How the Not-for-Profit Sector Can Overcome Challenges

Effective management of budgets is increasingly paramount for not-for-profit organisations.

The not-for-profit (NFP) sector in Australia faces unique challenges. While NFPs carry out important work in communities, a research paper released by InSync Surveys found that budget constraints are often a key problem in retaining quality staff.

Managing individual client budget’s is especially relevant in the face of the National Disability Insurance Scheme (NDIS), which can cause fluctuations in payment for services and requires precise management and costing of labour and services for each individual client.

In comparison to their corporate counterparts, not-for-profit organisations had three main HR challenges to contend with, all of which are related to funding.

First, a lack of recruitment budget means that they cannot afford to advertise jobs widely, resulting in a smaller talent pool of applicants. Second, a lack of resources also results in lower salary packages. Third, potential job candidates whose values strongly align with not-for-profit organisations may not be sufficiently trained for the roles on offer.

“Limited funds not only mean lower salaries but it impacts on the whole hiring process. A lack of job advertising budget can result in smaller candidate pools, putting pressure on HR professionals to hire staff who don’t always have the skills required for the job,”  InSync Survey’s CEO, James Garriock said.

An innovative solution in the face of fluctuating resources from government funding and fundraising could be the minimising of administrative costs.

According to payroll expert Tracy Angwin, payroll is a substantial cost that is often regarded as an unavoidable necessity. However, there are now ways in which technology can be utilised to maximise efficiency and minimise cost.

Affinity helps you organise your budgets down to the project, task, and person.

Affinity delivers such solutions on a single platform using cloud technology. Designed with large organisations of over 200 employees in mind, Affinity consolidates and automates payroll processes , time and attendance and roster management to improve workflow and reduce labour costs.

The system provides NFP organisation with one single system to track and capture labour costs against cost centres, projects, clients or jobs. In particular for NDIS requirements this helps with monitoring and managing labour costs as they occur and avoiding budget overruns for specific providers and clients.

Efficiencies gained by correct NDIS reporting can be redirected to the hiring and retention of high-calibre practioners which are pivotal to ensuring NDIS service delivery standards are met.  For more information, contact us for a chat today.

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