Nonprofits and NGOs can transform talent development into a powerful tool for employee retention, leadership cultivation, and workforce inclusivity. Employee turnover remains a concern, with over 40% of voluntary departures attributed to limited opportunities for growth, according to a Nonprofit HR survey. To address this, organizations must link leadership development to retention by providing clear paths for career advancement.

Nonprofits often fall behind for-profit organizations in promoting leaders internally, making it crucial to prepare future leaders. By investing in leadership development, nonprofits not only ensure sustainability but also demonstrate commitment to their employees’ growth. Additionally, formal leadership development supports diversity, equity, and inclusion (DEI) goals. Systems used to assess talent serve as “choice points,” either enabling or obstructing workplace inclusivity. To meet evolving challenges, tomorrow’s leaders should reflect the diversity of their teams and communities, addressing factors like race, gender, and other historically exclusionary markers.

A structured approach to leadership development helps nonprofits retain talent, build a diverse leadership pipeline, and stay mission-focused while fostering an equitable workplace.