How can HR software help nonprofit organizations - customers inside a non-profit store

How can hr software help nonprofit organizations?

Saturday, December 13, 2014

Automating human resources management at nonprofits with the help of technology

For nonprofit organizations to successfully achieve their mission and vision, it is necessary to have the right people working together and have efficient management of your entire team. Successfully implementing high-quality workforce management ensures the retention of top talent for the nonprofit organization to accomplish organizational goals. From onboarding new hires to performance management to monitoring the overall employee experience, human resources management involves an array of HR tasks and HR processes. Non-profit organizations, whether educational institutions, charities, or faith-based organizations, have a unique opportunity to leverage new technology tools and software solutions to support HR management needs and maintain effective business operations. Moreover, the spectrum of nonprofits is vast; some teams operate with a small workforce while others have hundreds of employees with offices worldwide. No matter your nonprofit’s focus , all nonprofit organizations can benefit from software that supports HR functions, processes, and procedures.

This article will outline how HR solutions, like HR software, can help a nonprofit organization with all aspects of business, especially with working towards the overall priorities and goals of the nonprofit. The benefits are discussed below, along with the opportunities for integration with other software and digital systems.

How can HR software help a nonprofit organization?

There are many ways that HR software adds value to the operations of a nonprofit organization. As with business, automation and technology help leverage existing skill sets at nonprofits. Below are some of the most critical ways that management software can support the operation of a nonprofit organization.

  • Improve efficiency. The automation of manual tasks helps businesses of any kind, including nonprofits, save time. This way, employees can focus on other aspects of their role, whether strategizing, connecting with donors, or planning for the implementation of a project. HR software offers full-scale functionality for any HR tasks an organization may need to complete. For example, employees can utilize automation with applicant tracking systems that automatically organize potential employees’ data, applications, and information.. Additionally, once a new employee joins the team, HR software can store employee data so that tasks related to benefits administration can be completed automatically.
  • Organizing documents and maintaining secure document storage. Management software allows for the secure storage of sensitive documents, especially employee information. Documents can be organized, categorized, and visible to the employer and the employee. Moreover, HR software systems offer encryption and secure servers so that nonprofits can have peace of mind that their data will be protected.
  • Automating reminders. Nonprofits with employees need constant reminders for important HR tasks to complete, like payroll processing, performance reviews, healthcare enrollment, and various employee approvals for requests. HR software systems can be customized to provide regular reminders so that employees can trust that all tasks will be completed on a regular, consistent basis.
  • Project and task management. Employees at nonprofits often fill many roles across different parts of the organization. Talent management software offers organizations the ability to track projects and tasks assigned to various employees so that managers can monitor performance and productivity. Project management features benefit small nonprofits and are agile and lean in business operations.
  • Grant funding tracking and management. Funding is the life source for nonprofit organizations, so having a full-scale system that can track grant applications and funding is essential for a nonprofits’ success. Instead of relying on spreadsheets, nonprofits can utilize quick and efficient technology that organizes grant data in real-time. This can support the development of fundraising strategies and overall communications with an organization's donors.
  • Better workflow with access levels. Because employees of all types can access the HR software, it is necessary that various access levels are set with the software. By doing so, the information is made available to the parties who need it. That way, managers can trust that associates at the organization will not have access to sensitive information but still be able to access data that is necessary to their role. Restriction and access levels are significant for nonprofit organizations that experience changes in staffing or employees more regularly.
  • HR software systems include time tracking features where employees can record hours worked and time off requests. Managers also have access to this data and can automatically approve or decline requests through the software system enabling the process to streamline for ease and simplicity.
  • Managing volunteers. For many nonprofits, volunteers are a major way that the overall mission can be accomplished. The ability of an organization to manage volunteers and their talent will translate directly into the outcomes of the nonprofit. HR software systems can manage volunteer data, hours worked, and the various projects they make take on while working for the organization.
  • Managing training and certifications. As part of incentivizing professional development and performance reviews, the HR software system can track and hold information related to training and certifications completed by employees. This can inform an organization on the expertise of their talent workforce and help justify pay raises when performance reviews occur.
  • Employee portal. One of the best values of an HR software solution for nonprofits is the ability for employees to utilize a self-service portal, whether via the web or a mobile app. Employees can access their account to see days off available, wages, paychecks, and other pertinent information in real-time. The increased accessibility can build more transparency and trust in your organization.

HR software for nonprofits is an extension of your organization

In addition to the benefits of implementing an HR software system for the overall effectiveness of nonprofit operations, there are benefits to HR software providing support in other parts of the organization. Most notably, HR software can integrate with payroll software for ease in payroll processing and all things related to compensation.

Integration of HR software and payroll software

  • Easy reporting to track and manage costs. When HR software is integrated with payroll software, complex calculations related to an employee's wages can be done quickly. Moreover, managers can generate reports that provide a broad view of costs the organizations have related to labor and how those costs have changed over time.
  • Tax compliance. Nonprofit organizations must be transparent with funding, use of funds, and reporting taxes paid for employee salaries. Maintaining precise records of taxes will ensure effective tax compliance should the organization be audited at any point in the future.
  • Credential compliance. Some nonprofit organizations have employees who hold specific designations or credentials that make them qualified for their position. Instead of maintaining this information in a spreadsheet or unstructured way, HR software can monitor the credentials held and provide reminders for when renewals may need to occur.

HR software for nonprofits helps the organization achieve their mission

The bottom line of HR software for nonprofits is that your operations will be effective when workforce management is effective. This includes fundraising, communications, networking, marketing social change, and developing a solid base of supporters and employees. HR software can help workflows operate more efficiently so that your organization's mission and vision can come first. Ultimately, that is what makes nonprofit organizations so important in the first place. Now, technology can help organizations get there and take steps towards the future of nonprofit management.


Heartland is ready to help. 

Are you ready to invest in HR software that can help your nonprofit maintain the highest level of human capital management? Are you ready to improve employee engagement and leverage the power and functionality of an HR solution? 
Heartland helps nearly 1,000,000 entrepreneurs make and move money, manage employees and engage customers with human-centered technology solutions that allow them to rise above the daily grind and lead their businesses into a brighter future. Learn more at