The Value of Position Control for Nonprofit Organizations
Nonprofit organizations currently employ over 11.4 million workers in the United States, making up at least 11% of the country’s modern workforce. These numbers continue to rise as nonprofits continue to recruit and retain more employees. According to the recent DATIS 2018 State of Workforce Management survey report, 89% of nonprofit executives revealed that it was likely that their organization will increase their headcount in 2018. However, as nonprofit organizations continue to grow and expand, they start to experience new workforce challenges that makes it increasingly difficult for executives to manage their employees.
Fortunately for nonprofit executives, there are tools and platforms available that are built to simplify the workforce management experience, relieving pressure from HR and other key departments. One tool, in particular, was built specifically with the needs and challenges of nonprofit organizations in mind, and empowers executives to better control their costs, maximize their budgets, and manage their evolving workforce. This tool is known as Position Control.
What is Position Control?
Position Control is the foundation of modern, sophisticated HR software solutions that allow organizations to budget at the position level, independent of the employee. This approach differs from more generic solutions that are historically employee-based. Position Control gives executives an unparalleled amount of control over their workforce by enabling them to build out positions with specific attributes that employees then inherit when they fill the position. This eliminates the need to manually code an employee each time they assume a new role within the organization.
Position Control empowers executives to assign specific attributes such as salary ranges, job codes, programs, cost centers, funding source, credential requirements, and other labor costing information to each position. As new employees are onboarded, they simply inherit those attributes and begin working. Once the employee has entered the system, HR will then be prompted to collect the necessary paperwork and credentials so nothing slips through the cracks. Basically, Position Control allows nonprofit executives to build out their organization the way they want, and significantly reduces the amount of manual labor and data entry needed to make it happen.
How Can Position Control Help Nonprofits?
Nonprofit organizations are often plagued with strict budgets, limited resources, and high turnover. In fact, the DATIS 2018 State of Workforce Management report found that 42% of nonprofits experience an employee turnover rate of over 20%. Challenges like these make it hard for these organizations to achieve their mission of helping those in need, and can ultimately diminish the impact nonprofits have on their community. A Position Control approach to HR software equips nonprofit executives with the tools they need to overcome these hurdles, improving how their organizations handles budgeting, organizational structure, and compliance.
Position Control gives nonprofit executives the power to view the costs associated with their workforce at an extremely granular level, allowing them to analyze budget performance and control payroll costs without compromising service quality. With the ability to assign specific attributed such as salary range, cost center, and funding source to each position within an organization, Position Control makes financial information extremely easy to track within a workforce. By tracking and understanding these costs, the risk of hiring any unbudgeted employees is significantly decreased.
With Position Control, each new employee must be onboarded through an “approved to fill” position. In other words, new employees can only join the organization once they have been through a Workflow Approval Process and have received the “go ahead” from appropriate authorities. This extra step gives executives another chance to ensure that they have the budget to onboard and pay the potential employee. In addition, executives can see the daily lost revenue for vacant, revenue generating positions within the organization. All of these benefits that come with Position Control help nonprofits budget more effectively.
As previously stated, Position Control allows executives to build, organize, and structure their workforce the way they want. This is possible because today’s sophisticated HR solutions based on Position Control come equipped with actionable, interactive Organizational Charts, which act as a visual representation of an organization’s structure. Executives can determine how many employees they’d like in each department, and attach a unique, specific job description with each position. This way, there are no surprises when new hires are onboarded, as they will be required to match the attributes defined when the position was set up through the Organizational Chart.
Having structure helps nonprofits stay organized and on track to achieve their goals and objectives. Within an Organizational Chart, managers can see the employees that make up their team and take corrective action. Open positions, approval to fill requests, applicants for open positions, and more are all readily available within a click of a bottom thanks to Position Control. Employees can also use the Organizational Chart to view the chain of command within their organization, ensuring that they know who to report to at all times. When their manager leaves the organization or changes roles, the chart will automatically update, and the workflow will move on to the next appropriate leader.
Regulatory compliance is required among all organizations, but is especially a requirement for Health and Human Services nonprofits, where roughly 75% of employees require licenses or some form of credential. Noncompliance with laws and regulations results in unnecessary fines and penalties, which can have significant financial ramifications for nonprofit organizations.
Tracking credentials is an essential part of the compliance process. Employees with expired credentials could put their organization at risk of noncompliance with various federal and state regulations. Through Position Control, executives can tie credential requirements to the position, ensuring that new employees have the proper licenses, certifications, and registrations needed to assume the position they applied for. These credentials are then automatically collected through a New Hire Onboarding Wizard. With Position Control, managers and employees can receive automatic notifications when a person’s credentials are about to expire. All of this helps ensure compliance for nonprofit organizations moving forward.
Looking for more information? Take a look at the DATIS Position Control Packet, where you can find videos, infographics, datasheets, and blogs regarding Position Control.