Both non-profit and for-profit organizations face different challenges related to finances, legal compliance, workforce, and leadership in the ever-changing world of human resource. Nonetheless, given the structure and nature of non-profit organizations, they tend to face more distinctive human resource (HR) challenges that pose a threat to the fulfillment of an organization’s mission and vision if not well managed (Wilton, 2016). This makes human resource management (HRM) on non-profit organizations to differ tremendously from organizations that make a profit (Taylor, Gardiner, Gott, & Robinson, 2018). In essence, non-profit human resource departments highly rely on fluctuating budgets that are based on government funding, donations, and grants. This, in turn, leads to significant limitations and restrictions on how the human resource carries out its duties including hiring, recruitment, retention, and training of employees. Therefore, the human resource department in any non-profit organization should strive to direct their efforts on basic courses that fulfill the organization's goals (Oxberry, McGloughlin, & Crowther, 2016). As a non-profit organization, Kirkwood Hospice at Huddersfield faces a variety of strategic human resource challenges that arise from limited finances, the use of volunteers, income from enterprise activities, and talent management and retention strategies.
Given that non-profit firms mostly sustain themselves on government funding, donations, and grants, the human resource department often works with a tighter budget as compared to profit based organizations. These constraints affect the ability of the human resource department to compensate workers with competitive salaries (Renz, 2016). Low salaries negatively impact the organization as the HR faces recruitment and retention challenges given that talented employees who can ensure the organization’s success are always looking for greener pastures. Kirkwood Hospice Organization is no different from such a challenge.
Although this organization enjoys a recommendable and outstanding reputation due to its committed involvement with the Kirklees community, it may face a drastic reduction of the NHS’ financial support which presently contributes up to 20% of the organization’s budget (Emsell & Davies, 2018). This is because, by 2020, the hospice sector has forecasted a £20 billion funding disparity in the United Kingdom's NHS. This funding gap will cause financial shortcomings and instability especially if the organization does not access enough donations and grants to run its activities. Luckily, Kirkwood Hospice can also access a good amount of money from its charity shops and legacies which will reduce the pressures of budgeting.
Therefore, to solve the financial problems, it is recommended non-profit organization find other means of motivating their employees other than through compensations. Fortunately, salaries are not always the most significant factors that motivate an employee to agree to a job offer or remain as a committed employee with an organization (Maier, Meyer, & Steinbereithner, 2016). When employees are compensated with high salaries, they eventually become familiar with the salaries and became dissatisfied once again if they are not intrinsically motivated. As such, even with the expected budget cut, Kirkwood can devise alternative ways of appealing to its employees. According to research, employee motivation spurs risk-taking and commitment in any given organization. This is because human beings, under the right environmental conditions, not only accepts work but also actively seeks for more duties. One of the ways to help Kirkwood Hospice cut its financial budget is urging employees to accept a lower salary for a position that provides exceptional training as well as development opportunities. The organization may also emphasis on work-life balance by offering more flexible work schedules or telecommuting alternatives.
Use of Volunteers
Although the ability to involve volunteers in the performance of different activities is an advantage that non-profit firms hold over profit based organizations, their use also raises a unique set of challenges for the human resource department. These challenges arise from the fact that firms must make sure that volunteers are not compensated in any way and most importantly, do not expect to receive it. Failure to that, volunteers may be legally perceived as employees and therefore entitled to compensation rights that attend their designation.
Secondly, organizations must manage the duties and responsibilities performed by their volunteers just as they would with employed workers. Assigning of duties poses a challenge because volunteers who are poor performers or are not committed to advance the firm’s vision and mission can harm the morale of the workforce thus creating more challenges than they solve. For instance, when volunteers abandon their duties because they are not happy with the management, these roles are always assigned to other employees who may eventually feel overburdened.
Kirkwood heavily relies on the goodwill of their volunteers without which the company cannot exist. This company needs to effectively manage over 800 volunteers who dedicate approximately 120,000 hours every year (Emsell, & Davies, 2018). Thus, To ensure that no harm comes to the Kirkwood Hospice organization or its patients, the firm should establish screening processes that are designed to recruit and train volunteers who have a genuine desire and the necessary skills to make a positive impact towards the success of the organization. More so, the organization should implement a volunteer database.
Other aspects of performance management t
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