuable improvement to their employer's benefits program.     

With convertible PTO, nonprofits can boost employee morale, engagement, and productivity, thereby reducing turnover. A recent Gallup poll found that 73% of disengaged employees actively sought other employment compared to only 34% of engaged employees.   

And since it already uses employees' benefits, there are no added costs for the organization either. Employees get more flexible benefits from their employers, and employers save money.  

Benefits of convertible PTO for nonprofits  

There are several benefits of adding a convertible PTO program for nonprofits, including:   

  • Set your organization apart for recruiting and retention  
  • Provide flexibility for an increasingly multi-generational employee base   
  • An innovative, employee-friendly benefit that reinforces your company as a great place to work   
  • Drive down bloated PTO liabilities with no incremental increase to HR spend  
  • Develop financial wellness and social well-being programs to help employees establish responsible fiscal behaviors  
  • Quick and easy implementation with leading payroll systems.   

Add convertible PTO to your benefits stack  

PTO Exchange is the first benefits platform that allows nonprofit employees to self-direct the value of their unused PTO for personal needs. Contact us today to learn how we can help nonprofit organizations increase employee engagement, retention, and loyalty while reducing balance sheet liabilities and enforcing a positive culture.   

Published on Jun 07, 2024 by Josh Reinhard

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