In recent years, businesses have faced numerous challenges, and the nonprofit sector is no exception. Organizations that rely heavily on fundraising, donations, and volunteer services have found it increasingly difficult to fulfill their missions of helping those in need due to various constraints and less disposable income available for many contributors. With less flexibility, nonprofits have taken quite the hit. According to the FORVIS 2024 State of the Nonprofit Sector Report, rising costs and inflation are squeezing nonprofit budgets, with nearly half of nonprofits reporting increasing operating expenses. Moreover, 74% of nonprofits surveyed said they are struggling to recruit and retain qualified staff, due in large part to competitive wages offered by the private sector.
According to a recent study by FORVIS, a leading accounting and consulting firm, 71% of nonprofits saw increased demands for their programs and services in 2023. This increase in demand has resulted in longer waitlists and delays. This has left many nonprofits in a challenging position.
Leveraging HR and payroll software technology can empower nonprofits to deliver on their missions more efficiently and cost-effectively. UKG for Nonprofits offers HR and payroll software to help you run an efficient and successful operation. While investing in a solution may seem like a challenge when you have limited funding, the long-term benefits you will reap could be substantial. For example, Pace Center for Girls saw over a 1,000% return on their investment.
Here are some of the many benefits nonprofit organizations can realize with the right people technology:
1. Optimize limited funding to deliver to more in need
In the dynamic environment of nonprofits, employees often find themselves working across multiple departments, and the allocation of labor can vary significantly. To manage labor expenses effectively, it’s crucial to have an automated time and cost management system. This system can provide a comprehensive and accurate view of your budget, which is critical for optimizing limited funding. By replacing outdated manual systems with automated solutions, this task becomes less daunting, freeing up more resources for those in need.
2. Meet demand with proper scheduling
Employees in nonprofits may be involved in various aspects of the organization and might work outside their regular hours. To manage these variations, automated scheduling tools can be of great help. These tools can identify appropriate scheduling based on the organization’s needs and notify users of labor rules and company policies, making workforce management more efficient and less stressful.
3. Hire a strong workforce that stays
The success of any organization, especially nonprofits, hinges on finding and retaining quality employees. To aid in this process, nonprofits can greatly benefit from talent management software. This software can help find the best candidates and onboard them efficiently. Moreover, it can monitor employee engagement and satisfaction, which is key to ensuring the organization’s mission is achieved.
4. Gather insights for continuous improvement
Each year presents new challenges, but with the right tools, success can be repeated. It’s important to identify areas of improvement and use workforce data to make informed decisions. Tools that offer real-time insights and allow for immediate adjustments to budgets, schedules, and other factors can keep organizations on track towards achieving their goals. This data-driven approach can be invaluable for accomplishing next year’s goals or even exceeding them.
The sentiment of supporting those around us today is stronger than ever, and nonprofits continue to fulfill their communities’ needs despite the additional hurdles they have been presented with. Managing a successful nonprofit operation is both a necessity and a challenge. Workforce solutions, such as UKG for Nonprofits, can help improve and advance your company’s mission, so investing now can make your next year the best one yet.
See how your nonprofit can use technology to be sustainable in the years ahead.
