How Nonprofits Can Realize the Benefits of HR Technology
If you’re a growing nonprofit, identifying and implementing more HR technologies can save you time, reduce errors, and reduce manual tasks.
HR manages the recruitment, selection, hiring and onboarding of every new employee in your organization. Often times in non-profit organizations you also have freelance project workers who also receive grants for a short period.
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Being able to make strategic decisions regarding long-term growth includes planning the growth of your HR technology with you. This means identifying how you are currently using HR technology, and then planning how you will use it over the next twelve to eighteen months.
Here are some basic questions to help you identify the current benefits of your HR technology:
- Does your current technology system support all of your HR needs?
- Does your system require a lot of learning time for new HR hires?
- Do you use spreadsheets to manage most of your financial reports?
- Does your current technology system offer cloud-based technology?
- How do we benefit from the technology we are currently using?
- Does it save us time?
- Does this reduce the need for manual data entry?
- Can we easily generate reports for the management team, donors, grantors and audits?
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These questions are good to discuss with your HR staff to better understand how your current technology supports you and whether or not it can evolve with you over the long term.
No matter what HR technology system you currently have, there are six ways for nonprofits to use HR technology for years to come.
Reduce manual workload
Do your staff spend a lot of time offline, collecting numbers and compiling spreadsheets in order to track your payroll or produce reports for licensors or audits? Using integrated human resources software allows you to significantly reduce this time, as you can easily import and export data for reporting, as well as producing tax and GASB compliant data.
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Prevent manual errors
When managing full-time, contract or short-term employees, manual errors can occur in onboarding, payroll, benefits and compensation. Using a robust HR solution reduces manual errors as most of the calculations are done automatically in the system.
Better reporting, an audit trail, and adherence to payroll grants give nonprofits an edge in their competitive market.
Track your budget in real time
For many nonprofits, payroll is one of the biggest expenses on a budget and in any given year, nonprofits see a flow. Being able to pull the numbers out of your budget and see a real-time view is essential to anticipating your nonprofit’s capabilities in staff expansion. Budget monitoring also affects requests from licensors as well as compliance and audit needs. If you handle most of your budget management manually, it might be time to explore HR technology that helps you cut down on these manual tasks. For example, does your current technology ensure that you don’t have duplicate employees on your records?
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Provide important data for licensor reports
Applying for grants requires payroll reports that easily show your current staff, as well as the opportunities that an additional grant may offer you in regards to hiring new staff for a larger mission effort during your year. current budget. Making sure that you are able to easily extract and track your employees’ compensation helps you identify specifically for licensors why you would benefit from a grant that helps fund employee salaries within your organization for purpose. non-profit.
Reduce audit errors
Automating much of the data entry can reduce your annual audit errors. In payroll, errors can often be found when creating duplicate employee record entries, complex salary calculations, or filing W-2 tax forms for IRS requirements. Using technology that detects variances in your payroll budget or duplicate employee records helps prevent fraud and ensure cleaner audits in the long run.
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Improve employee access to benefits, payroll and information
Your employees are essential to expanding the mission of your nonprofit organization. To attract and retain the best talent, your HR technology can and should enrich the employee experience. By having 24/7 availability on W2 benefits, compensation and information, you can provide employees with easier and more secure access and efficiency value by allowing them to see their information as it is and where they need it.
Using technology that helps you work smarter, not harder, will also give your nonprofit the opportunity to expand and develop its mission, staff, and services within your community.