Abstract

This comparative qualitative study explored how nonprofit and for-profit organizations approach the retention and development of early-career professionals aged 18 to 25. Drawing on Jay Galbraith’s (1995) STAR model of organizational design—encompassing strategy, structure, process, people, and rewards—the study investigated what practices are currently in place and which strategies nonprofits might adopt from for-profit organizations to improve employee engagement and retention. Data were collected through 10 semi-structured interviews with senior leaders from five large, youth-serving nonprofit organizations and five for-profit companies with strong employee retention reputations. The findings revealed six core differences between sectors, with for-profit organizations demonstrating more consistent practices related to employee integration, growth culture, data-driven decision-making, and manager enablement. In contrast, nonprofit organizations often relied on mission alignment but struggled to operationalize values and provide structural clarity for early-career staff. The study concluded that while purpose-driven work is vital, “purpose isn’t enough” without supporting systems that ensure employees feel clear, supported, and positioned for growth. The research offered actionable implications for nonprofits and calls for a shift away from viewing retention challenges as purely financial, emphasizing instead the role of structure, feedback, and local leadership in shaping the early employee experience.

Library of Congress Subject Headings

Employee retention — Cross-cultural studies; Nonprofit organizations — Personnel management; Career development

Date of Award

2025

School Affiliation

George L. Graziadio School of Business and Management

Department/Program

Business

Degree Type

Thesis

Degree Name

Masters

Faculty Advisor

Ann E. Feyerherm

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