HR Workforce Solutions
By Nonprofits, For Nonprofits
Question: We have an employee claiming they shouldn’t be classified as exempt from overtime. If it turns out they’re right, what are the penalties for misclassification?
Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified, how much extra money they would have been paid if properly classified, how the misclassification is discovered, and how your employees react to it.
Generally, if an employee goes to the federal Department of Labor and says they have been misclassified, the DOL will investigate, and they will very likely look at all your employee classifications. Any employee who the DOL determines should have been paid overtime in the last two years will be found to have been underpaid, and the organization will owe that money to the employee now (or three years’ worth if the misclassification is found to be “willful”). The organization will also owe them liquidated damages equal to the amount of money owed. So, if an employee should have been paid $2,000 in overtime, the organization will owe them $4,000. The organization will also owe taxes on those wages and interest on those taxes.
Additionally, many states have their own overtime laws, and in most cases the organization can be held liable under both federal and state law, meaning not only would the employee be owed double under the FLSA, but also any liquidated damages under state law (which could easily triple the original amount). And if you are in a state with late payment penalties, you could owe up to 30 days’ worth of the employee’s pay on top of the already discussed damages. There’s also a very good chance the organization will be held liable for any related attorney’s fees–both your own and the employee’s.
Finally, there are potential federal civil penalties of $2,050 per violation (generally one penalty per misclassified employee), state penalties (which will vary), and in some cases the potential for jail time. As soon as judgment is rendered in favor of the employee, statutory interest will begin to accrue on the amount owed–generally 10% per year.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
With societal shifts, technological advancements, and economic fluctuations, nonprofit leaders must stay ahead of the curve to drive meaningful impact. For CEOs and board members, understanding these trends is crucial for steering their organizations effectively. In this blog, we explore the key trends reshaping the nonprofit landscape and offer insights to help leaders succeed in this dynamic environment.
Understanding the Current Nonprofit Landscape
The nonprofit sector is experiencing significant transformations driven by several key factors:
Key Trends Shaping the Future of Nonprofits
1. Leveraging Data and Analytics
Data-driven decision-making is becoming essential for nonprofits. By harnessing advanced analytics, organizations can gain valuable insights into donor behavior, program effectiveness, and market trends. This knowledge empowers leaders to make informed strategic decisions, optimize resources, and enhance their impact.
2. Prioritizing Diversity, Equity, and Inclusion (DEI)
DEI is no longer a mere buzzword; it’s a necessity. Nonprofit leaders are increasingly prioritizing diversity within their teams and boards, ensuring equitable access to services, and advocating for systemic change. Organizations that champion DEI not only improve their internal culture but also strengthen their community relationships and credibility.
3. Adopting Agile Approaches
Agility is crucial in the nonprofit sector, especially when responding to unforeseen challenges or emergencies. Agile methodologies enable organizations to adapt quickly, experiment with new ideas, and drive continuous improvement. Nonprofit CEOs should foster a culture of innovation, encouraging teams to pilot projects, learn from failures, and repeat successful initiatives.
4. Enhancing Digital Engagement
With the rise of digital communication, nonprofits must meet their audiences where they are—online. Social media, email campaigns, and virtual events are powerful tools for engaging stakeholders, spreading awareness, and driving fundraising efforts. A robust digital strategy helps nonprofits build a strong online presence and reach wider audiences.
5. Strengthening Leadership and Governance
Effective leadership and governance are cornerstones of a successful nonprofit. CEOs and board members need to invest in leadership development, succession planning, and board diversification to ensure long-term sustainability. Building a resilient organization starts with having the right people at the helm.
Navigating the changing nonprofit landscape requires visionary leadership, adaptability, and a deep understanding of emerging trends. By leveraging data, prioritizing DEI, adopting agile practices, enhancing digital engagement, and strengthening leadership, nonprofit CEOs can drive their organizations toward greater impact and sustainability.
To support your efforts in building a safe, compliant, and productive workplace, we invite you to sign up for UST’s Free 60-Day HR Trial. The UST HR Workplace is a cloud-based platform offering HR tools, templates, and trainings specifically designed for nonprofit employers. Discover how our resources can empower your organization to thrive in today’s dynamic environment.
Stay informed, stay agile, and lead your nonprofit to success!
Question: How do we know when an employee is ready for a leadership role?
