How to Overcome the Biggest Challenges in HR for Nonprofits

It’s true that nonprofits function in several different ways than their for-profit counterparts. However, when it comes to human resources, the issues are similar. The biggest dissimilarity is nonprofits have less money and resources to manage them. Thankfully, this challenge is surmountable. The following are several suggestions for HR professionals to manage their nonprofit’s challenges with limited means.

Talent Acquisition

Finding, hiring, and retaining talented employees can be difficult without a robust recruiting budget. Being small, new, or relatively unknown can also thwart talent acquisition efforts. Even so, this does not mean nonprofits are at the mercy of whoever shows up to an interview. To address these issues, nonprofits can focus on offering other highly sought after benefits such as a stellar work-life balance. By providing benefits that employees want, nonprofits can draw in a larger number of applicants. Nonprofits should also lean on their existing connections for leads.

Benefits Administration

Laws regarding benefits change often, causing confusion as to who is eligible for how much coverage. Compounding this issue for nonprofits is the rising cost of benefits in general. As discussed above, nonprofits should offer an attractive benefits package to pull in the best candidates, but this can be cost-prohibitive. For nonprofits that have small or nonexistent HR departments, personal employer organizations (PEO) can be a game changer. PEOs perform many HR functions such as payroll, benefits administration, workers’ compensation, and more. Engaging a third party to manage these tasks can save nonprofits time and money spent on interviewing and hiring an entire HR staff that it may not be able to afford regardless.

Importance of the Nonprofit’s Mission

Unlike for-profit organizations, nonprofits do not do what they do for the sole purpose of making money. Nonprofits exist to advance a cause that benefits those outside of the organization. However, keeping employees engaged and motivated can be a challenge with limited funds and resources. People often join a nonprofit because they want to make a difference for their community or for a focus group. Nonprofit HR professionals can help keep employees on track by generating job descriptions and developing goals that help achieve the organization’s mission. This helps candidates and employees understand how their role is relevant and important to the cause.

Nonprofits’ unique challenges do not stop at the HR department. In addition to human resources issues, nonprofits must consider their distinctive risks and insurance needs. If your nonprofit is struggling to overcome these difficulties, SteelBridge can help. We can provide insight, advice, and solutions. To learn more, contact us.

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