How Position Management Software Can Streamline Nonprofits' Budgeting & Reporting

Every nonprofit dreams of growing its footprint, expanding its reach, and maximizing its impact on the community it serves. But what do you do when growing your organization introduces workforce challenges that make it difficult to manage your employees?

For many nonprofit organizations growth and expansion end up squeezing the budget, confusing the roles of volunteers and employees, and introducing compliance complications that can threaten your operational status. And that’s why nonprofits in growth mode need to put a plan in place for person and position management. 

Position management is a workforce management strategy that empowers you to control your costs, maximize your budget, and manage your growing workforce. Position management software helps you organize your employee base by function and role and track that information over time – so that you can quickly and easily understand the “big picture” of your workforce strategy. 

Most importantly, position management software helps you improve your performance in key areas like organizational oversight, budget, and compliance in three key ways:

 

#1: Position Management Software Creates Powerful Organization Oversight 

Most nonprofit HR software is employee-based, which means the information about a role is organized within an employee’s record. You can’t look at how your company is organized by role or where your personnel budget is going. And when an employee leaves, that information goes with them, leaving your nonprofit with holes in its workforce planning model. 

Position management software turns this architecture on its head. Instead of organizing job roles by employee, it organizes employees by job role. Which means at any given time, you can look at a snapshot of the positions within your company and then build, organize, and structure your workforce in a way that grows your nonprofit in the direction you want to go.  

Sophisticated nonprofit HR software with position management creates actionable, interactive org charts which act as a visual representation of an organization’s structure. Executives can then determine how many employees they need in each department and attach a unique, specific job description to each position. 

 

#2. Position Management Software Accurately Forecasts Costs for Better Budget Management

One universal challenge facing nonprofit organizations is the need to deliver on an important mission with limited resources. Successful nonprofits manage to turn strict budgets, limited income streams, and high turnover into results – often without having an accurate prediction of what the payroll budget will be from year to year. 

Position management software takes the mystery out of the payroll budget by displaying the costs associated with your workforce at a granular level. It allows you to track where your payroll is going by assigning attributes such as salary range, cost center, and funding source to each position. You can then regularly review where your limited funding is allocated and implement more effective and accurate cost control measures. Even when your employees work multiple jobs across various departments, you can quickly see where their time – and your payroll budget – is going. 

 

#3: Position Management Software Helps You Clearly Lay Out Your Compliance Obligations

Some nonprofit industries are more heavily regulated than others. But because of the business model’s unique tax status, every nonprofit must ensure some level of compliance, especially if you employee certified or otherwise highly qualified individuals such as Licensed Clinical Social Workers (LCSW) or Licensed Professional Counselors (LPC). Noncompliance with laws and regulations results in unnecessary fines and penalties, which further limit your budget and resources, and if left unaddressed, could put your nonprofit status at risk. 

If your compliance status depends on the certification status of your workforce in any way, a manual process simply isn’t effective. It’s extremely time-intensive, and even a simple data processing error can leave your nonprofit open to legal liability. By acting as a central repository of employee certifications and licenses, position management software allows you to proactively monitor the status of your compliance. You can set up automatic notifications when it is time to renew a certification or when an employee’s certification lapses, and your data is updated in real-time so you always know where your employees stand.

 

Grow in the Right Direction With Position Management Software

Whether you’re responding to existing growth or planning for it, it’s time to consider how position management software can help your nonprofit tackle the common challenges of organizational oversight, budget, and compliance. Because the nonprofit organizations that succeed won’t do so by accident – it will be a result of strategic decisions, flexible processes, and the support of advanced technology like nonprofit HR software. 

 

About SyncHR

SyncHR’s patented HCM platform was built with an additional layer of architecture - placing Position Management at its core by storing employee data and position data separately and linking them together. As a result, Nonprofit organizations get a more accurate, real-time view of the people and positions that make up your team. 


Contact us today to learn more about how SyncHR solutions help nonprofits serve more people, more efficiently, and with greater impact.

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