5 Ways Your Nonprofit Organization Will Benefit from Outsourced HR Services

You started your nonprofit organization because you saw a need in the world that needed to be dealt with. However, running an organization isn't often as fun and easy when it has so many time-consuming HR tasks like filling out forms or following up about job applications for volunteers who want to join your team.

Dealing with the unique challenges of running a nonprofit effectively, it's often best to outsource your HR services. This allows nonprofits to get expert HR services and support while they focus more on their core mission. Here are five ways nonprofits can benefit:

Benefits of Outsourced HR Services for Non-profits

Here are five ways nonprofits can benefit:

#1. Cost Savings

Nonprofits often have limited budgets, and hiring a full in-house HR team may not be feasible. Outsourcing HR provides you access to a team of professionals without the high costs associated with full-time staff. With outsourced services, your nonprofit can gain access to critical HR functions, such as recruitment, compliance, payroll, and benefits administration at a fraction of the typical cost.

According to a report by McKinsey & Company, outsourcing HR functions, such as payroll, benefits administration, and recruitment allows companies to reduce operational costs by up to 40%. For nonprofits, this means more funds can be allocated toward programs and services that directly propagate their missions.

#2. Improved Compliance

Nonprofits are subject to various federal and state regulations, and staying compliant can be overwhelming, especially with limited resources. Outsourced HR providers stay up-to-date with changing labor laws and can ensure that your organization remains compliant with regulations, such as wage laws, employee classification, benefits offerings, taxes, workers' compensation, and workplace safety standards.

This expertise helps you reduce the risk of costly fines and legal issues that could arise from noncompliance - even without knowing all the rules yourself. With outsourced HR, your nonprofit can operate more efficiently and confidently knowing that compliance is being handled by experts.

#3. Enhanced Recruitment and Retention

Attracting and retaining top talent is crucial for any nonprofit, but many often organizations struggle with creating competitive compensation packages and fostering employee engagement. Outsourced HR services can help improve your recruitment efforts by providing access to expert recruiters who know how to attract talents that align with your mission.

Outsourced HR teams also specialize in creating employee engagement and retention strategies, such as professional development programs, mentorship opportunities, and recognition initiatives. These strategies can lead to lower turnover rates and a more engaged workforce.

#4. Access to HR Technology

HR technology can streamline administrative tasks like payroll, benefits administration, and performance tracking, but implementing these tools can be costly for nonprofits. Outsourced HR providers often have access to the latest HR software and platforms, giving your organization the ability to leverage technology without the upfront investment.

These platforms can improve efficiency, automate repetitive tasks, and provide real-time insights into employee performance and organizational needs. With access to cutting-edge HR technology, your nonprofit can enhance operational efficiency and focus more on achieving your mission.

#5. Strategic HR Support

Outsourced HR isn’t just about handling day-to-day tasks — it can also provide strategic support. HR experts can offer insights into organizational culture, help develop leadership training programs, and guide you through succession planning. They can also assist with employee feedback mechanisms and develop long-term strategies that align with your nonprofit's goals.

By offering strategic HR support, an outsourced provider can help create a workplace environment that fosters collaboration, innovation, and mission alignment, contributing to the long-term success of your nonprofit.

Partnering with a Professional Employer Organization (PEO)

A PEO is a perfect partner in any nonprofit's success. They offer turnkey HR services that cover everything from payroll and benefits administration sick days management to workforce planning compliance. So you can focus on what matters most: The Work Your Group Does!

When you collaborate with a PEO, it's like giving over your work to the organization that knows best how to handle these complicated details. A PEO is tremendously effective in dealing with each of five tasks related in this article and can even help you provide better employee benefits to your workers at musch cheaper costs.

With a partner like Mission, you let us deal with all the subtleties encompassing your shopping for your new PEO partner and focus on changing the world. If you're ready to work with a first-class HR organization that will assist you with finding the right solution, let's talk today.

About Mission

The Mission is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We provide a valuable service for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource (HR) compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing. For more information on how we can help you, learn more about us here.