On the Horizon: Profitable Collaborations Missed?
Peter Bachiochi
Eastern Connecticut State University
The object of this column is to discuss whats hot or whats on the
horizon for SIOP and for I-O psychology. In this issue Im going to take a
slightly different approach and discuss an area that I feel should perhaps be a
little hotter than it currently seems to be within our field. But before I
jump right in, Ive got a little quiz for you. Actually, Im going to give
you the answers, and with Trebekian arrogance I am going to challenge you
to come up with the right question (Dont even think of phrasing your response
in anything other than a question!).
The first answer: It accounts for 6.9% of the U.S. workforce and consists
of 10.2 million employees.
Okay, Ill give you another hint: It accounts for $621.4 billion in
revenues, making it 6.2% of the national economy. Still wishing you had a
lifeline?
One more clue: It consists of charities, foundations, social welfare
organizations, and religious organizations.
The correct question is: What is the nonprofit sector?
So What is the Nonprofit Sector?
Most people are surprised to discover just how large the nonprofit sector
really is. But with a little more background on the nonprofit sector, its
easier to understand how it plays such a large part in the U.S. economy.
Nonprofits fall somewhere between government agencies and businesses. Although
nonprofits are defined somewhat by the work they do, they are defined more so by
their tax status with the U.S. government. Section 501(c) of the tax code
outlines the types of organizations that are eligible for tax-exempt status.
Although there are many classifications of nonprofits, the most common fall into
a few broad categories.
Charities. These are the organizations that often come to mind when
people think of the nonprofit sector. Organizations like the American Red Cross,
Big Brothers Big Sisters of America, Special Olympics, and Habitat for Humanity
International are just a few examples. However, museums, orchestras, public
television/radio, and many hospitals fall under this umbrella as well. In fact,
there are more than 650,000 organizations in the U.S. comprising this part of
the nonprofit sector. They are all tax-exempt under Section 501(c)(3) of the tax
code.
Religious organizations. Over 340,000 religious organizations comprise
another large portion of the nonprofit sector. Churches, synagogues, mosques,
and other religious-based groups make up approximately one-third of the
nonprofit sector.
Social welfare or advocacy organizations. Section 501(c)(4) covers
more than 140,000 nonprofits that provide a broad range of services from social
work to public activism and education. Organizations such as the National
Organization for Women (NOW) and the National Association for the Advancement of
Colored People (NAACP) belong to this portion of the sector along with many of
the more local service organizations you see in your communities (shelters,
job-training centers, etc.).
Foundations. The nearly 40,000 foundations in the U.S. take on many
forms. Perhaps the most familiar are private foundations like the W.K. Kellogg
Foundation and others that use income from investments to make contributions to
other nonprofits. Community foundations, on the other hand, pool the resources
of specific municipalities to sponsor grants. Corporate foundations provide
similar support by making grants on the behalf of the sponsoring corporation.
Finally, operating foundations do not provide grants to other nonprofits but
rather sponsor their own charitable programs.
Professional and trade associations. Nonprofits that promote the
business or professional interests of a community, industry, or profession are a
smaller part of the nonprofit sector. Organizations like SIOP, chambers of
commerce, and the Rotary fall into this category.
If youre interested in more information about the nonprofit sector,
Independent Sector, a nonprofit coalition, has a wealth of information on their
home page (www.independentsector.org).
Much of the background for this article was gathered from their resources.
Learning About the Nonprofit Sector
My interest in the nonprofit sector is not entirely humanitarian, though, I
must admit. Last year I was asked by my university to coordinate a program that
would help graduates succeed in the nonprofit sector. At the time I knew very
little about the nonprofit sector and, frankly, part of the decision to select
me for the position was based on my willingness to spend 24 hours outside in a
box. Okay, let me explain (allow me a minor digression). Our campus chapter of
Habitat for Humanity had a fundraiser called a Shack-a-thon. We had to spend 24
hours outdoors in late November, and people pledged varying amounts for each
hour that we spent outside. As the advisor for the chapter, I joined the student
members for this fundraiser. As a result, the university officials figured that
if Im committed enough to sleep out in a box, I should be enthusiastic about
this new nonprofit program, too. Although I dont anticipate sleeping outside
in a box will become a part of any assessment centers in the future, it seemed
to be a pretty useful predictor in my case. But where was I?
Due to my lack of knowledge of the nonprofit sector, I immediately went to
the literature to see what was available to get me up to speed. Fortunately
there are many fine books on the nonprofit sector in the business and social
sciences literature. But as I was researching, I noticed that there was nearly
nothing in the I-O empirical literature about the nonprofit sector. This started
the wheels turning for me. I took a look through past SIOP programs and saw only
a handful (and it was a very small hand) of presentations/symposia that
addressed the specific needs of the nonprofit sector. I am encouraged by the
number of dissertations that focus on nonprofits, and I hope they make it
through the peer-review process to be published. But until then Im left to
speculate why this paucity of research exists, and Ive got a few thoughts and
many questions.
