New data: Simple HR practices strengthen non-profits

Small, routine practices have been found to quietly shape some of the biggest positive outcomes for non-profit employees.

HR practices, including formal onboarding, performance reviews, pay transparency, salary reviews and equity policies, are all tied to higher levels of employee satisfaction.

Yet, 68 per cent of non-profit employees say their organization does not have all five of these core HR practices in place, according to the latest data from Future of Good’s Changemaker Wellbeing Index. 

“What’s striking is that these aren’t complex HR practices, yet a strong majority of non-profit employees still don’t have access to all of them,” said Steven Ayer, president of Common Good Strategies. 

The data shows workers earning less than $35,000 have access to fewer HR practices, on average, than those earning more than $100,000.

“Smaller non-profits are much less likely to have basic HR practices in place, even though those practices matter just as much for their staff,” said Ayer.

Many of these HR practices are linked to better outcomes and are low-cost, said Ayer.

This presents an opportunity for non-profits of all sizes to enhance job quality and wellbeing, he added.

“HR is often treated as administrative, but the data shows these practices are linked to building healthy, resilient organizations,” said Ayer.

Why fundamentals fall short

Limited resources and tight budgets can often lead non-profits to overlook basic human resource practices, according to Nora Jenkins Townson, founder and principal of Bright and Early, an HR consultancy for non-profits.

“Often organizations are doing a lot with a little,” said Jenkins Townson. 

“It’s one of those things that kind of falls by the wayside with so many different things on their plate.”

However, making an effort to prioritize the five practices can make a measurable difference for non-profits.

The report found that only about half, or 56 per cent, of non-profit employees surveyed say their organization has a process for salary reviews or raises.

Formal salary reviews were tied to much more than pay, transparent compensation practices correlated with stronger perceptions of equity and inclusion.

“You could have a really well-designed pay practice and wage grid, but, if you don’t communicate to your team, how was it made, how does it reflect our values, what are we rewarding?” Jenkins Townson asked.

“When there are gaps in information, our minds tend to fill that,” she added.

The data shows that uncertainty about pay rules, performance reviews, or equity policies can hurt employees just as much as having no policies at all.

“If you have an explanation for how [the budget] works, that is often more engaging than just having nothing and paying a bit more.”

The report also found that nearly 40 per cent of non-profit employers do not have a formal onboarding process, including those who were unsure. 

“This is a moment where you can feel welcomed and you can feel engaged and you can feel really brought into the mission,” she said. “Or you could be kind of left to sink and figure things out on your own.”

Staff in organizations with formal onboarding report stronger empathy among coworkers, clearer role expectations, a stronger sense of workplace belonging and better access to the tools needed to do their job effectively, according to the data.

New staff who received formal onboarding also report higher job satisfaction and intention to recommend their employer.

“The report shows that these things really do make a huge impact in the experience employees are having, how engaged they are, and the quality of the work that they’re able to do based on that,” said Jenkins Townson.

When HR practices exist, job satisfaction rises

Staff in large organizations report having more HR practices than those in smaller non-profits.

UNICEF Canada is an eight-time winner of the National Non-profit Employer of Choice award, most recently undergoing a company-wide refresh of their vision, mission and values.

“Non-profits have a challenge to recruit and attract but there’s also lots of opportunities,” said Jodi Rawn, vice-president of people and culture at UNICEF Canada.

Beyond formal HR systems, she said it’s important to invest in small but consistent practices to support retention, including regular team updates and leadership coaching, maintaining hybrid work, and adding extra days off to statutory holidays.

“It’s really thinking about how we can create flexibility and wellness instead,” Rawn said. “Sometimes our work can be challenging but rewarding, and we’ve tried to double-click on fun. It’s not a formal KPI, but laughter could be an informal KPI that we do.”

Organizations with more comprehensive HR practices consistently show stronger job satisfaction, wellbeing and confidence at work.

Overall, HR practices have a cumulative effect, the data shows.

“As we know, in the non-profit sector, we are often grappling with tighter budgets, but it doesn’t make our need for people and talent any less.”

Turning insights into action

The report shows an opportunity for small and growing non-profits to stand out, as many of the core HR practices do not require large HR departments or additional funding.

“When [non-profits] are smaller, they don’t need this kind of full suite of really complicated programs and policies, you can have the basics and scale them up from there,” said Jenkins Townson.

Workers in organizations with all five core HR practices have an 84 per cent job satisfaction rate.

Given all the data, the report suggests that HR practices should be viewed as a ‘foundational infrastructure’ rather than just a compliance measure.

“Even if you have a vision for where you want to go in the future, outlining that to folks, even if you’re not able to get there yet or build to that yet, that can help, that communication can help bring folks along,” said Jenkins Townson.

Clearly communicating regular feedback, straightforward onboarding, transparent pay processes, and visible equity policies are critically important, as uncertainty about whether these practices exist is associated with outcomes similar to having no policies at all.  

“I think it makes a lot of sense to have a really well-defined mission and values because, when we’re building out something like onboarding or hiring or how we reward people, we always want to tie that back to those strong values,” she said.

“HR practices do have an impact on how people are engaged with the missions and then also on the work that they do.”

Click this link to read the full report.

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