Quick look: Non-profits play a crucial role in advancing social causes and providing support to communities in need. However, like any other organization, they also face challenges in managing their HR functions. That’s where professional employer organizations (PEOs) come in handy! In this blog, learn about five HR benefits non-profits can achieve with a PEO partnership.
Changing the world for the better is no easy task. Non-profit organization leaders oversee numerous business responsibilities to ensure their mission needs are met. However, focusing on those responsibilities can distract non-profits from completing core HR strategies that both empower and protect their team.
That’s why more non-profit organizations are finding solace by partnering with a professional employer organization (PEO). Discover five impactful benefits a trusted PEO partner can provide with non-profit HR solutions.
What is a PEO?
A PEO is an HR outsourcing firm that helps small- and medium-sized businesses (SMBs) manage crucial employee tasks like benefit administration, recruiting, payroll, and risk management.
Acting as a co-employer, a PEO partners with a business by becoming the professional employer of that business’s workers, who are referred to as worksite employees (WSEs).
In exchange, the PEO offers access to vital HR services such as payroll administration and premium benefits packages while also having their expert specialists lead the strategy and execution of specified people operations.
How PEOs benefit non-profits
A trusted PEO understands being knowledgeable of their partners’ industries helps pivot the success of their intricate HR services. Though non-profit HR concerns within the industry have changed over the years, PEOs pride themselves in thoroughly researching the challenges affecting these organizations in order to provide beneficial solutions. Here’s a look at five such HR benefits provided to non-profit partners.
1. Recruit the right people
A mission can’t move forward without a team dedicated to the cause. According to Statista, 63% of non-profit organizations saw staffing shortages and recruiting difficulties as their biggest challenge in 2021. These setbacks not only delay overall business growth but limit an organization’s capacity to conduct outreach efforts within their communities.
PEOs counter these challenges by providing recruitment and hiring solutions. From crafting the perfect job description to offering advice on interviewing techniques, PEOs help their partners tap into diverse talent networks and attract highly qualified candidates for open positions.
ExtensisHR, for example, offers full-cycle recruiting services at no added cost to their PEO partners. In other words, non-profits can achieve detailed and expert assistance with growing their employee base without adding pressure to their HR budgets.
Post-hiring, a PEO can also help create an onboarding strategy that elevates the success and retention of new hires on day one.
2. Access better benefits
Non-profit ventures thrive on finding newfound ways to nurture the communities they serve. It is equally as important for these organizations to consider what can be done to properly nurture the well-being of their employees.
According to one 2023 Zippia study, 45% of surveyed non-profit employees state they’re likely to quit their jobs by 2025 due to high burnout rates. Failing to protect a team’s physical and mental health threatens employee retention rates and greatly dampens their productivity while on the job.
PEOs support employee well-being by offering premium healthcare benefits to their customers. These diverse benefits give SMB employees access to enterprise-level packages for life, dental, and vision insurance.
3. Gain proficient payroll assistance
The time and effort non-profit employees put into their work should never go unnoticed. However, in an industry where seasonal workers are as commonplace as full-time workers, poor payroll practices such as missing pay dates diminish employee trust and retention while also putting non-profit HR teams at a higher risk of dealing with expensive missed payroll penalties.
By partnering with a PEO, non-profits leverage a team of payroll experts who manage employees’ pay schedules with the help of innovative, cloud-driven software and advanced reporting tools.
In addition to overseeing key financial operations, they ensure details related to employees’ W2 forms, 401(k) deposits, and other relevant tax information are collected and distributed to the proper employees when needed.
4. Stay ahead of compliance laws
Navigating the ever-changing landscape of government laws and restrictions has been a critical challenge for 56% of non-profits. Losing sight of active regulations causes non-profit organizations to face various risk, from expensive fines to forced organization shutdowns.
Risk and compliance experts within PEO firms dedicate their time to understanding core regulations connected to non-profits. These professionals then turn their regulation research into actionable items that help non-profits ensure their businesses are and remain compliant.
By gaining this additional layer of compliance law awareness, organizations can spend less time fearing government penalties and more time pursuing their mission.
5. Free up time for board members
A board member’s unique leadership role helps turn a non-profit from a passion project into a fully functioning organization. Acting as beacons of business strategy, non-profit board members use their professional expertise to handle key priorities such as advocating the organization’s mission, ensuring ethical integrity is maintained, and strategizing clever methods to improve current programs and fundraising efforts.
However, an organization’s heavy reliance on board members can lead these members to be pressured into taking on non-profit HR tasks such as handling entire recruitment processes and actively checking the business’s compliance with regulations. This excess of responsibility causes burnout, which 60% of non-profit leaders report feeling at the end of the workday.
Fortunately, PEOs are fully equipped to manage overlooked but imperative HR tasks with ease. Instead of adding extra burdens on board members, non-profits can tap into their PEO’s staff of experienced professionals to receive top-tier HR support across numerous tasks.
Non-profit board members then receive more free time to be an engaged organization leader, giving them the opportunity to publicly advocate, fundraise, and network on the organization’s behalf on a more consistent and proactive basis.
Unlock a better HR tomorrow with PEO support
Non-profit organizations are continually faced with multiple HR responsibilities while pursuing their mission. If those responsibilities are neglected, the productivity and retention of their team can gravely suffer. However, the time needed to take on such non-profit HR responsibilities can distract organizations from fully engaging in the priority business efforts driving their mission’s success.
Thanks to PEO partners like ExtensisHR, non-profits can address and solve HR needs without sacrificing their team’s dedication to their cause. From highly trained specialists to proven expert solutions, PEOs allow non-profits to lead a better tomorrow without jeopardizing their employees’ efficiency, compliancy, and well-being.
Want to elevate your non-profit organization with expert PEO solutions? Schedule a meeting with the ExtensisHR team to learn more about our partnership opportunities today!