In some of our previous blogs, we wrote about how outsourcing different functions of HR can help for-profit businesses of various sizes. But today, we will look at how HR outsourcing can benefit non-profit organizations — even the ones that are new and especially smaller in size. It is fairly evident that non-profits work differently than for-profit businesses. The biggest difference one can notice while comparing the two is the “cause”. The main purpose of a non-profit is to use its resources to propel a social cause or aid the public in eliminating social problems like homelessness, hefty medical bills, air/ocean pollution, lack of caregiving for stray animal populations, etc. Most of the money that such non-profits receive is channeled directly into fixing these issues, while some of it may be reserved to take care of the full-time volunteers who decide to dedicate their time and efforts to such noble causes. For-profit businesses work quite differently, as we all are quite aware of nowadays. Such businesses find solutions to already existing problems in the world, package the solution in the form of a product or service, and sell it to people across the world. A significant part of the profits is then channeled back into the company which enables the business to scale up quickly and easily. Today, the legal systems of most countries around the world have given non-profits their own legal status. Certain laws that are applicable to for-profit businesses do not apply to non-profits, for example, taxation. Non-profit’s in most countries are found to be tax-exempted legal entities. But at the end of the day, what does this all mean for a non-profit? Are their HR functions different from the HR functions of other for-profit businesses? Do they need outsourcing? And if they do, how does it impact the organization? Let’s find out. IS THERE A NEED? Firstly, we will look at the various types of income sources and expenses that a non-profit can have. Since most non-profits do not sell any product or service to the general public or other businesses, they have to rely heavily on grants, donations, regular individual contributions, fundraising, crowdsourcing, investment returns, etc. When we look at expenses, a non-profit organization will typically spend on marketing to potential donors, taking care of volunteers involved with the non-profit, and most importantly, on the main cause/mission of the organization. So, there is this constant balancing act of keeping the income equivalent to their expenses, which is a very tough job to do over a long period of time. Donors may disappear without notice, funding may be cut abruptly, or volunteers may leave to pursue personal goals, making the entire operation short-staffed and inadequately funded. Many such problems exist indefinitely in most non-profits across the world — the future always looks bleak as compared to the past. This is the biggest reason why non-profits need expert HR services. BUT HOW? Recruitment Process Outsourcing: Most non-profits experience a constant dearth of good volunteers. This is mainly because volunteers don’t get paid huge salaries to participate in the cause. Most of the time there is no pay or even if there is, it may not be enough to support themselves or their families. Therefore, most volunteers leave shortly after joining the organization or may join in once in a while whenever they have time. All of such recruitment problems are eliminated when you partner up with a professional RPO provider like Exela HR Solutions. Armed with diverse experience in helping non-profits with staffing, we make sure you are always adequately staffed in all the locations in which you operate. Compliance & Regulation: Being a non-profit doesn’t automatically dissolve you of any legal responsibilities. In fact, most countries have detailed compliance and regulation laws in place specifically for non-profits to help curb the spread of serious financial crimes like money laundering and tax evasion. Any non-profit that does not comply with such laws may come under heavy scrutiny from the government which may further result in payment of heavy penalties, a complete shutdown, or even jail time. Additionally, laws are updated regularly to consider newer scenarios and environments, which makes it even harder for any one person in the organization to constantly stay updated with newer, updated laws. Compliance and regulations experts at HR outsourcing firms like Exela HR Solutions are your best shot at avoiding the repercussions of accidental non-compliance. We make sure your non-profit stays compliant at all times. Time and Cost Efficiency: Once you partner with us, you have exclusive access to our strong talent network and robust technological infrastructure which enables us to find the right person for your organization at the right time. Manual recruiting takes up a lot of time and may take up to two months to on-board the right person. Using our advanced recruitment infrastructure and evolved talent network, we make it happen in a matter of days. You also save money on recruitment and compliance management by outsourcing these HR functions to experts like Exela HR Solutions as compared to running all operations in-house, because you pay for the specific service and a specific quantity as compared to a full-time salary for an employee on your payroll. Learning and Development: Volunteers or employees, full-time or part-time, need regular training. Take for example an NGO specializing in delivering medical aid to domestic as well as wild animals. This NGO will typically need 9 different types of teams to function effectively — to their fullest. 1. A team of expert handlers to go into the field and bring back the injured animal as well as release it back into the wild after treatment 2. A team of drivers to drive veterinary ambulances or caged trucks 3. A team of veterinary doctors and nurses to treat injured animals 4. A team of logisticians to make sure all necessary medical, as well as regular equipment, is available at all times 5. A payroll team to disburse salaries and payments to vendors 6. An accounting team to manage finances and balance sheets 7. A (social media) marketing team to maintain a strong online presence to attract donors 8. A legal team to take care of all the legal issues like property management, filing and litigating cases related to animal cruelty, legal filings, compliance management, etc 9. A team of volunteers (from the general public) to do all other ad hoc tasks like organizing donation events, awareness events, volunteering events, assisting in caretaking, etc. When all these different teams come together, work towards a common goal, and make progress consistently over time, only then our fictional NGO could be deemed as a successful entity that makes a significant difference in the betterment of society. But on the contrary, an NGO that is run by individuals who lack expertise in their specific field will produce mediocre results in the long run. Could you imagine a veterinary doctor who has a success rate of only 40% while performing surgeries on leopards? Or a veterinary ambulance driver that has had 5 major accidents in the last eight months while transporting an injured animal? Or a team of volunteers that failed to convert more than 10 donors in the last three large-scale events? Would you call an NGO with a similar track record a “success”? Absolutely not! These NGOs, at best, would be mediocre. The only way, therefore, to always keep staff performing at their peak is continuous improvement. It is essentially a race against yourself by asking yourself two important questions every time you work on your tasks. 1. Can I do better than the last time I did this? 2. If yes, how? The secret answer to the second question lies in your learning and development strategy. Better your strategy, faster your employees will find newer and more creative ways to solve problems that they encounter in their day-to-day work life at your non-profit organization. Volunteers not able to attract donors at events? Train them in advanced communication skills and persuasion techniques. Animals express unusual aggression towards handlers or caretakers? Train them on the subject of animal cognition in human-wildlife interactions. Need to improve online presence? Train your social media team on digital marketing. Partnering up with Exela HR Solutions will give you exclusive access to expert learning and development professionals who will design custom strategies for your teams along with lifetime access to tried-and-tested learning strategies and techniques at a fraction of the cost and setup time. Exela HR Solutions is a global leader in providing end-to-end HR solutions to businesses and non-profits around the world. Speak with us today to learn more about what we offer: https://ehrs.exelatech.com Sources: google.com | en.wikipedia.org | twitter.com | reddit.com DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.
Non-profit organizations come in all sizes, but is HR outsourcing for all of them? Let's find out.
