By Leslie Walbridge
Nonprofit organizations face many challenges when it comes to handling human resources, not least of which come down to budget limitations. Without strong HR support, nonprofits struggle to focus on their missions because of difficulties with everything from employee engagement to compensation planning. In a recent article for Nonprofit Quarterly, Simone Putnam laid out the reasons for outsourcing your HR function rather than trying to hire a full-time human resources employee: “HR outsourcing enables organizations to focus on their core mission while entrusting HR functions to professionals who can devote the right level of expertise at the right number of hours necessary for each organization’s particular situation.”
Putnam points out in her piece that there are several reasons why nonprofits will opt to outsource their HR functions, but arguably the most important reason has to do with compliance. “Even small organizations can face heavy fines if they fail to comply with [employment laws and regulations],” noted Putnam. These laws can be intimidating, especially if an organization has employees in more than one state. Outsourcing HR can take the pressure off of an Executive Director or other higher level administrator to try to understand and implement appropriate policies without a strong understanding of human resources as a field.
Part of the beauty of outsourced HR is that it can be tailored to your individual organization’s needs. Your consultant can work on-site or off, can be retained on a short- or long-term basis, and can perform only specific functions (such as recruiting and hiring) or can perform all HR functions.
Before you waste your time, energy and money trying to hire an affordable HR wizard who is able to perform everything you need, and only EXACTLY that, consider outsourcing your HR to experts who can tailor their services to meet your needs and your budget.
Think outsourced HR might be the solution for you? Learn more about the HR consulting Nonprofit HR provides as well as the service options specifically designed for small nonprofits.