Answer: It’s good you’re thinking about this. Promotions into leadership too often come with little discussion about how the leadership role will be different from the current role or whether the employee has the interest or skill set to be an effective leader.
Fortunately, there are indicators that someone is likely ready for a leadership role. These include (among other traits) their ability to communicate effectively, inspire and motivate others, resolve conflicts while minimizing drama, adapt to change, and take accountability for the work of their team.
If there’s an employee you’d like to promote, but they haven’t expressed an interest in a leadership role, schedule a meeting with them to talk about the idea. Share why you feel they are ready for the role and what it means to be a leader within your organization. Ask about their career goals and how they would like to advance within the organization. Let the employee know how you can support them with these goals, whether or not they move into a leadership track.
If the employee is interested in leadership, provide them a clear picture of the responsibilities and the training and guidance they’ll receive as they move into the new role. Most employees who are new to leadership will need extra support as they transition into a position of greater responsibility.
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Hiring for a nonprofit organization comes with its own set of challenges. With smaller budgets, limited resources, and a competitive market, nonprofits need to think creatively to attract top-tier talent. It’s not just about finding the right strategies—it’s about optimizing the recruiting process to connect with candidates who align with your mission and values. From leveraging digital tools to tapping into mission-driven networks, here are some unconventional hiring strategies, coupled with search optimization tactics, that nonprofits can use to build a passionate and diverse workforce.
1) Leverage Social Media Platforms
Social media can do more than just promote your programs. It can be a powerful tool for connecting with mission-aligned individuals when recruiting. Platforms like LinkedIn, Facebook, and even Instagram can help share your organization’s story, showcase its impact, and promote job openings. Posting about your organization’s culture and mission or creating employee spotlights to share on social media will engage potential candidates. This approach not only attracts talent but also creates a sense of community and interest around your organization.
2) Recruit on Nonprofit Job Platforms and Forums
Traditional job search platforms have their place, but for hiring in the nonprofit sector, explore specialized platforms such as Idealist, Work for Good, or Bridgespan. Additionally, LinkedIn offers nonprofit and volunteer-focused groups to reach professionals seeking purpose-driven work. These job boards, forums, and networks cater specifically to a talent pool that is already aligned to the mission of nonprofit organizations.
3) Host Mission-Driven Networking Events
Networking events specifically designed for those interested in nonprofit work are an excellent way to meet potential candidates in a more personal setting. These events are good for meeting potential volunteers or employees. Networking events can be something more than the typical “Meet and Greet” format. Interactive workshops and panel discussions will give interested candidates the opportunity to hear from nonprofit leaders about the everyday running of and involvement in their organization. A volunteer recruitment fair is a good way to attract volunteers and identify potential hires informally. Networking events help create an environment where candidates can engage with the organization’s mission, allowing nonprofits to connect with individuals who share their values.
4) Partner with Local Colleges and Universities
Universities and colleges often have untapped potential for recruitment. While using college job boards is one common strategy, take it a step further by creating direct partnerships with academic departments or student organizations. Connect with student groups focused on social causes, public administration, or environmental studies to share internship and job opportunities. Offer guest lectures or workshops in relevant classes, where your nonprofit can be presented as an ideal employer for socially-conscious graduates. These partnerships help position your nonprofit as a destination for students who want to launch their careers in a meaningful way.
5) Focus on Culture and Employee Value Proposition
Working at a nonprofit offers a unique organizational culture that attracts many job candidates due to the positive impact the organization makes. To draw top talent, highlight the benefits of being part of a mission-driven organization. Your recruitment materials should showcase what makes your nonprofit a rewarding place to work. Emphasize flexible work arrangements, opportunities for professional growth, and the chance to make a tangible impact. You can also incorporate testimonials from current employees about their love for working at your nonprofit, as these can be highly motivating for potential applicants. Clearly define your Employee Value Proposition (EVP) in job postings and on your website. In today’s world, where people increasingly seek meaningful work, a compelling culture can be a significant recruitment advantage.
6) Hiring For a More Diverse Workforce
A diverse workforce introduces fresh perspectives and creativity while fostering a deeper understanding of various communities. This enriches an organization and enhances its capacity to achieve its mission effectively. There are many job boards and platforms dedicated to connecting diverse candidates with employers who value inclusion. These platforms will broaden your recruitment reach to connect with candidates from diverse backgrounds. Some of those boards are DiversityJobs, Workforce Diversity Network, Jopwell, and PowerToFly. To attract diverse candidates, use engaging hashtags like #DiversityHiring or #WomenInNonprofits when posting about open positions on social media. For college recruiting, consider partnering with Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), and Tribal Colleges to broaden your reach and connect with talented students.
