How Nonprofits Benefit from HRM software

One of the awesome perks of working at Dominion is Dominion University. Once or twice a week, one of my insanely smart coworkers teaches a class about what they are an expert in or passionate about. It’s a really cool way to have more transparency and understand what everyone does everyday. A couple of weeks ago I went to a really good class about non-profits and knew I had to write about it. We talked about the history of non-profits, why they are, what they are, the process to becoming one and how their needs differ from for-profit companies when it comes to payroll, time & attendance and hr. 

After the class I still had a ton of questions about how hrm software can specifically help non-profits. So I did some digging and these are the top things I believe a solid HRM/HRIS can do for a non-profit. 

Brings simplicity and organization to chaos. 

Anyone who has worked for, volunteered for or even knows someone who has done either for a non-profit knows that everyone wears a lot of different hats. That means everyone can’t be an expert in the nuances of payroll or hr or time & attendance. An intuitive platform makes sure you don’t have to be an expert and that one person's mistake doesn’t destroy the company. 

Not being an expert in payroll and attempting to run it by hand or with subpar software is not a recipe for success. It’s high risk, low reward. Far too many times I’ve heard stories of 941 forms not matching W-2s and the IRS sending $100,000 plus fee to a non-profit that does not have that kind of money laying around. 

One of the big BIG things to remember when running a nonprofit payroll is that 501(c)(3) companies are not required to pay federal unemployment taxes, BUT they may still be required to pay state unemployment. 

Document organization is another huge asset for nonprofits. Having your;
    job applications (past and present) 
    reference and background checks 
    performance evaluations 
    tax records 
    volunteer postings and applications 
all in one place and easily accessible makes sure staying compliant is a breeze. 

The Affordable Care Act is adding some more confusion to running a nonprofit’s payroll. Nonprofits don’t have the time or resources to dive into the details of how to stay compliant so using a software that tracks their FTEs, fills out 1094-C or 1095-C forms and other pertinent ACA info relieves many stresses and headaches. 

Side note, Dominion has a webinar on August 4th about the most recent changes and updates to the ACA. Register here

Efficiently staffing the right people

Moving on to the HR side of nonprofits, staffing is, without a doubt, the biggest advantage to using a hrm software. Nonprofits are competing with top talent, for profit companies and even other nonprofits to get the best possible bang for their buck. They need an organized and concise system to alleviate the stresses of hiring people. 

Flagging top candidates, setting filters so you only get applicants you want and an onboarding system to get those new employees in the rest of the software are basic necessities any nonprofit needs. Onboarding is as much a part of the employee as it is the employer. Who wants to waste the first week of their new job filling out paperwork, scanning IDs and digging up personal information that haven't used since their last new job? Onboarding let's the employee take care of all of that on their own, even before they step into the office with the employer able to track all of the process on their end. That allows the new employee to focus on what's really important when you start a job - meeting all of your new coworkers and getting comfortable with the new job! 

Benefit of benefits 

This is where nonprofits need to get creative. Salaries can or cannot have ceilings, depending on the nonprofit, so offering robust and employee friendly benefit packages is where they can attract top talent. Even regardless of salary ceilings, nonprofits are always running right between the red and black, so any economic downturn, major or minor, requires them to be flexible and creative to keep talent. 

HRM helps in not only offering an intuitive and easy to use design to offer benefits to their employees but allows HR Managers to focus on more ‘social’ benefits. Flexible work schedules, showing monetary and, sometimes more effective, non-monetary appreciation, staff fun days, etc. 

Having an HR software that allows employees to easily request time off, select their own benefits, easily see W-2 and paystubs resonates that the nonprofit is investing as much into them as they are in their mission statement. 

Read more on being creative with your benefits here