HR 101: Small charity challenges

The current economic climate is amplifying the issues that small charities face. From limited funding to lack of staff, small charity teams are feeling the pressure.

 

The pandemic has also fuelled the situation by placing extra demand on charities and the services they provide.

 

In our HR 101 series, we’ve been exploring the role of HR and the positive impact it can have on charities. From recruitment to staff training and development, this article will look at how HR can benefit small charities.

 

 

What does HR look like in small charities?

 

While every charity would benefit from having an HR team, many small charities have limited budgets. They can’t afford big HR departments with lots of staff with different specialisms. Instead, small charities are often reliant on a more junior HR employee or even a CEO or founder carrying out HR.

 

For charities that can’t afford a more senior HR staff member, it could be worth exploring mentoring opportunities. ICS Learn says that finding an HR mentor can help to enhance skills and build confidence and knowledge in this area of work.

 

Below, we look at some of the biggest challenges facing small charities and how HR can be used to tackle these.

 

 

Limited budget for recruitment and training

 

The Small Charities Data website says that “generating income and achieving financial sustainability” is a pressing issue for small charities. For example, lack of budget can stop small charities from training and developing their staff.

 

The Small Charity Leaders Insight Report says that over six in 10 HR leaders feel that it’s challenging to develop and maintain the skills of staff and volunteers.

 

HR staff should try to identify cost-effective training opportunities and ways to develop employees. They may want to consider what organisations such as the Cranfield Trust, the FSI and the NCVO offer small charities. There is also cost-effective online training available for charities.

 

Limited funding can also make it more difficult to recruit staff and volunteers as there is less money to spend on advertising. A specialist HR consultancy that helps with recruitment may be able to give advice.

 

Lack of funding means that small charities can’t offer the salaries that bigger organisations can. To keep staff engaged and satisfied, HR staff need to think of other benefits that will motivate staff. The Cranfield Trust says that charity leaders should consider offering initiatives such as flexible working arrangements.

 

 

Small teams at risk of burnout

 

Having a small team means it’s difficult to share the workload. This can lead to stress and burnout. Research from ACEVO and Mental Health First Aid England shows that the pandemic worsened existing mental health issues for people working in the charity sector. Small charities in particular have faced increasing demand for services, leaving staff with high workloads and at risk of mental health issues.

 

The Cranfield Trust says: “It’s important charities are not overlooking the mental health of their staff. It’s more straightforward in for-profit businesses as they can focus on compensation and pay incentives, career development, training opportunities, invest in employee assistance programmes and more.

 

“However, non-profits may struggle to match this as they’ll need to provide these programmes at a cost that’s sustainable over an extended period of time. It can help to identify the areas within the organisation where they can focus their limited budgets for the most return.”  

 

One of the key roles of HR is to support the health and wellbeing of employees.

 

 

Lack of time to develop organisational policies

 

With small teams and limited resources, small charities can struggle to find the time to develop and write policies. HR staff, or a specialist HR consultancy, can support charities with this.

 

 

Limited brand awareness makes it harder to recruit trustees

 

Small charities don’t often have the same brand profile and awareness that larger organisations have. This means that recruiting trustees with the right skillset can be challenging, especially as there is no financial benefit for these roles.

 

Charity Jobs says less than one in ten trustee vacancies are advertised. This means charities are relying on their existing networks and word-of-mouth to recruit trustees.

 

The Cranfield Trust says: “This form of recruitment can prove damaging to charity organisations. By only hiring inside their network, they’re limiting the effectiveness, leadership and decision making of the charity. Which then causes a lack of representation for their communities and service users.”

 

An HR staff member, or a specialist HR consultancy, can help charities to recruit new trustees. Read more about recruitment in our HR 101 series.

 

 

The impact of Brexit on employment law

 

Leaving the EU has been a challenge for charities as they unravel changes to employment legislation. Having an HR staff member with strong experience and knowledge of can help charities to navigate this.