Managing a Reduction in Force: Staying True to Your Values and Strategic Plan
Nonprofit leaders face few challenges that are more difficult than implementing a reduction in force (RIF). Over the years, I have supported several organizations in crafting values-centered RIF plans and policies. I anticipate this advice could be useful right now. Beyond the financial and operational considerations, there's a deeply human element at stake. Your organization exists to create positive change in the world—how do you maintain that commitment to your values when making difficult decisions about your team?
Here, I offer some advice on approaching a RIF that honors your organizational values and uses your strategic plan as a guide. This is the first in a two-part series on values-aligned RIFs. See also: Legal Considerations for Nonprofit Reductions in Force.
Why Values Matter During a RIF
When financial realities, especially time-sensitive and unforeseen, force difficult staffing decisions, it's easy to focus solely on the numbers. However, how you conduct a RIF speaks volumes about your organization's values. A thoughtfully managed RIF process has the possibility to:
Preserve trust with remaining staff, donors, and community members
Maintain dignity for departing employees
Demonstrate your commitment to organizational values even in crisis
Create a stronger foundation for future rebuilding
Using Your Strategic Plan as a Decision-Making Framework
Your strategic plan isn't just a document for growth periods - it's especially valuable during contractions. Once the financial picture is evident, it is important to use your plan to guide your decision-making. In the best case, your plan was developed at a time of consensus-building and contained many voices – because it was not created under duress, it is a good litmus test for what is strategically most mission-aligned and most important to your organization.
Revisit Your Mission, Vision, and Values
Review your organization's core purpose and guiding principles
Identify which values are most relevant to the RIF process and spend some time thinking about how to incorporate them
Determine how success will be defined beyond financial metrics
Evaluate Programs Through a Strategic Lens
Assess each program's alignment with mission impact and its resource requirements – human capital and otherwise.
Identify core programs that must be preserved versus those that could be paused
Map Staff Positions to Strategic Priorities
Create a matrix connecting positions to strategic plan elements
Identify roles critical to mission-essential programs
Evaluate positions based on strategic value, not just seniority
Develop Transparent Selection Criteria
Establish objective criteria based on strategic needs
Document the decision-making process thoroughly
Create an equity review process to prevent unintended bias
Share criteria with legal counsel to ensure compliance
Implement with Compassion and Clarity
Provide clear, honest communication about the reasons for the RIF
Offer the most generous transitional support possible
Create space for processing difficult emotions
Ensure leadership is visible and accessible throughout the process
Support Remaining Staff Through Transition
Acknowledge the grief and additional workload
Revisit priorities and adjust expectations realistically
Create forums and modes of communication for honest discussion about concerns
Reaffirm commitment to organizational values and mission
Communicate Transparently with External Stakeholders
Develop key messages that connect decisions to mission and values and your strategic plan and paint a realistic picture of what is happening and why
Reassure donors about continued impact despite changes, but you don’t need to sugarcoat it – be honest about what is going away
It’s always hard…
A reduction in force will always be difficult, but when guided by your values and strategic plan, it can be conducted in a way that preserves trust, maintains dignity, and positions your organization for future recovery. By approaching these decisions through the lens of your mission and values, you demonstrate that your commitment to them extends beyond times of plenty into periods of hardship as well. Remember that how you manage a RIF becomes part of your organizational story and culture. When conducted with compassion, even this problematic chapter can strengthen your organization's foundation and commitment to its purpose.
This is the first in a two-part series on values-aligned RIFs. See the second part here: Legal Considerations for Nonprofit Reductions in Force.