Adding employees can help your nonprofit improve programs and reduce the burden on an overstretched team. But hiring is a significant and potentially long-term commitment. Before recruiting, take a close look at the work that needs to be done, the resources available and whether a new employee is the best solution.
First, determine whether you really need to hire. Even if you plan to expand services or introduce new programs, existing employees may have capacity you can redirect to understaffed projects. Carefully review your nonprofit's priorities and consider eliminating or scaling back programs that aren't meeting expectations.
Volunteers may handle certain activities, but they generally shouldn't replace paid employees or carry out work that would otherwise be performed by regular staff. Also, paid employees generally can't volunteer for their employer to provide the same type of services they're employed to perform.
Other alternatives include reorganizing responsibilities, cross-training current employees, automating routine processes and creating part-time positions. Also consider whether a role can be performed remotely or under a hybrid arrangement. Flexibility may broaden your applicant pool, but the arrangement should fit the position's responsibilities and your organization's supervisory and operational needs.
The second major consideration, of course, is money. Some nonprofits have sufficient donor support, grant funding and reserves to expand their teams. Others are struggling with rising costs or uncertain revenue. Wherever your nonprofit falls on this spectrum, make sure it can support the position over the long term rather than relying on funding that may soon expire.
Remember that the cost of a full-time employee isn't limited to salary or hourly wages. Your nonprofit also may incur payroll taxes, employee benefits, recruiting and background-check expenses, equipment costs, training and other overhead. Budget for the full cost before approving the position.
Outsourcing may be a cost-effective alternative, particularly for specialized functions such as accounting, IT and HR. However, outsourcing isn't automatically less expensive or easier to discontinue. Compare fees, contract terms, service levels, data security practices and continuity risks before choosing a provider.
Be especially careful when engaging an independent contractor. Simply calling someone a contractor doesn't make that classification correct. Federal tax and wage-and-hour rules apply separate tests based on the facts and circumstances of the working relationship. Federal tax rules generally focus on control and independence, while wage-and-hour rules generally focus on economic dependence. State laws may also impose additional or different requirements.
Hiring decisions should support your nonprofit's mission and reflect its responsibility to use resources wisely. Before moving forward, define the need, evaluate the alternatives and compare the full cost with realistic revenue projections. We can help you assess the financial impact of adding staff and determine whether your budget can support the commitment.
Get in touch today and find out how we can help you meet your objectives.
