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Tips and Answers to Your Questions
Human Resources
Will strategic restructuring result
in a loss of jobs at my nonprofit?
This is a common and very valid concern for the employees of nonprofits considering
a merger or other strategic restructuring effort. Indeed, it is often true
that some people may end up losing their jobs once a new organizational structure
is solidified. Most often, however, that job loss is limited to administrative
positions. Where two organizations may have each had their own bookkeeper in
the past, a newly merged organization may need only one. Similarly, a merger
will likely eliminate the need for both Executive Directors. There may be a
need for only one receptionist, or a fundraising staff of three instead of
the two that worked for each organization previously.
Those jobs that involve direct service to clients are much less likely to
be cut, however, strategic restructuring is unlikely to reduce the total number
of clients needing to be served. Indeed, nonprofits often consider merging
or otherwise restructuring in order to put them in a better position to expand
their direct service offerings.
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