Recruiting for nonprofits demands creativity and a readiness to explore non-traditional avenues. By harnessing the power of social media, connecting with universities and diversity-focused job boards, and cultivating community relationships, nonprofits can draw in diverse, motivated talent. This approach builds a team that genuinely represents and advocates for the communities served.
Hiring the right candidates is just the beginning of the employment journey. UST HR Workplace is here to make it easier for nonprofits to get the support they need. Sign up now for UST’s Free 60-day HR Trial and enjoy access to our live HR certified consultants, over 300 on-demand training courses and an extensive compliance library with UST membership. Enjoy the beneficial insights and various resources that help empower you with the right tools and training to take better care of your team once your candidate says yes to their offer letter.
Sources:
The Power Of Social Media In Recruiting (forbes.com)
12 Innovative Recruiting Strategies That Savvy Companies are Using (linkedin.com)
14 Recruitment Strategies to Attract Best Talent in 2024
Employee Value Proposition (EVP): All You Need to Know in 2024 (aihr.com)
Question: It seems like we’ve had a lot of candidates ghosting us recently. Is there anything we can do to prevent this?
Answer: Nothing you do will prevent ghosting altogether, but there are steps you can take to keep candidates engaged and discourage them from just disappearing on you:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
Ever since the Great Resignation reared its head in 2021, nonprofits have been struggling to recruit and retain staff. The nonprofit sector thrives on passion and purpose. Employees dedicate their time and energy to causes they care about and are often driven by a desire to make a difference. However, passion alone isn’t enough to sustain long-term commitment or satisfaction in their roles. Just like their counterparts in the for-profit world, opportunities for growth and development help nonprofit employees stay engaged, feel valued, and continue to contribute at a high level.
On the surface, employee development is straightforward: Train employees to improve their existing skillset and build new skills on top of that. But there are benefits beyond training. Employee development is also a way to maintain the success of organizations for the future. As organizations continue to grow, or as Baby Boomers retire and leave, existing employees are the key to keeping organizations stable and engaged in their communities.
There are multiple benefits that can result from creating an organization that prioritizes employee development.
The 2024 Workplace Learning Report from LinkedIn Learning notes that providing learning and development opportunities is the number one retention strategy executives planned to implement in 2024, with studies showing that companies with a learning culture have a 57% higher retention rate than companies that don’t. There are several ways to develop talent among your existing pool of employees. Some of the most impactful forms of employee development are free or cost little to provide – which is a plus for nonprofits which oftentimes have limited funds for training and development.
There are many ways to add to and advance the skillsets of employees—thereby having a long-lasting impact on your workforce and the long term success of your nonprofit.
Whether it’s through formal training programs, mentorship or leadership development, nonprofits can create a culture that prioritizes the growth and development of their staff. The long term benefits of encouraging development will ultimately benefit the organization through employee satisfaction, retention, and organizational success. Investing in people is investing in the future of the nonprofit itself.
UST understands that employee retention is critical in helping nonprofits achieve their missions. Leveraging the right strategies and building skill sets helps nonprofits retain engaged employees which leads to a more successful mission. For more ideas on ways to up-skill your valued employees, take advantage of UST’s Free 60-day HR Trial. UST HR Workplace is a dynamic cloud-based platform offering HR tools, templates, and trainings.
Sources:
How Professional Development Can Boost Employee Engagement – Wharton Online (upenn.edu)
https://learning.linkedin.com/resources/workplace-learning-report
https://ditasolutions.com/articles/the-role-of-training-in-employee-engagement-and-retention
Question: We would like to add a working interview to our selection process. Is this permitted and are there other options to help us finalize our selection?
Answer: Yes, you can have a working interview as part of your selection process, but there’s a big caveat. If you have the candidate do “real work” that is useful to your business, you’ll need to hire them as a temporary employee, have them complete new hire paperwork, pay them at least the minimum wage, and then jump through any termination hoops if you don’t hire them. You can’t lawfully classify them as an independent contractor for this purpose. Here are a few more things keep in mind:
If you’d prefer to avoid the hassle of hiring candidates as temporary employees, there are alternatives that can yield similar results. Here are two we recommend:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
It’s no secret that many employees are thinking about changing jobs these days. In fact, research from Microsoft and LinkedIn says that almost half of American workers are considering a switch to a new job in 2024. That’s even higher than the numbers seen during the “Great Resignation” during 2022. While budget limitations are a reality for nonprofit organizations, supporting mental wellness efforts can help create a supportive environment where a strong sense of belonging helps outweigh a smaller paycheck. HR professionals working at nonprofits can help build higher employee satisfaction and boost retention by implementing four strategies designed around mental health.
