Nonprofits Risk Losing Talent Because Their Workspaces Aren’t Cutting It

Many Canadian nonprofit organizations aren’t effectively using the workplace as a talent-securing tool, leading to higher employee churn rates. CBRE’s David Glick-Stal unpacks the problem, and how his firm is helping fix it.

David is based in Ottawa, a major node (along with Toronto) for national and international nonprofits and registered charities. CBRE just came out with its survey of the sector, which shows three out of 10 nonprofits had an annual churn rate of 10% or higher for 2016—double the number of nonprofits that reported high churn rates in 2011. One reason why, CBRE suggests, is because many nonprofits are failing to utilize the workplace as a means of promoting their culture and attracting talent. “If employees are working in a basement suite with dim lighting,” David says, “it makes it harder to get out of bed in the morning.”

Here’s UNICEF Canada’s revamped HQ in Toronto. Cathy Bongard and Byron Ahmet from CBRE’s downtown Toronto office worked with the nonprofit to create a “more energetic and engaging” space for employees, painting walls with splashes of colour and reconfiguring cubicles into smaller workspaces, allowing room for more open and collaborative space. UNICEF mission and value statements adorn the walls of meeting rooms. It's a standout office, as CBRE finds a substantial proportion of other Canadian nonprofits recognize the deficiencies of their spaces, with 28% disagreeing that their workplace “inspires creative thinking.”

USC Canada’s new home is at 56 Sparks St in Ottawa (above). The nonprofit had been in its old space for 40-plus years, “a very private office intensive layout,” David says. “Not conducive to how they work.” Its Sparks Street HQ is more open, and it occupies a more efficient footprint. “We redeployed those savings into the space.” Compared to the average private sector allocation of 150 SF/person, larger nonprofits (over 20 staff) allot 202 SF; smaller groups (under 20 staff) allot 417 SF/person, CBRE says. This limits an organization’s ability to provide collaborative and communal spaces the Millennial workforce “so highly prizes.”

Payroll makes up 60% to 80% of a nonprofit’s overhead, real estate about 10%, according to CBRE. So small investments in upgrades—like UNICEF’s paint and layout tweaks, above—can go a long way toward retaining talent (and David says retrofits can often be factored into lease negotiations). Many nonprofits have been in the same offices for decades, hesitant to modernize due to financial constraints. But workplace standards and expectations have changed substantively, David says. If employees are fighting an uphill battle to accomplish what they’re trying to do, “it can potentially be a big loss.”