During the Chronicle of Philanthropy’s on-line discussion on the recession and the non-profit sector, Richard Marker, principal at Marker Goldsmith Philanthropy, was asked about the agency management strategy of putting employees on contract. His advice, given my own experience, was excellent.
My own view is that it is a short term savings to reduce support for those you can still employ. It is better to fully invest in fewer employees than short change and antagonize many.
When I managed an organization during a recession, we quickly learned to get the bad news out of the way, reduce staff, and assure those who remained that it was our expectation that they would continue to have a job. The steady drip-drip-drip of bad news sets up uncertainty throughout the organization, damages morale, and virtually guarantees that you will lose your best people-those you most need during the bad period.