What does that look like in real-world terms? The answers are reducing stress, fostering meaningful connections within your organization and the greater community, encouraging physical activity and providing opportunities for employees to grow and shine on the job.
Here are four ways HR professionals can achieve these goals within a nonprofit organization:
1. Give employees an outlet for their stress through an Employee Assistance Plan (EAP): EAPs give your employees an opportunity to proactively access mental and emotional support before major issues develop.
IMPORTANT: HR professionals need to do their homework when picking an EAP. Things to look at include cost per visit, how many visits will be covered and the ROI for the organization.
2. Help employees build meaningful connections through Employee Resource Groups (ERGs): ERGs allow employees with shared identities or backgrounds to connect and create a stronger feeling of belonging.
3. Encourage physical activity to help strengthen mental health: Exercise has long been associated with higher levels of mental health. It provides stress relief and enhances overall well-being.
4. Give employees opportunities to shine on the job and help them build new skills to boost their career: Research shows that employees who rate themselves as “thriving” in their job because their efforts are recognized, and they have opportunities to build new skills are three times less likely to switch jobs.
For most nonprofits, focusing on financial compensation just isn’t a winning strategy when it comes to employee retention. Incorporating higher levels of mental health benefits which build a sense of belonging and employee engagement, on the other hand, can be a solid strategy to help you retain the key contributors to your organization.
UST understands the pressure nonprofits face when it comes to employee retention. For more ideas on ways to build a benefit package that includes solid mental and emotional rewards for your valued employees, take advantage of UST’s Free 60-day HR Trial. UST HR Workplace is a dynamic cloud-based platform offering HR tools, templates, and trainings. It empowers nonprofit employers to cultivate a safe, compliant, and productive workplace environment.
RESOURCES:
https://www.gallup.com/workplace/358082/struggling-suffering-employees-twice-likely-leave.aspx
In the nonprofit sector, high turnover rates can disrupt organizational stability, morale, and mission effectiveness. A robust and supportive work culture is crucial for retaining dedicated staff and ensuring long-term success. According to Forbes, “The government reported a record number of Americans, 70 million, left their jobs in 2021, including 47.8 million departures counted as voluntary. This “Great Resignation” has left employers scrambling to fill vacancies, a problem that could get worse before it gets better.” This blog post explores the importance of cultivating a positive nonprofit work culture and offers actionable strategies to combat turnover.
Understanding the Challenge
Unlike the for-profit world, where financial incentives might be more prominent, nonprofit employees are often driven by passion and commitment to a cause. While this dedication is invaluable, it doesn’t shield nonprofits from the challenges of employee retention. High turnover can stem from burnout, lack of recognition, limited career growth opportunities, and inadequate support systems.
The Importance of a Supportive Work Culture
A supportive work culture in nonprofits fosters an environment where employees feel valued, heard, and empowered. It can lead to higher job satisfaction, better team collaboration, and enhanced productivity. Most importantly, it helps retain top talent, thereby reducing turnover rates and ensuring the continuity of the organization’s mission.
Benefits of a Positive Nonprofit Work Culture
Building a supportive work culture in nonprofits is not just a nice-to-have, it’s a necessity for retaining passionate and dedicated staff. By prioritizing employee well-being, fostering open communication, recognizing contributions, investing in development, encouraging team building, leading by example, and ensuring fair compensation, nonprofit leaders and HR managers can create an environment where employees thrive.
Ready to take the first step towards building a more supportive work culture in your nonprofit? Start by assessing your current practices and identifying areas for improvement. Remember, a little effort goes a long way in making your organization a place where employees are happy, engaged, and committed to making a difference.
Click here to read more blogs on how to support your team’s mental health.
Source
Question: What can we do to reduce turnover and retain employees?
Answer: High turnover can quickly become costly. We recommend the following practices to increase retention:
This Q&A does not constitute legal advice and does not address state or local law.
This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
