Competition for qualified workers will continue to rise for charities, foundations, associations, and similar organizations. There are many differences between the obstacles for-profit organizations face when hiring an employee.

There are several challenges that nonprofit organizations face when hiring a new employee, which include:

  • Compensation: Most people that decide to work with a for-profit company tend to earn more than those who work for a nonprofit. As a result, since compensation tends to be lower for the employees of nonprofit organizations that tends to drive many away.
  • Off -Hour Schedules: Another deterrent is that the work that is required tends to be at any time: nights, weekends, or events that require extended travel.
  • Slow Progress: Nonprofit organizations tend to take on large societal issues which at first excite the new employees. However, some of the new hires eventually grow disenchanted by the slow progress over time.
  • Burnout: Each of the challenges stated above tend to result in high turnover.

  • Finding a true candidate:
    One of the most common issues is finding a candidate that is truly interested in your nonprofits cause of choice.
  • Nonprofit organizations ask a lot from their employees and at times cannot offer much in return. These organizations struggle attracting great candidates and even more trouble retaining them when hired, while for-profit companies tend to have too many candidates to even review or consider.
    Since the salary of employees for nonprofit organizations compared to for-profit businesses is on average less, nonprofits must compete in another way. For instance, nonprofit organizations can come up with specific compensation packages for their employees that is intriguing. Some simple benefits that can be offered are:

    • Appreciation events – Nonprofits can offer their own space and services to improve employee benefits. For instance, hosting small, private events for staff and their friends and families.

    • Employee education
      –Organizations can offer ongoing training or as-needed skill building. Investing in employees in this way shows them they are appreciated.

    • Financial planning services – Financial planning assistance can help employees better manage their finances. Consider providing staff with access to a certified planner for individual consulting or group education.
    • Adjustable schedules – Flexible schedules are good for several reasons, from reducing commute times to cutting down on child-care costs. Also, work-from home policies and part-time opportunities can be great alternatives for staff. Reduced schedules can aid in mitigating the fatigue of dealing with difficult subject matter.
    • Health and wellness programs – Providing memberships to gyms or access to a nutritionist are admirable incentives and it keeps staff healthy also contributes to increased satisfaction and productivity.
    • Nonprofits offer these compensation packages to compete with for-profit businesses and other organizations that offer more monetary benefits These benefits do not necessarily make up for the lower salary, but they are added incentives.
      Nonprofit organizations also need to ensure they select the right people for the available positions. The more time and precaution organizations take to hire the right employee will increase the odds of retaining employees. The hiring process is a series of events that each nonprofit organization should execute cautiously.

      • The employers should provide a compelling job description that correctly describes the job.
      • Nonprofits should approach potential employees that are passionate about the mission being pursued so they will not be as likely to burn out or get discouraged.
      • When reviewing applicants’ organizations should consider people who have previously interned, worked, or volunteered with a nonprofit. They should also consider applicants who have been personally impacted by the issue the nonprofit is taking on.
      • These are simple steps that can be used in the hiring procedure that will increase the quality of employees your nonprofit will hire and increase the likelihood of retaining them. Your nonprofit is only as effective as its people, so it’s imperative that you staff your organization for success. An outsourced HR representative can help organizations make the process more efficient and even come up with a plan of action for improvements.

        Emplicity understands that HR Outsourcing should be simple and meaningful. As a Professional Employer Organization (PEO), we strive to be a great partner in supporting your business. If you would like to request more information on how we can assist your needs, please reach out to us at 877-476-2339. We are located in California – Orange County, Los Angeles, and the greater Sacramento and San Francisco area.

        NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of their clients.

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