Is HR Technology Relevant for Charities and Non-Profits? – HR Technologist

It is essential for non-profits and charities to realize their vision while maintaining internal and on-ground efficiency. HR tech can play a significant role in helping them achieve this level of efficiency. In an exclusive discussion with Jonathan Richards, Founder & CEO of Breathe, HR technology developer for small and medium-sized enterprises (SMEs), we discussed and learned:

• Why charities also need an HR tech solution
• Three obvious benefits of digitizing HR admin tasks
• The enduring and imminent case for HR tech adoption

Today, organizations across segments and verticals are embracing HR technology like never before. At its core, it helps to optimize processes, automate iterative HR admin tasks, gauge employee sentiment, and foster an engaging and meaningful work culture.

However, research suggests that charities and non-profit organizations might not be up to speed when it comes to modernizing HR admin tasks. For instance, Charity Digital’s Annual White Paper report indicated that 40% of the charities surveyed believed their trustee’s IT capabilities to be “below par” – up from last year’s 29%. Further, today charity trustees are more vocal about this gap, with 33% admitting that their IT competence is below average (against 20% last year). 

Clearly, there is a critical need for non-profits and charities to look at tech platforms for HR admin tasks and partner with cutting-edge solution providers to address this gap. We spoke with Jonathan Richards, Founder, and CEO of Breathe, to understand how HR tech could play a role in transforming how charities operate and pave the way for operational efficiency.

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Opportunities and Risks: Why Charities and Small Businesses Need HR Tech Right Away

Right on top of any daily HR admin task schedule is the collection and management of data. Typically, charities have reams of incoming data, spread across donors, volunteers, target groups, and several other stakeholders. A cutting-edge, integrated data management system could transform, assess, and evaluate data, helping these teams gain new insights and even maintain compliance.

Consider what Richards has to say in light of compliance by small businesses and charities.

“In May 2019, GDPR rules were extended, making it easier for employees and volunteers to make Subject Access Requests. This is where someone requests access to the information about them held by their employer. If an organization fails to respond to a SAR within 30 days of a request, they could be fined by the Information Commissioner’s Office,” said Richards.

“If information about employees and volunteers is held in spreadsheets, different software systems, and paper files, it’s far harder to collate than if it was stored centrally in one single HR application. People can also request that an organization deletes information held about them by an organization. This is called the ‘right to be forgotten’. Again, this is easier to do if personal data is located in one system,” he explained.

Another key impact area of HR tech is that charities can now automate repetitive HR admin tasks, freeing up resources for more valuable activities. And this would also help in optimizing in-house expense management – which is critical to the survival and success of a charity.

Now that we’ve established why even a non-profit company needs to digitize HR admin tasks, let’s discuss three key benefits/impacts of HR tech adoption.

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Leaner, Sharper, and Secure: 3 Benefits of Implementing HR Tech

The benefits of HR tech adoption are self-evident. As charities endeavor to offer genuine aid and ensure transparency in operations, any tool/platform endorsing good governance is a must-have. This could be the differentiator between a charity that’s growth-ready and one that stutters to an inadvertent close.

HR tech is among the cogs in this process of standardization. Here are three clear benefits:

1. You can reduce time spent on HR admin tasks

The writing is on the wall: as you automate daily activities, your HR team can focus on the things that matter the most.

“Free HR people from this and they can focus on other areas such as strategic vision, business development, and fostering a positive company culture, which brings out the best in a charity’s employees and volunteers. This is essential for retaining people and effective recruitment,” said Richards.  

He also added that “going digital means HR people can dedicate their time to developing their colleagues and helping them grow.”

3. You can ensure data is secure, compliant, and impenetrable

Legacy systems of data management and multiple spreadsheets will always expose you to data theft. This is why charities must stay one step ahead of a possible breach, investing in a centralized data repository.

Richards opined, “Look for a system for which every employee within an organization has their own unique log-in. The ability to set different access and user permissions is just as vital. This ensures that people can only see what they are meant to see, and that HR administrators have complete control over which documents and information are visible to people.”

4. You can manage costs better by moving to the cloud

If you’re still considering staying on-premise with your IT infrastructure, you will have to:

1. Incur constant maintenance and support costs
2. Address the ever-increasing possibility of a data breach

Instead, by moving to an on-cloud HR data solution, you can ensure data safety as well as cost-effectiveness.

Richards has a useful tip to share: “Look for systems that have been ISO 27001 certified. This demonstrates that a software company takes security very seriously and their applications have been independently accredited.”

So, how can charities interested in investing in technology overhaul HR admin task management? How do you get started on your HR tech journey? Here are other insights from our conversation with Richards.

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Reinforcing the Case for HR Tech Adoption

Interestingly, it isn’t that charities are tech-averse. In fact, several non-profits use state-of-the-art solutions in areas like productivity, finance, and customer relationship management (CRM). However, HR tech remains untapped.

A new Charity Digital survey revealed that 95% of charities have never used a tech solution for HR admin tasks. Yet, the numbers for other functions were very different (62% – productivity software, 40% – finance software, 26% – CRM software).

“This is a number that needs significant reducing. To encourage more use of HR technology throughout charities and SMEs, it is important for them to understand the positive impact it can have and raise awareness of these benefits,” said Richards.

A cloud-based tech solution could transform HR productivity levels and reduce manual intervention by up to 80%.

Richards outlined how Breathe was eager to help charities find an HR solution that works for them. “At Breathe, we offer 50% off our technology to any charity. This is a way to encourage the organization to sign up to our software as we know that most charities are stretched for budget.”

For charities, it’s important to reach their targets but also stay true to the mission and values that birthed them. At the same time, it is important to apply the fundamentals of any operational business enterprise to ensure their viability in the long term.

If you’re looking to invest, there are several companies like Breathe that are eager to help you on your journey. Companies like Zoho are committed to helping charities figure out the most expense-friendly HR tech solution available.

In the end, it all comes down to this. Everyday issues and the absence of essential operational efficiency should not shift your focus from the vision of your charity. By offloading HR admin tasks to HR technology, you can ensure that you can devote more time to your vision and accomplish it. 

Are you using an HR tech solution at your non-profit? Share your insights with us on Facebook, LinkedIn, or Twitter. We are always listening!