As a leader of a nonprofit organization, your mission is everything to you. Anything that takes you away from the work you do to fulfill that mission is a distraction—like handling the details of HR and compliance issues. That’s why you should consider hiring a PEO (professional employer organization) for your nonprofit.
This article identifies three common challenges nonprofits deal with and how partnering with a PEO can help you overcome them—and get you back to working on your mission.Anything that takes you away from the work you do to fulfill your nonprofit's mission can feel like a distraction—including handling the details of HR and compliance issues. Click To Tweet
3 Huge HR-Related Challenges Nonprofits Face
Your organization’s initiative means your goals, and your structure, are a little different than a corporate entity. This can lead to challenges when it comes to compliance and human resource management.
1. A lack of experienced HR professionals
We find the main challenge nonprofits face is that they are inexperienced in HR matters since it is unlikely they employ a full-time HR expert. This inexperience is quantified by the many hours members of the organization then must devote to tasks that take them away from their mission; ultimately, this leads to less good being done because non-negotiable tasks must be met. That’s where PEO expertise becomes invaluable.
2. Working with a limited budget
Most nonprofit organizations have a fixed budget to work with. On their own, these organizations may have a difficult time identifying cost-appropriate insurance plans that also provide the benefits employees want and need. Also, small- and medium-sized nonprofits may not be able to afford the same plans as larger organizations.
3. The complexity of liability issues
One challenge we hear repeatedly from nonprofits is that their executive team, governing body, board members, etc. does not have the knowledge (despite their experience in other areas) to understand liability issues in HR; they also may not be aware of all the ways in which they must tackle issues of compliance related to employees. Compliance is important for nonprofits. If missteps are made, they could lose the grants and funding that keep their doors open. This article from the National Council of Nonprofits has more information to keep in mind when managing nonprofit employees.
How A PEO Helps Your Nonprofit Overcome Those Challenges
Thankfully, leaders have an option for dealing with the budget, expertise, and liability issues their nonprofits face: professional employer organizations (PEOs). Here are six ways partnering with a PEO helps your nonprofit:
1. You get expertise in compliance issues.
When you partner with a PEO like Genesis, we advise you in areas of compliance, so you don’t have to figure out tricky regulatory issues alone. We know you can’t afford to have any missteps. If you’re operating on grants, for example, your grant application must show you’re an employer in good standing, and that you meet all state and federal requirements for a company your size.
Frankly, some nonprofits don’t have the knowledge to handle compliance issues alone, and providing incorrect answers to these questions can be a liability. That’s when it’s imperative to have a PEO partner who is expertly mindful of compliance challenges and can advise you. At Genesis, we help our nonprofit clients by creating and establishing handbooks that cover required policies, addressing compliance issues, and clearly mapping out the information that needs to be communicated to employees.
Looking for a nonprofit employee handbook you can use to create your own? Download our free template today.
2. You can offer more robust benefits to your employees.
When your nonprofit partners with a PEO it becomes more competitive with larger companies. At Genesis, we give nonprofits access to a portfolio of benefits they could not get on their own—Fortune 500 benefits, health insurance, and more choices, which evens the playing field and allows you to attract better talent. Read more about the benefits packages and insurance offerings you could get if you partner with Genesis.
3. You can devote more time to your cause.
With the help of a PEO, you will spend less time on things that don’t contribute to the mission of your nonprofit, freeing up time to spend working toward your goals. And you’ll have peace of mind when you choose a PEO like Genesis—we’re ESAC accredited and an IRS Certified PEO, which is proof we take compliance seriously. We undergo a major audit each quarter that keeps us in good standing. This type of accountability is something your board of directors shouldn’t overlook. Learn more about how being a Certified Professional Employer Organization sets us apart from other PEOs.
4. You stay in control of your organization.
Don’t worry that you will no longer be the decision maker of your nonprofit if you partner with a PEO. In a coemployment relationship with a PEO like Genesis, both organizations have a contractual allocation and sharing of employer responsibilities. In plain English, that means the PEO legally assumes some of the administrative burden and liability of being an employer, which allows you to have a sharper focus on your business. (Learn more here: What is co-employment and what is not?)
Two More Advantages of Choosing Genesis As Your PEO
5. You get a relationship-focused team that gets the job done.
Many of our clients note that one distinct advantage of choosing Genesis is the relationship-focused service we offer. They like that we are people you can get in touch with quickly. And it’s true! To us, you’re not strangers or a client number: We know you and you know us, which allows us to provide a personalized approach to meeting your needs.
6. With Genesis, you get a PEO partner who values community as much as you do.
At Genesis, we care about our community as much as you do about yours. We’re active supporters of our region; we’ve even established an annual event that raises funds for our neighbors. Our desire to have a positive impact makes us good potential partners—and speaks to our integrity-based approach to HR management.
Ready to learn more?
We’d love to explain how a PEO works and what co-employment could do for your nonprofit organization. Let’s schedule a free discovery call now to talk about how Genesis HR Solutions can help relieve your organization of the burden of HR, payroll, benefits administration, and more.