Burnout costing billions in the NFP sector
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By Matthew Schulz, journalist, Institute of Community Directors Australia
Organisations should put prioritise keeping employees over recruiting new ones, according to the For Purpose Alliance (FPA), an enterprise specialising in cultivating NFP sector leaders.

FPA CEO and founder Carmel Molloy said recruitment was no longer the top concern on human resources (HR) agendas, because investing in leadership development was both “the right thing to do” and a financially smarter choice, as recruiting and onboarding new leaders was significantly more costly than retaining and training existing staff.
Molloy cited the McLean & Company report HR Trends 2025, which ranked leadership development and employee retention as the top HR priority for the first time in five years. Forbes also identified leader and manager development as its top workforce priorities.
At the same time, US studies showed that more than three-quarters of workers (77%) felt disengaged at work. Citing global analytics and advisory firm Gallup, Molloy said that poorly engaged workers were unproductive and more likely to leave.
As a result, organisations should be working hard to improve workplace culture, motivation and support.
“You don’t always need a newer, faster, slicker boat – sometimes, you just need to remove the barnacles."
Molloy said that leaders should ensure team members feel supported and engaged, which requires fostering “meaningful opportunities for collaboration and connection”.
Externally, organisations could seek peer engagement with other sector leaders.
“Exposure to new ideas and diverse perspectives enhances decision-making and provides valuable professional and emotional support,” Molloy said.
The FPA explained the benefits of peer-to-peer support in this report for Community Directors Intelligence.
Molloy said simplifying processes would help prevent burnout and boost efficiency, stressing that artificial intelligence and automation “should serve as tools, not burdens”.
For example, organisations should avoid overwhelming teams with complicated new systems, and consider refining existing processes instead.
“You don’t always need a newer, faster, slicker boat – sometimes, you just need to remove the barnacles,” she said.
Molloy said that time was a key factor in retaining good people.
She said that leaders and managers were time poor, and needed time for skill development, leadership growth and technology adaptation. This learning should be engaging and interactive, and framed as “an opportunity for connection rather than an obligation”, she said.
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