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Nonprofits and the Job Retention of Former Welfare Clients

Legislation has shifted power and authority for welfare policies and programs to the states, with few federal guidelines. However, the intent was clearly to move people from welfare to work. Nonprofit organizations have played a major role in providing jobs for this population, along with the public and for-profit sectors. A critical issue is what nonprofits and other employers, through their human resource (HR) practices, can do to enhance the job retention of former welfare clients. The authors conducted a large-scale empirical study that examined effects of a broad range of HR practices associated with the retention of welfare clients in the nonprofit, for-profit, and public sectors. Results indicate that job retention is higher in the nonprofit sector compared to the others, and that this retention may be a result of HR practices that emphasize investment in and commitment to employees. Implications for public policy are also presented.