Nonprofit organizations are essential to the health of our communities. They serve valuable roles—filling needs and providing services that would help various people and causes.
What many people don’t realize however is that nonprofit organizations must operate like a business to successfully fulfil their mission. On top of walking that fine line between staying within a budget and meeting the community’s needs, nonprofits face unique HR challenges concerning policies, procedures and nonprofit association management.
Here are some of the most common issues that you need an HR team to handle:
By partnering with an HR professional, your nonprofit will reduce legal risks and have to worry less about remaining compliant under state and federal guidelines. Here are just a few things to consider.
When it comes to nonprofits, handbooks are essential for clearly setting forth guidelines for at-will work, procedures, discipline policies and more. Set yours up from the very beginning with expert HR guidance.
COVID-19 has changed nearly everything, including regulations on sick leave and other family support allowances during these challenging times. An HR expert will help you stay up-to-date on the latest information your nonprofit needs to know.
- FLSA compliance
Just like business owners, nonprofits need to be well-versed in the Fair Labor Standards Act (FLSA) to remain compliant. There’s a lot to know about minimum wage, overtime pay, recordkeeping, and youth employment standards. Having an HR professional by your side will help ensure nothing falls through the cracks.
- Other employment law issues for organizations >5 employees
Nonprofits typically start out with only a handful of employees. This puts them in categories similar to small businesses when it comes to employment laws. Your HR partner will help you make sense of these issues and take the appropriate next steps.
2. Benefits Administration insight
Nonprofits must walk a delicate balance when it comes to finances. Having to pay employees, offer competitive benefits and stay within your operations budget while fulfilling a service-based mission is one tall order. Here’s how an HR consultant can help you by making recommendations on total rewards packages. We can also help you determine which services and packages are the best fit for your team.
3. Fair Wages
There is a perception that many people have that you shouldn’t earn fair wages for your position and skill-level because you work for a nonprofit. That couldn’t be farther from the truth, however. Here’s where an HR professional can help in establishing fair wages for your nonprofit:
- Assistance developing total reward packages
If you want your nonprofit’s mission to reach new heights, you must have reliable, committed people in place to back you up. That’s where a total rewards package comes into play. An HR professional can help you determine what that looks like.
- Market-based evaluations of compensation
We’ve mentioned it before, but staying competitive matters—especially for nonprofits. Your HR partner can conduct market-based evaluations of compensation to ensure your wages aren’t turning away valuable workers.
4. Staffing, Recruitment and Retention
Businesses of all makes and models see the best return on investment regarding HR services from recruitment strategies. At People Solutions Center, we make recruiting easy with our Recruiting Director Program. Busy nonprofits see a huge advantage when they adopt this program and let an experienced HR consultant take the time, stress and worry out of your entire interview process.
5. FLSA compliance and Employee Classifications
Nonprofits are not exempt from the stringent employment laws that guide the for-profit world, which is just another reason why your organization could use an HR expert’s help. Employee classification and understanding of exemption status regarding overtime pay is vital. Save yourself time and stress by going through the process with your HR partner by your side.
6. Missional Alignment and Employee Engagement
Your mission is the driving force that brings your team and the community together. As experts in employee relations and engagement, HR consultants are well-positioned to assist nonprofits in this area.
- Strategic planning
An organization without a plan won’t make it very far. Your operations strategic planning should guide your efforts in making a difference in the world. Your HR partner will help your strategic planning process from recruitment to payroll and everything in between.
- Develop an employee engagement strategy
Ensure every person on every committee and at every level of your organization is supported and nourished to do the work they feel called to do. Utilize your HR team’s expertise to keep your employees (and volunteers) engaged.
7. Volunteer Management
Volunteers require a unique strategy to recruit, nourish and motivate. An HR professional will have your back in setting up your organization to do just that and reap all the rewards that come from working with volunteers.
- Development of volunteer handbooks
Just like your employees, volunteers need to have a clear understanding of your organization’s rules, policies and procedures, which means they need their very own handbook.
When you’re evaluating the must-haves for your organization, don’t neglect your human capital. Talent, dedication and loyalty should be at the top of your wish-list. Finding (and retaining) those traits is so important. An HR consultant is an invaluable asset and can help you create a successful nonprofit—furthering your mission.
Let’s talk about the options that People Solutions Center can provide for your nonprofit! Contact us today to schedule a free consultation.