Staffing a non-profit organization
Staffing is one of the most important managerial functions. This function is undertaken by management teams of both profit and non-profit making organizations. Staffing refers to the process of attracting, hiring and maintaining employees who can contribute towards the attainment of organizational goals.
In their operation, non-profit organizations work with different parties such as government agencies. However, non-profit organizations are different from profit-making organizations in a number of ways. For example, non-profit organizations are usually understaffed. Therefore, it is difficult to clearly define the role of the employees. This means that one can be assigned a variety of task. Non-profit organizations are also very volatile.
When hiring employees to work within my non-profit organization, there are a number of skills that I would evaluate whether the job applicants possess. These skills mainly relate to transferable skills. Transferrable skills refer to skills possessed by an individual and can easily be transferred from one environment to another.
Entrepreneurial skills
Considering the dynamic nature of the environment within which non-profit organizations operate, the candidates to be considered for hiring should possess diverse entrepreneurial skills. Some of the entrepreneurial skills which they should possess include creativity and flexibility.
Creativity will enable the candidates selected to be effective in solving problems that may arise. On the other hand, flexibility will ensure that the candidates are able to respond timely to changes that occur.
Self starter
Individuals seeking to work for non-profit organizations should have the ability to perform a variety tasks.Therefore; the candidates should be able to deal with pressure emanating from the volatile working environment. In order to achieve this, the candidate should be self-driven. Additionally, the candidates should be able to meet and exceed the set goals.
Collaborative
The concept of teamwork has increasingly become important in the success of non-profit organization. The candidate to be considered should be a team player. This means that he or she should be able to relate well with other parties. The resultant effect will be the development of a good working environment.
Resourceful
The candidate should be able to perform different tasks, such as basic accounting. The candidate must possess marketing skills in order to help the organization source for funds from third parties.
Positive attitude
Considering the volatile nature of non-profit organizations, the candidates should be able to maintain a positive attitude towards the job.
The growth and development of not for profit organizations in Australia today
There are numerous non-profit organizations operating in different economic sectors in Australia. The 1st non-profit organizations in Australia were established between 1810 and 1819. With time the number of non-profit organizations established increased. The growth of non-profit organizations in Australia was stimulated by the commitment of various groups and individuals. Their core objective was to provide various services to Australians. These organizations differ from government institutions in that their operations are not under the authority of the government.
Australian Bureau of Statistics asserts that since then, Australia has proven to be a fertile ground for the establishment of non-profit organizations. Over the past two centuries, Australia has experienced significant growth in the number of non-profit organizations. Non-profit organizations are categorized into two main groups which include member-serving and public-serving non-profit organizations.
The public-serving non-profit organizations are mainly established in areas which deal with community services, research, education and health services. On the other hand, member-serving organizations are mainly established in areas such as recreation, leisure and sports. Currently, there are approximately 700,000 non-profit organizations in Australia. Four hundred thousand of these organizations are small and unincorporated.
On the other hand, 59,000 of them are economically significant. This means that they employ a large number of employees who are liable to tax concessions. Approximately 850,000 citizens are employed by non-profit organizations in Australia. This represents 8% of the total employment in the country.
Since their establishment, non-profit organizations have played a critical role in Australia’s economic growth. This has arisen from the fact that the sector has enriched Australian communities through various aspects such as social, economic, cultural and environmental. The resultant effect is that these organizations have provided support to vulnerable communities in the country. For example, more than 4.6 million individuals volunteer to work with various non-profit organizations in the country annually.
According to the Australian government, the number of individuals volunteering to work within these organizations is increasing. This means that there is a high probability of these organizations experiencing significant growth during the 21st century. This arises from the fact that these organizations will enhance their human capital hence their ability to respond to changes in the market. It is estimated that non-profit organizations pay approximately $14.6 billion in wages.
This means that they are effective in stimulating the economy. With regard to their contribution to the country’s Gross Domestic Product (GDP), non-profit organizations contribute approximately $43 billion to the country’s GDP annually. The increment in their contribution to the country’s GDP illustrates the fact that non-profit organizations have undergone significant growth and development over the years. This trend is expected to continue into the future.
Challenges facing non-profit organizations in Australia
The unique characteristics of non-profit organizations pose special challenges to these organizations compared to profit-making organizations. For example, the operations of these organisations are not aimed at making a profit. As a result, non-profit organizations have to seek for funds necessary for their operation externally such as from grantor and sponsors. In order to receive the funds, the financiers have formulated strict conditions that these organizations must adhere to.
For example, if a non-profit organization was seeking funds to undertake a certain project, the project must be completed within the specified timeframe. This means that the funders may not take into consideration the prevailing economic situation. In some instances, the fund’s allocated projects may not be enough. The resultant effect is that the organizations experience a financial burden. If it were a profit-making organization, it would have undertaken such a project.
Non-profit organizations also experience high overhead costs in their service delivery which limits their ability to deliver the end result. When extending the funds, the financiers may not take into consideration the overhead cost. In the event of these organizations failing to accomplish the projects, the financiers may consider them as being dishonest. This means that their ability to access funds in the future is limited.
Additionally, finding a financier is relatively hard. This arises from the fact that both governmental and non-governmental organizations do not like to be associated with these firms.
In their operation, non-profit organizations face a problem arising from an increment in the degree of complexity of their clients’ needs. For example, some of their clients require long term funding. However, most non-profit organizations are not able to achieve this due to their financial instability.
These organizations also experience a challenge in their accounting and reporting procedures. For example, their reporting requirements vary depending on the funding organization. This increases workload within the organizations. In Australia, the tax structure adopted is narrow, thus limiting non-profit organizations ability to receive tax-deductible donations.
Non-profit organizations also work in a very difficult environment. This is mainly so public-serving non-profit organizations such as those which deal with social services, for example, serving people with disabilities. These are the challenging environment in that the employee’s level of motivation is relatively low. In profit-making organizations, the employees’ motivation is relatively high. This arises from the fact that their operations are profit-oriented.
However, this is not the case in non-profit organizations. The resultant effect is that non-profit organizations experience a challenge in their effort to hire and maintain a reliable and motivated workforce. Additionally, keeping the workforce motivated is also challenging, considering the numerous externalities associated with non-profit organizations. Despite the numerous challenges that these organizations experience, they are a core component of a country’s economy. This arises from the fact that they stimulate economic growth in addition to contributing to other socio-cultural environments.
Reference List
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Australian Government. “Section 2: The non-profit sector in Australia.” Department of Broadband, Communication and the Digital Economy. Web.
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