Can Non-Profit Organizations Be More Efficient with a PEO?
Operating a non-profit organization can be both highly rewarding and challenging at times, especially during troubled economic conditions. Some of the biggest challenges alone come from the management of critical “people” aspects of running a non-profit smoothly. Without clear and consistent human resource management processes in place to recruit, train and provide payroll and benefits to your non-profit staff, even the most exceptional organization will suffer. While you may have not previously considered this idea, a professional employer organization (PEO) can be a solution to this dilemma.
According to a recent joint presentation by Atlas of Giving and Charity Navigator, two well-respected industry evaluators of non-profit performance, in 2013 charitable giving made history by crossing the $400 billion mark in the United States. However, in 2014 giving is expected to be modest at best. Initial expert forecasts are estimated to be around a 4 percent increase in charitable donations for the coming year. Yet, demand for non-profit services continues to increase at a faster rate than many organizations can keep up with. Post-recession economic factors and a reduction of human services funding are still affecting many non-profit organizations, forcing them to think outside of the box in terms of how to best manage their human resources outsourcing (HRO) going into the next decade.
Learning About PEO Options for Non-Profit Organizations
Professional employer organizations offer multiple human resources services to profit as well as non-profit organizations. Think of the PEO as a partner to the organization, an agency that looks out for the human capital management aspects of the non-profit’s health. For example, suggested PEO human resource services could include timekeeping and payroll administration, employment benefits and taxes, and employee assistance program management. The PEO could even put your organization in touch with money-saving services that can help stretch the budget for all your staffers, including shopping and travel discounts, fitness and health membership discounts, and even special insurance and assistance programs such as health, life and retirement coverage.
Increasing Non-Profit Efficiency with a Professional Employer Organization
There are several ways that using a PEO can help support efficiency for your non-profit organization. Outsourcing many of the important nonprofit business administrative tasks such as payroll, benefits, and even recruitment can give your agency the ability to focus on other critical duties such as fundraising campaigns and community awareness. PEO outsourcing enables your organization to transfer resources that would have been used for administrative purposes to other areas of the non-profit, making it more decisive about forward movement and planning. Other ways that the organization can become more efficient through PEO outsourcing include:
- Access to streamlined, up-to-date technology that helps schedule and organize human resources to better meet the goals of the organization.
- On-demand support for various human resource issues and concerns that come up, removing the liability and time required to research employment laws.
- Development of seamless systems that make payroll and benefit administration less time intensive and hands on by internal staff, where mistakes are most made.
Advice on Selecting a PEO for Non-Profit Organizational Success
When choosing the best professional employer organization to provide nonprofit business help, you will want to seek one out that has the proper credentials and the best human resource consulting options. First step’s first – make sure that any PEO you are considering is registered and licensed in the state where it’s required and where your organization operates.
Industry Credentials Matter When Choosing a PEO
Look specifically for accreditation by the Employer Services Assurance Corporation (ESAC), an industry association that’s on par with what the FDIC represents for banks and other financial organizations. Professional employer organizations that provide human resources management solutions must be able to demonstrate that they operate under the highest ethical standards, including areas concerning their financial and operational records management. ESAC-approved organizations go through a stringent review process to earn accreditation and they are continuously monitored to make sure they meet industry standards – meaning you can confidently partner with them for the long term.
Because your organization will be asking the PEO to handle sensitive areas of nonprofit business administration that involves human resources, you will also want to consider going with an agency that has knowledgeable staff who are certified human resource practitioners. The Society of Human Resources Managers (SHRM) awarded by the Human Resources Certification Institute, assigns PHR and SPHR credentials to human resource professionals who have demonstrated their skills and knowledge in the industry. Ask if the PEO has consultants on board who are certified human resource professionals, a factor that gives you even more confidence in their ability to handle complex personnel matters.
If you need support locating a qualified professional employer organization that can support your human resources management, SourceOne Partners can help! We have PEO networks in South Florida, New Jersey and Pennsylvania ready to transform your non-profit organization into a well-oiled machine. Contact us online or call us at 561-674-0748 to get more information on the right PEO for you.