Human Resources essentials for nonprofit success: Bringing people power to organizational goals 

By Jill Smith, SPHR, SHRM-SCP, President of Cornerstone HR & Management Consulting 

People bridge the space between a nonprofit’s strategic plan and achieving results. 

 An atmosphere of trust is the key to helping team members thrive while enabling nonprofits to sustain and grow their life-changing missions. 

Four human resources essentials put nonprofits on a pathway to success: Set expectations, establish core values, create career pathways, and build relationships. The following is a look at how nonprofits can leverage their investments in people to increase retention and find long-term success. 

Employee handbook: Set your expectations 

Typically, new people learn about their organization through the interview process, but putting an employee handbook in their hands sets a welcoming tone, clearly states company culture, and provides legal protection. 

A handbook is a way to set expectations without having to rely on institutional knowledge. Having something in writing that sets standard expectations and what practices you'll tolerate is extremely important. 

When writing or revising a handbook, avoid using online templates, which might include statements that could mistakenly obligate your organization to policies or laws lifted from other states.  

The key topics that every handbook should cover include: 

• Organizational overview: This is the place for your mission statement, vision, core values, and organization history and goals.  

• Employment policies: Explain federal, state, and local employment laws, including equal employment opportunity, anti-harassment, and anti-discrimination policies. A whistleblower protection statement gives employees the confidence to report any inappropriate activity or behavior in the workplace.  

• Benefits: Describe health insurance options, retirement plans, and paid time off. Even if you don’t offer PTO, include workers’ compensation and other government-issued benefits. 

• Work expectations and conduct: List the code of conduct, dress code, work hours and attendance policies, and overtime policy. 

• Performance management: This is the place for disciplinary procedures, the complaint and grievance process, and avenues for reporting concerns and safety issues. Avoid detailing performance reviews or annual pay raises in the handbook because it then obligates your nonprofit. 

• Workplace safety: Include emergency procedures and safety guidelines, especially if the public comes into your workplace or locations. 

• Confidentiality and data protection: How do you protect the confidential information of employees and the people you serve? How do you expect employees to maintain confidentiality? As artificial intelligence becomes a ubiquitous workplace tool, it’s wise to include AI considerations, such as acceptable and unacceptable uses and ethical considerations. 

Core values: Elevating the organization 

Core values define the personality and culture of your company. They are also powerful tools for taking an organization to new levels by creating the baseline for making decisions.  

Values come in four types: 

• Core values: The inherent values at the heart of an organization’s identity rarely change. They should have been apparent for a long time and help differentiate your organization’s unique qualities. 

• Aspirational values: Avoid aspirational values that aren’t inherent to the organization. If achieving a value demands hard work, it’s not a core value. 

• Permission-to-play values: Some things are minimum behavioral standards, such as honesty, integrity, and respect. They’re best used to explain your values instead of being them. 

• Accidental values: Whether from a merger or personalities bringing unwanted behaviors to the workplace, accidental values don’t serve the greater good.  

Once you establish core values, reinforce them in every aspect of operations. Recruit and hire people who reflect your core values or coach those who aren’t quite there yet.  

Career pathways: Creating opportunities in small organizations 

Too often, small organizations lose good people who don’t see any chances for professional growth. However, even small nonprofits can promote employee development through four basic steps: 

• Collaborate: Identify the potential in each employee and foster growth through plans tailored for the individual while also meeting the needs of the business.  

• Conduct career mapping: Find natural progressions in skills and job responsibilities, and provide the training required to reach the next levels. 

• Focus on learning: The words “professional development” imply a doorway to new job titles and bigger paychecks. Replace the term with “learning,” which creates an expectation of professional and personal growth by pursuing knowledge. Identify opportunities by asking employees what they are learning and what they want to learn. Encourage mentoring and job shadowing, or rotate employees among roles.  

Assign development projects that introduce employees to new fields, such as event planning or managing volunteers. Don’t assume that everyone knows about your job openings. Post them internally to give employees the idea that opportunity is available and your organization believes in employee growth.  

• Be intentional: This is especially important with young talent – people who arrive with ideas about what development looks like. Tell them that development is about learning, and after one year, you’ll sit down with them and develop a plan. Ask regularly about the things they want to learn, whether they’re reaching their goals, and if there’s an opportunity or project they want to engage in. Be sure to share success stories at internal meetings and tie growth to awards and recognition, such as bonuses or gift cards for people willing to mentor or teach a colleague a new skill. 

Building trust: Cultivating care 

Trust is a key element in employee engagement and satisfaction. It sets the groundwork for a positive culture. It also enables delegation and impacts effectiveness. 

Research shows that leaders build trust through three elements: 

• Positive relationships: This is the essential element established by leaders who stay in touch with their employees, understand their needs inside and outside the organization, and can balance business needs with employees’ personal needs.  

• Good judgment: Leaders who make thoughtful, careful decisions demonstrate the knowledge and expertise that contributes to trust by showing adaptability and problem-solving.  

• Consistency: These leaders are role models. They show up and follow through on their commitments. 

Replacing annual reviews with one-on-one meetings helps build trust by ditching the checklist and focusing on personal connections. They can be held weekly, quarterly, or monthly – 30-minute chats about the employee’s challenges and successes and what you can provide to further their progress.  

These reviews are a time to acknowledge, recognize, and thank employees for their contributions. You’re using tools you already have but in a different way. 

Conclusion

Nonprofits can achieve long-term success by focusing on key human resources practices: setting clear expectations, reinforcing core values, supporting career growth, and building trust. Moving beyond traditional performance reviews to regular, meaningful conversations helps strengthen employee engagement and retention. Investing in people not only enhances workplace culture but also amplifies mission impact.

For more information, contact Jill Smith at Cornerstone HR & Management Consulting, at jsmith@cornerstonehrm.com or visit their website.