Human Resources Challenges for Not for Profits Organizations

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“Human Resource Management refers to all management and leadership practices involving the coordination of paid and or unpaid members of a social, political, cultural, or economic enterprise , to work towards achieving organizational goals.” (Murray, 2006) To put it simple then, Human Resource Management deals with the administration involved with the hiring, training, compensating and firing of employees for an organization. This outlines the role of human resources for both the not for profit and for profit sectors. The not for profit sector however does have some differing aspects added to it. These include the governance structure, incentive structure, and a large reliance on volunteers. Along with these differences come greater challenges. What are some of these challenges? And what can not for profit organizations do to overcome these challenges? There is a tendancy at times to expect employees of not for profit organizations to work at levels and types of compensation that are sometimes significantly less than those working for for profit organizations. This no doubt at times is a reality because of budgetary restraints common to many not for profit groups. There are also many employees who feel that because they work for a not for profit, they should not expect similar compensation to those in the for profit realm. Another reason for this tendancy is that some not for profit organizations do not feel an obligation to provide compensation anywhere near the same level as for profit corporations. Instead they rely more on the self sacrificing spirit of the employee to want to make a difference in their community. (Nonprofit Organizations) What can not for profits do to attract qualified employees? Often salaries at not for profits are less than those employed with for profit businesses. In such cases there may need to be some creativity involved in

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