Contrary to numerous forecasts, U.S. employers have consistently expanded their workforce, maintaining a low unemployment rate of 3.7% as of November 2023, according to the Bureau of Labor Statistics. If your non-profit is in need of new staff, the start of the new year is an opportune time to begin recruitment. However, before placing any advertisements, it’s essential to carefully consider a couple of key factors.

1. Your Workforce

First, do you really need to hire? Even if you plan to expand services and introduce new programs, volunteers may be capable of picking up the slack. Or current staffers may be underused on projects that are stagnating or winding down. Carefully review your non-profit’s priorities and consider eliminating programs that aren’t meeting expectations so you can redeploy human resources.

If staffers have been working from home since the start of the COVID-19 pandemic, you may want to call them back to the office before making the decision to hire. It’s possible some staffers will refuse to return to the office full time. In that case, you’ll need to decide whether to keep them working from home and on the payroll or start searching for new employees. Just keep in mind that you could have trouble finding new workers at compensation levels your organization can afford to offer.

2. Your Finances

The second major consideration, of course, is money. Thanks to generous donors and grant-makers, some non-profits have bounced back and even expanded in the post-pandemic period. Others have been forced to pinch pennies just to maintain the existing programs. Wherever your non-profit falls on this spectrum, make sure you can fit new staffers into your budget before hiring.

Remember that when you hire full-time employees, the expense isn’t limited to salaries or hourly wages — you’ll also be paying employment taxes and benefits. In many cases, it’s cheaper to outsource functions, particularly accounting, IT, and human resources work.

Finally, even if you can afford to hire or outsource, the fact remains that non-profits are obligated to be careful financial stewards. Donors, watchdog groups, and the media demand it. So, consider how you’ll make the most of any new staffing budget before you spend it.

Making The Decision

The economy in the U.S. remains relatively strong, making it a good time to hire for many employers. However, this situation could change. Ultimately, the decision to hire depends on your organization’s staffing needs and financial resources. We can help by reviewing your budget and suggesting ways to free up cash. Contact us.