Managing human resources in a charity comes with unique challenges. Unlike corporate businesses, charities often work with a mix of employees, volunteers, part-time staff, and grant-funded roles, making HR management more complex. Ensuring legal compliance, tracking leave, managing payroll, and handling recruitment all require a structured approach—yet many charities lack a dedicated HR team due to budget constraints.
So how can non-profits efficiently manage HR while keeping costs down? The key lies in choosing the right HR processes, software, and strategies to streamline operations without excessive admin work.
This guide explores how charities can manage HR efficiently, whether through in-house HR teams, outsourcing, or cost-effective HR software that automates essential tasks.
Helpful Summary
Overview: This article explains how charities can manage HR, covering compliance, payroll, recruitment, and workforce planning.
Why Trust Us: With years of experience in HR software for non-profits, we understand the challenges charities face and how they can streamline HR operations.
Why It Matters: Poor HR management can lead to compliance risks, inefficiencies, and staff burnout. Having structured HR processes ensures a well-supported team and a legally compliant organisation.
Action Points: Charities should consider cost-effective HR solutions that automate admin tasks, improve compliance tracking, and support workforce management.
Further Research: Discover how Evalu-8 HR, an all-in-one HR system for charities, can help non-profits manage HR with ease.
The Different Approaches to HR in Charities
In-House HR Teams
Larger charities with stable funding and full-time employees often have a dedicated HR team responsible for:
- Hiring and onboarding new staff and volunteers
- Ensuring compliance with employment law and charity sector regulations
- Managing payroll and employee benefits
- Developing HR policies and training programs
While having an in-house HR department ensures a structured HR approach, it can be costly and may not be feasible for smaller charities.
Outsourcing HR Functions
Many charities outsource HR services to HR consultants or payroll providers to handle:
- Employment contracts and policies
- Legal compliance and HR advice
- Payroll and pensions administration
Outsourcing reduces the need for in-house HR expertise, but it can be expensive and may not provide real-time HR support when needed.
HR Software for Charities
For small and medium-sized charities, HR software provides a cost-effective way to manage HR tasks efficiently without a full-time HR team.
HR software can help charities with:
- Automated compliance tracking (right-to-work checks, GDPR, and health & safety)
- Volunteer and employee record management
- Payroll and holiday tracking
- Recruitment and onboarding automation
Which Approach is Best?
For larger charities, an HR team or a mix of HR software and outsourcing may be the best approach. Smaller charities, however, can benefit significantly from HR software that automates key processes without the cost of hiring dedicated HR staff.
Key HR Challenges Charities Face
Compliance and Legal Responsibilities
Charities must follow UK employment laws, including:
- Right-to-work checks for employees and volunteers
- GDPR compliance for storing personal data
- Health & safety policies for workers and volunteers
Failing to meet these requirements can result in legal penalties, making HR compliance tools essential for charities.
Managing Volunteers vs. Paid Staff
Unlike businesses, charities often rely heavily on volunteers, but they still need:
- Onboarding and training
- Role tracking and scheduling
- Safeguarding checks
Traditional HR systems may not support volunteer management, which is why choosing HR software with built-in volunteer tracking is beneficial.
Budget Limitations
Most charities have limited funding, so investing in HR solutions that cut admin time and reduce costs is crucial. Automating processes with HR software can help charities operate efficiently without a full HR team.
High Turnover Rates
Many charity roles are fixed-term or part-time, leading to frequent hiring. HR software can streamline recruitment, onboarding, and contract management, reducing the time spent on admin.
Why HR Software is the Best Solution for Charities
Investing in HR software allows charities to manage HR efficiently while reducing admin workload. Rather than relying on manual spreadsheets or expensive outsourced services, HR software can automate essential HR tasks, including:
- Recruitment & onboarding – Automating new hire paperwork and compliance checks
- Leave & absence tracking – Managing annual leave and sick days in one system
- Volunteer management – Keeping track of schedules, training, and role assignments
- Payroll & compliance monitoring – Ensuring charities meet employment laws
Why Evalu-8 HR is the Best Choice for Charities
Unlike generic HR software, Evalu-8 HR is designed specifically for UK charities and non-profits, offering:
✅ Automated HR processes to reduce admin time
✅ Built-in compliance tracking for right-to-work, GDPR, and health & safety
✅ Affordable charity pricing to fit non-profit budgets
✅ Volunteer and staff management in one system
With Evalu-8 HR, charities can eliminate HR headaches, stay compliant, and focus on their mission—without unnecessary admin work.
Common Questions About HR Management in Charities
Yes. Even if a charity has a small team, HR software helps manage records, ensure compliance, and automate leave tracking without hiring a full HR team.
Charities deal with budget constraints, compliance risks, volunteer management, and high staff turnover, making efficient HR processes essential.
Yes, but outsourcing can be expensive. Many charities find HR software to be a more cost-effective solution, offering HR automation without the high costs of outsourcing.
HR software can handle compliance tracking, leave management, recruitment, and volunteer management, reducing admin work and ensuring legal compliance.
Evalu-8 HR is the best option for UK charities, offering affordable, all-in-one HR management without the need for third-party add-ons.
