How Nonprofits Can Foster Mental Health, Wellness and Employee Engagement

In the fast-paced and often emotionally demanding world of nonprofit organizations, the interconnected topics of mental health, wellness, and employee engagement are more crucial than ever. As nonprofits strive to make a difference in their communities, it’s essential to recognize that the well-being and engagement of their employees directly impact the organization’s ability to fulfill its mission effectively.

Employee Engagement in Nonprofits

Employee engagement goes beyond job satisfaction. It encompasses the commitment, enthusiasm, and dedication an employee brings. In the nonprofit sector, engaged employees demonstrate a genuine connection to their work and to the organization’s mission, their colleagues, and the communities they serve.

According to recent Gallup surveys, only 33% of employees were engaged in 2023, highlighting the ongoing challenge organizations face. This statistic underscores the importance of prioritizing employee engagement, especially in the nonprofit sector, where passion and dedication are crucial drivers of success.

Engaged employees believe their efforts make a tangible difference, contributing to the organization’s goals and broader societal impact. This sense of purpose can be a powerful motivator, especially in a sector where financial rewards may only sometimes match the corporate world’s. Moreover, employee engagement has direct links to an organization’s effectiveness and financial health through:

  • Improved retention, reducing recruitment needs and costs
  • Enhanced productivity
  • Personal and professional growth of employees

Conversely, organizations needing a formal employee engagement strategy may face unclear expectations, insufficient resources and training, limited growth opportunities, and decreased job satisfaction. The cost of disengaged employees is significant – in 2023, not engaged or actively disengaged employees cost companies about $1.9 trillion in lost productivity.

The Link Between Mental Health, Wellness, and Employee Engagement

Mental health, wellness, and employee engagement are intrinsically linked, particularly in the nonprofit sector, where employees often face high-stress situations and emotional challenges. When mental health is neglected, it can lead to burnout, decreased productivity, and disengagement.

Gallup’s well-being research identifies five essential elements: career (or purpose), social, financial, physical, and community. Strikingly, career well-being—the opportunity to live out one’s life connected to a sense of purpose—significantly impacts a person’s overall health and longevity. This finding underscores the critical role that nonprofit work, with its inherent sense of purpose, can play in employee wellness.

Addressing Burnout in Nonprofits

Burnout is a significant concern. The World Health Organization recognizes occupational burnout as a phenomenon resulting from poorly managed work-related stress. Nonprofit workers, driven by a passion for their cause, may be particularly vulnerable to burnout due to the pressures of meeting community needs while managing limited resources.

According to the 2021 Nonprofit Employee Benefits Survey, 48% of nonprofits struggle with burnout. This can lead to cynicism, demotivation, irritability, fatigue, and other mental health concerns, resulting in reduced performance and higher turnover rates.

Employers can ease this burden by committing to creating wellness solutions and a stress-free work environment to prevent and resolve burnout among staff and volunteers.

Strategies for Enhancing Employee Engagement and Wellness

  • Leadership Involvement: Company leaders can improve engagement by defining and communicating a clear vision. It is crucial to invest in managers who are committed to the organization’s mission and equip them with tools to build successful teams.
  • Regular Feedback and Surveys: Conduct employee surveys to understand how team members feel about their roles, leadership, and the organization. Use both informal internal surveys and formal workplace surveys to gather comprehensive feedback.
  • Implement Rewards and Perks: Show employees you care about their well-being by offering additional holidays, increased PTO, or wellness benefits.
  • Create Growth Opportunities: Offer new roles, networking opportunities, and professional development programs. Ensure employees are in positions that match their skills and abilities.
  • Establish Employee Resource Groups (ERGs): These groups can focus on shared experiences, values, or characteristics, promoting personal and professional growth and a sense of belonging.
  • Encourage Mental Health Conversations: Break the stigma around mental health by openly discussing it in the workplace. This can help reduce turnover rates, particularly high in the nonprofit sector (19% compared to the 12% industry average).
  • Offer Mental Health Benefits: Invest in mental health insurance benefits and wellness stipends to encourage employees to engage in therapy, yoga, meditation, and other stress-reducing activities.
  • Create Dedicated Wellness Spaces: Establish areas in the workplace for self-care activities such as meditation, journaling, or reading. These spaces can help boost creativity, restore motivation, and encourage mindfulness.
  • Build an Appreciative Culture: Recognize milestones and small successes to remind workers that their contributions make a difference. Encourage gratitude through daily affirmations or monthly appreciation events.
  • Provide Mental Health Days: Offer dedicated time off for mental health, allowing employees to recharge and prevent burnout.

A Holistic Approach to Nonprofit Success

By recognizing the interconnectedness of mental health, wellness, and employee engagement, nonprofit organizations can create a more resilient, effective, and impactful workforce. Investing in these areas isn’t just about improving individual employee experiences—it’s about enhancing the organization’s ability to fulfill its mission and create positive change.

As nonprofits navigate complex social challenges, prioritizing the well-being and engagement of their most valuable asset—their people—will be key to long-term success and sustainability. By fostering a culture that values mental health, promotes wellness, and nurtures engagement, nonprofits can build more vital, more effective organizations capable of making an even more significant difference in their communities.

In doing so, nonprofit leaders support their employees and set an example for the broader community, demonstrating the importance of holistic well-being in creating positive social change.


David M. Rottkamp David M. Rottkamp, CPA, is an Audit Partner and Nonprofit Practice Leader, at Grassi. David has over 36 years of experience providing audit and advisory services to the not-for-profit and health care industries. David focuses on organizations serving individuals with special needs, religious organizations, educational institutions, membership associations, social service providers, healthcare providers, foundations, and the arts and culture world. David’s technical knowledge allows... Read full bio

Categories: Advisory