HR software has a wide range of potential features, many of which are useful for managing nonprofit workforces. Although the specific functions you can access will depend on your HR vendor and software package, here are some of the most popular features to consider.
Hiring and Onboarding
Unlike for-profit organizations that may hire just one type of worker (e.g., full-time employees), nonprofits tend to enlist multiple types of team members, such as full- and part-time employees, contractors and volunteers. HR software can cater to diverse recruitment needs by automating job postings across various online platforms and managing applicant data efficiently. This not only saves time but also widens the reach of job postings, helping nonprofits attract a broader pool of candidates. The software can also facilitate applicant tracking, which makes it easier to identify the most qualified individuals.
When it comes to onboarding new hires, HR software can significantly enhance the experience for employees and volunteers. It enables nonprofits to digitize and standardize the onboarding process to ensure that all necessary forms, documents and training materials are readily available for each new worker. This reduces paperwork and minimizes the chances of errors or omissions. Because HR systems usually include tools for task assignment and tracking, it’s easy for HR managers and supervisors to monitor the progress of new employees and volunteers as they complete their onboarding and training tasks.
A poor onboarding process
can cost your organization time and money. Conversely, a well-strategized, automated onboarding process can save time and reduce errors.
Time Tracking and Payroll
Because nonprofits often have a range of worker types, they typically deal with varying schedules and pay rates. HR software can help with this by allowing you to create various schedules and digitally track workers’ attendance. Whether your workers are salaried, hourly or paid on a project basis, these platforms can automatically calculate their pay so you can compensate each person accurately and on time. You often have the choice of payment type, such as checks, direct deposit or pay cards.
HR software can automatically calculate and file local, state and federal payroll taxes on your behalf, which can be particularly complex for nonprofits with varying tax-exempt statuses. This automation saves time, reduces administrative burdens, and enhances financial transparency and accountability, all of which are critical for nonprofit organizations that often rely on donor funding and grants, where accurate financial reporting is paramount. [Read related article: How to Run Payroll for a Nonprofit Organization]
The benefits administration capabilities built into HR software enables nonprofits to offer their staff competitive benefits packages, which can be a key factor in attracting and retaining top talent. This can be especially crucial in the competitive nonprofit sector, where mission-driven work often must be complemented by attractive employment benefits.
With HR software, nonprofits can easily configure and administer a range of benefit plans, including health insurance, retirement contributions and leave policies. This centralized approach streamlines the enrollment and management process for both employees and HR professionals, thereby reducing administrative complexities. Additionally, HR software can automate benefits-related tasks, such as premium deductions and contribution tracking, to ensure accuracy and compliance with applicable laws and regulations.
Nonprofit employers can use HR software to set clear employee performance expectations and goals, aligning each team member’s work with the organization’s mission. Users can create regular performance review cycles and automate the process of gathering feedback from managers and peers. This approach ensures performance evaluations are conducted consistently and transparently and allows for fair assessments and constructive feedback. [Read next: Employees Are More Likely to Consider Quitting After an Unfair Performance Review]
Compliance and Reporting
Nonprofit organizations often face complex legal obligations related to employment law, tax regulations and industry-specific mandates. HR software can help not-for-profit companies navigate these challenges by automating compliance tasks. This reduces the risk of costly legal issues, fines or penalties that could divert resources away from the group’s core mission.
HR software can also streamline the reporting process for nonprofits, making it easier to generate and submit required reports to various government agencies and stakeholders. This is particularly vital for organizations that rely on grants and donations, as they often need to provide detailed financial and HR data to demonstrate transparency and accountability.