Given the scientist-practitioner model upon which we operate, research often
follows from (or coincides with) applied projects conducted in organizations. I
wondered if the lack of research that was available was a function of the lack
of applied practice taking place in the nonprofit sector. There are probably
many SIOP members who are active contributors to and perhaps board members of
their local nonprofits. But are we providing the nonprofit sector the same
amount/level of service that we provide the for-profit corporations that are
probably the primary source of our income as a field? Trust me, Im not
pointing any fingers, Id just like to hear what you think.
Challenges and Obstacles to Working with the Nonprofit
Sector
There are clearly obstacles to working with nonprofits. The extremely tight
budgets upon which the agencies run can be a major challenge. The annual cycle
of grants that keep many nonprofits in business may not allow for the
discretionary funds to conduct research or to improve HR processes within the
agency. The small size of many nonprofits (the average size is less than 10
employees) is an obstacle to research, but I see it more as a challenge. The
small N that one would encounter necessarily creates the challenge to use
alternative research models for conducting studies in such settings. More
qualitative approaches that better suit small-N situations would probably be
necessary. However, if I may be so bold, I-O psychologists tend to be very
poorly trained in qualitative research methods. Perhaps the need for more
qualitative methods in these settings explains the greater presence of nonprofit
research in the sociology research. My next question then is whether or not we
prepare our graduates with the qualitative research skills that are needed for
this sector?
Some might be tempted to say that the research and recommendations that work
for larger corporations should be equally applicable to nonprofits as well.
However, the size and context of nonprofits makes them unique in very
interesting ways. These differences actually make the nonprofit sector a
particularly ripe area for research. Nonprofits are often forced to offer
relatively low (and sometimes uncompetitive) wages for many positions. This can
have direct effects on recruiting and retention as well as other areas in which
I-O psychologists do research and provide services. On the other hand, the
missions of many nonprofits draw employees who have a connection to the
constituency being served by the nonprofit. For instance, abused women may feel
a stronger commitment to work in a womens shelter or someone who grew up
without a parent may be particularly attracted/committed to Big Brothers Big
Sisters. Nonprofits tend to be female-dominated businesses, which creates a
dynamic that is very different from most larger corporations. Perhaps this
demographic reversal makes it more difficult to attract men to the nonprofit
sector, but it may also make it more attractive to talented women.
Each of the above differences also raises questions of whether or not job
satisfaction, organizational commitment, and other job attitude models may apply
equally well to a scenario that seems to be very different from those typically
studied in existing research. It is distinctly possible that the context may be
different, and thus the psychological dynamics are also different. On the other
hand, the dynamics may be exactly the same and our current theories and models
may apply equally well to the nonprofit sector. This and the other questions
mentioned above are all empirical questions that could be tested via field
research.
New Directions and Options
There are many options available to make this research (and practice) happen
right now. For minimal or no cost, graduate programs could set up alliances with
local nonprofits to provide HR services with the understanding that research
data will be collected in the process. Such collaborations (and Im sure many
already exist at universities across the country) provide the nonprofit with
high-quality services while the students and faculty gain valuable experience
and data. I cant help but think that universities would find nonprofits
lining up at the prospect of receiving affordable HR consulting.
Another option that is available to SIOP members are small grants through the
SIOP Foundation. These grants may be enough to provide the materials needed to
conduct field research in a nonprofit. See the SIOP Web page (www.siop.org)
for more information about the Foundation.
Many SIOP members also provide services to nonprofits on a pro-bono basis.
Although this happens in an unstructured manner right now, perhaps SIOP could
set up a service that connects willing SIOP members with local nonprofits that
need their assistance.
This discussion also raises the question of whether or not we are serving
small for-profit businesses as well as we should be. I was surprised to find
that the Small Business Administration defines small businesses as those with
fewer than 500 employees. I tend to think of small businesses as having 50
employees or less. These small businesses are probably in a similar situation as
the nonprofits when it comes to receiving quality HR services. There is also a
similar paucity of information/training on the needs of small businesses.
Similarly, as a society we are just beginning to address the topic of
entrepreneurship. However, thats grist for another column.
Ultimately, Im not calling for my own faith-based initiative here, but I
do see an untapped resource. If Ive said some things here that you disagree
with or you would like to comment on whats been said, please contact me at bachiochip@easternct.edu.
Im more than willing to do a follow-up to this article if I hear from you.
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