Find the best HR Software for Nonprofits

When running a nonprofit, managing the human resources (HR) aspect of your organization is often a huge challenge. You have to deal with full- and part-time staff as well as volunteers. Most of them don't work from the office regularly and may be located in (or frequently traveling to) other cities or states.

To top it all off, nonprofits have distinctive staffing needs. For instance, zoos and aquariums need seasonal volunteers during the holidays. Aid organizations regularly recruit local personnel in different regions or countries, while disaster relief organizations have to quickly move their personnel to affected areas.

Despite these unique needs, nonprofits don't often have huge budgets or a skilled IT team. For this reason, you need HR software that's specifically suited to nonprofit organizations.

HR software for nonprofits allows you to organize the information of each person, track attendance and time off, and automate payroll and benefits. It can streamline recruitment and manage training modules for employees and volunteers.

This guide aims to help you find the right HR software for your nonprofit. Here's what we have covered:

• What is HR software for nonprofits?

• Common features of HR software for nonprofits

• What type of buyer are you?

• Benefits of HR software for nonprofits

• Key considerations when buying HR software for nonprofits

What is HR software for nonprofits?

HR software for nonprofits are tools for managing, recruiting, and training an organization's employees and volunteers. Some solutions, such as CiviHR, have been designed specifically for nonprofits. However, a few generic HR solutions can also suffice for the needs of most nonprofits.

An employee profile in CiviHR (Source)

HR software is broadly categorized into the following three types:

Human resource information system (HRIS): This is a tool to manage, track, and automate the core HR needs via a digital portal. It includes features such as personnel tracking, payroll, benefits, time and attendance, and recruiting. However, not all HRIS vendors offer all five features—some only offer personnel tracking or 2-3 features.

Employee dashboard in BambooHR (Source)

Human resource management system (HRMS): This is an integrated suite that combines core HR functions with analytics. It helps you analyze trends and create reports. Though it's similar to an HRIS, an HRMS offers talent management and performance review in addition to the core HR features.

Performance reviews in Namely (Source)

Human capital management (HCM): This covers a wide range of core and strategic HR functions. An HCM tool can handle the entire employee lifecycle, from recruitment, to management, to development, to retention. Gartner's Market Guide for HCM Suite Applications report (content available to only Gartner clients) notes that HCM features support the following four key capabilities:

• HR administration: Organizing and managing an employee's personal information, benefits, and payroll.

• HR service delivery: Creating an organizational knowledge base and providing access to policy and procedure guidance.

• Talent management: Recruiting, onboarding, and managing employees as well as enabling learning and development.

• Workforce management: Managing scheduling as well as tracking time and attendance.

HCM solutions also offer advanced analytics and reporting.

Succession planning in Workday (Source)

To help you understand which type of HR solution will suit your nonprofit, our HRIS vs. HRMS vs. HCM: What's the Difference? report tackles the differences and lists some of the popular solutions in the market.

Common features of HR software for nonprofits

Most HR solutions aimed at nonprofits offer the following essential features:

According to our research, these are the common features of a GPS tracking solution:

What type of buyer are you?

Nonprofits of different sizes and types will have different requirements from HR software—for instance, not all of them will need the same features. Hence, you should understand your needs as a buyer before choosing a solution. In general, nonprofits that need HR software fall into one of the following categories:

• Grassroots nonprofits: These nonprofits have an annual budget of up to $1 million. They likely have a small team of full-time employees and seasonal volunteers, based in one location. They may not have a dedicated HR or IT staff. For these reasons, these buyers can use a basic HR solution with payroll and time and attendance functionalities.

• We recommend exploring free versions of generic HR software as well. If the free tools don't meet your basic needs, check out cloud-based solutions. The primary benefit of cloud software is that it eliminates the costs of implementing and maintaining the tool. The vendor undertakes these tasks, with the cost included in the per user monthly fee.

• Small and midsize nonprofits: Such nonprofits have an annual budget of $2-10 million. They likely have more fixed staff and seasonal volunteers than grassroots organizations. They could be working on one or multiple projects, and be based out of one or multiple locations. They may also have dedicated HR and IT personnel and a defined budget for these functions.

• A huge challenge for them is managing volunteers and requests for volunteering, internships, and part-time jobs. These buyers should consider cloud software that offers personnel tracking, applicant tracking, performance management, and the core HR features. Check with your vendor about enrolling the seasonal volunteers for free.

• Large nonprofits:These buyers have an annual budget over $10 million. They have numerous full-time staff, seasonal volunteers, and part-time workers. They could have projects in more than one country that also require managing travel. They need communication tools to stay remotely connected with staff in different countries.

• With bigger budgets, they should consider an HCM solution with numerous features, including recruiting and hiring, compensation management, and learning management. We recommend checking both on-premise and cloud-based solutions. While you can fully customize on-premise tools, cloud software allows your staff to work remotely.

Regardless of your nonprofit's size, check out our 10-step guide to selecting the right HR software and tips on saving money while buying HR software.

Benefits of HR software for nonprofits

HR software helps nonprofits create and follow a standardized process for everyday HR tasks, thus improving the organization's efficiency and effectiveness. Here's a list of the software's key benefits:

• Manage staff and volunteers efficiently: The software makes it easy to schedule slots for your volunteers and staff so that you can maximize their hourly productivity. It also helps you avoid overstaffing or volunteers sitting idle.

• Maintain accurate personnel records: With organized and accurate records for each employee and volunteer, you won't have to go searching for contact details, leave history, or financial details. The software prevents incorrect salary deductions or inaccurate records on health or insurance plans.

• Automate repetitive HR tasks: If you have frequent volunteer and staff changes, you may be spending a substantial amount of time on repetitive tasks and processes such as onboarding, payroll, and expense reporting. The software can automate these tasks and save you a lot of time and effort.

• Streamline recruitment, hiring, and staffing: The software streamlines recruiting and hiring to help you find volunteers with the right experience. It helps you prepare for seasonal staffing needs by reducing the time taken to review applicants and set up interviews. It also helps you create staffing plans for contingencies.

Key considerations when buying HR software for nonprofits

After detailing the features and benefits of the software, let's look at a few key considerations. Keep these in mind as you begin the selection and purchase process:

• Use a features checklist: Whether you are a grassroots, small, midsize, or large nonprofit, it's important to identify what you require from the HR software. Our HR software needs cycle report will help you create a features checklist. Check the features offered by a vendor to find the right solution and avoid overpaying.

• Review pricing and hosting models: Deciding the deployment model is crucial. Cloud solutions have no hosting costs and offer per user/month plans. On the other hand, you pay an upfront fee to host and maintain an on-premise tool on your own servers. Read our reports on HR software pricing and hosting models and typical costs of HR software.

• Check the tool's scalability: Most vendors allow you to scale-up when your user numbers increase. But you also need to scale down when seasonal requirements end. Check with the vendor on scaling down, the time to implement, and any additional fees. Ensure that your final agreement reflects these conditions and offers you this flexibility.

• Assess the usability: Some solutions can be "clunky" and hard to use, resulting in an unpleasant user experience. To get the maximum return on your investment, thoroughly review a solution's user experience and interface. Sign up for software demos and trials to get a feel of the tool.

• Ask for discounts or donations: Some vendors have standing discounts for nonprofits, while others donate their software. Check out our How to Get Nonprofit Software Discounts report for more details.