Nonprofit Employee Development: Grow Capacity Without Growing Costs
- Pamela Tolf
- 12 hours ago
- 5 min read
In this post, we show how nonprofits can increase impact without increasing budget by building capacity, not adding overhead. We explain what employee development really looks like on the job, why onboarding prevents future rework, and how the 70/20/10 model, competencies, and manager coaching support consistent growth. We also share low-cost ways to build skills through relationships, feedback, and clear development plans.
Increase Impact Without Increasing Your Budget
Most nonprofits aren’t short on mission. They’re short on capacity. And while budgets matter, the bigger hurdle is often whether the team has the clarity, skills, and support to do the work without constant rework, burnout, or turnover. By intentionally training, coaching, and developing employees, nonprofits can strengthen performance, employee engagement, and their culture. Employee development also leads to higher productivity, better retention, and improved morale.
What “Employee Development” Actually Means in a Nonprofit
Employee development is not just conferences, workshops, and formal training. Those can help, but they’re only a small portion of how adults learn at work. The most effective development is usually:
Embedded in real work
Reinforced through relationships (feedback, coaching, mentoring)
Aligned to role expectations and mission outcomes
This article outlines practical, low-cost ways to invest in your people while managing expenses.
Onboarding and Beyond: Build Capacity from Day One
Onboarding is your first (and best) chance to set expectations and reduce future rework. New employees need enough training and context to meet the organization’s standards quickly and confidently.
Use onboarding to create shared language and clarity Many organizations use the DiSC® Assessment during onboarding to identify communication styles, strengths, and growth areas. DiSC® is a behavioral assessment designed to increase self-awareness and improve how individuals communicate and collaborate. When teams share a common language for behavior and work styles, you typically see improvements in:
Communication and collaboration
Manager-employee alignment
Team productivity and trust
Add a Professional Development Plan (PDP) at the 90-day mark After an employee has been in the role for about 90 days, a Professional Development Plan (PDP) can help identify development goals aligned to the role and future growth. A solid PDP focuses on:
Skills and behaviors required for current responsibilities
Targeted goals tied to performance expectations
Concrete development activities (not vague intentions)
Make work the classroom - The 70/20/10 Development Model PDP activities are most effective when they are based on the 70/20/10 Development Model. It is a widely-used framework that explains how people learn and develop most effectively at work. It emphasizes that development happens primarily through experience and relationships, not just formal training.
70% of learning is experiential or on-the-job
20% of learning is through interactions with others, including feedback, coaching, mentoring, and observation
10% of training is formal training to include structured programs to include workshops, e-learning, virtual courses, and conferences
The biggest impact comes from the 70% on-the-job experiences: learning embedded in day-to-day work, stretch assignments, problem-solving, and real-world challenges. This learning can include managing a direct report, such as an intern, cross-functional experiences, or horizontal moves, expanding the scope of the role, job shadowing, participating in strategic planning meetings, presenting at a conference, organizing a meeting or an event, and/or becoming a project lead.
Use competency frameworks to make development consistent
Nonprofits can further strengthen development efforts by building and using a competency framework. Competencies are the skills, capabilities, and behaviors required for an individual to successfully perform their job. They fall into two types: core competencies, which are expected of all staff, and leadership competencies, which are needed for taking on greater levels of responsibility. Clearly defined and well-communicated competencies – which are aligned with an organization’s mission, goals, and values – help employees understand expectations and support consistent development across the organization.
Organizations without a formal competency model can use an existing resource, such as the “FYI: For Your Improvement, A Development and Coaching Guide (3rd Edition)” to build competency-based development plans.
Make Managers Your Best Development Resource
One of the most cost-effective ways nonprofits can grow their people is by strengthening manager capability. Managers shape day-to-day clarity, coaching, feedback, and development follow-through.
When managers are trained to coach, give meaningful feedback, and support PDPs, the development of their employees becomes ongoing. Managers can use regular one-on-one conversations to coach and provide feedback. Effective managers make a difference across the organization, helping nonprofits grow their people without growing their budgets.
Learning through Relationships: low-cost, high impact
Relationships accelerate learning and reduce ramp-up time—especially in complex nonprofit environments.
Use an onboarding buddy system
Many organizations assign a new employee an onboarding buddy for six months (or longer). This creates a trusted point of contact for questions and context. It also strengthens learning retention because support is linked to real tasks as they happen.
Other relationship-based development options
Mentoring (formal or informal)
Peer learning circles
Job shadowing
Cross-functional partnerships on projects
These approaches build skills without requiring travel or expensive programs.
Frequent Feedback and Reflection
Monitoring performance and providing real-time feedback are critical components of employee development. Honest and meaningful feedback helps employees understand their strengths and areas for growth. Managers can provide feedback during regularly scheduled individual meetings. Establishing a cadence – monthly, semi-monthly, or quarterly – to discuss professional development keeps development goals visible.
Employees also benefit from debriefing after completing a task or a project. Reflecting on what went well and what could be improved upon builds learning into everyday work.
Closing Thoughts
Growing your people does not require growing your budget. By redefining development, embedding learning into everyday work, leveraging internal expertise, using the 70/20/10 framework and competencies, and aligning development with organizational goals, nonprofits can build strong, capable, resilient teams.
The real question isn’t whether you can afford to invest in your people—it’s whether you can afford not to.
Want to strengthen your team without increasing overhead?
Vault Consulting helps nonprofits and associations build practical people systems — onboarding, manager enablement, competency models, and development planning — that improve retention and performance. Let’s talk about what would make the biggest difference in your organization. Contact our team today!
Additional Resources for Nonprofit Development
Northwestern University Kellogg School of Management – In partnership with The Allstate Foundation, this resource provides free on-demand videos and facilitated training programs on nonprofit management essentials, board governance, and impact measurement.
NonprofitReady.org – Free online and certificate programs covering leadership, fundraising, marketing, operations, and more. They offer over 600 free online courses and certificate programs covering leadership, fundraising, marketing, operations, and more.
Allstate Corporation – Offers professional development and management training.
ProInspire – Develop and activate leaders at all levels to accelerate racial equity from self to systems.
