The Top Three HR Issues Facing Nonprofits

The Top Three HR Issues Facing Nonprofits

Nonprofits currently make up over 10% of the United States’ workforce. This percentage is likely to increase as 57% of nonprofit executives in 2016 said that they planned to grow their organizations with new positions within the next year. Growth in the nonprofit sector is important for the country as we begin to tackle issues like mental health and substance use disorders. Unfortunately, while many nonprofit executives try and grow their organizations to serve more clients, they face unique HR issues that can cause problems down the road.

Luckily, today’s nonprofit executives have access to resources and platforms that were once only available to the big, for-profit corporations. Sophisticated HCM platforms are significantly growing in popularity among nonprofit organizations, dramatically decreasing the number of hours spent on HR tasks and reducing the negative impact that HR issues have on nonprofits.

The 2017 State of Workforce Management report revealed the top three HR issues that nonprofits face, which include Recruiting & Retention, Employee Engagement & Satisfaction, and the Drive Towards Digital. Results from the recently conducted DATIS 2017 Executive Priorities Survey helped us to further explore these issues.

Recruiting & Retention
The 2017 Executive Priorities Survey revealed that 47% of nonprofit organizations are currently hiring for 10 or more positions. The survey also showed that only 18% of nonprofit executives believe their organization is adequately staffed to handle the demand of those in need. This further strengthens the point that executives need to recruit and retain top talent within their respected organizations.

Unified HCM platforms offer functions such as recruiting and applicant tracking that expedite and automate the entire recruitment process. Additionally, a structured onboarding process has been proven to increase retention rates among nonprofits. Over 62% of nonprofit executives claimed that their organization would benefit from a structured onboarding process.

Employee Engagement & Satisfaction
Keeping employees engaged and satisfied is another major HR issue for nonprofits. Over 40% of nonprofit executives claimed they did not have the funds or resources to allocate towards employee engagement efforts. With already tight budgets, it’s important for nonprofits to find innovative, cost-effective ways to engage employees.

In terms of employee satisfaction, over 60% of survey respondents reported that their organizations evaluate employee satisfaction through annual reviews. In other words, the vast majority of nonprofit executives only evaluate their employee’s satisfaction levels once a year. Jim Barnett, CEO and Co-Founder of Glint, recently stated, “People are realizing that doing anything annually, whether it’s a performance review, engagement survey or goal-setting, makes no sense.” If executives want to get serious about improving employee satisfaction within their organization, they will need more frequent and consistent evaluations.

Drive Towards Digital
The Drive Towards Digital trend refers to technological advances in the workplace that are transforming organizations in terms of their systems, processes, and people. Digital strategies are now critical to keep pace with an evolving industry, and success in the digital landscape will require a combination of many factors including innovative processes, engaged talent, and new business models. The 2017 Executive Priorities survey found that many nonprofits are starting to see the value in stepping up their investments in software platforms.

The survey revealed that 88% of nonprofit executives believe that investing in digital strategies will help their organizations make more strategic decisions, with a further 83% stating that investing in digital strategies will help their organization serve more clients. With all that said, it’s important that nonprofits are well-informed with their investments.

There are HCM software providers, like DATIS HR Cloud, that have specifically built their software solution to meet the complex and unique HR needs of nonprofit organizations. By understanding these HR issues and how to minimize their negative impact, executives can grow their organization more efficiently than ever before.

This DATIS Blog was written by James Clark, DATIS, on August 28th, 2017 and may not be re-posted without permission.

Written by James Clark