Human Resources Management for Public and Nonprofit Organizations

146 Human Resources Management for Public and Nonprofi t Organizations

made as to who will fi ll those positions. In public and nonprofi t organiza-

tions, the recruitment and selection of competent employees are critical

responsibilities because people are central to delivering the programs and

services that constitute these organizations ’ reason for existence.

Selection techniques used to hire applicants must comply with federal

laws and guidelines and be job related. They must not unfairly screen out

protected - group members for reasons unrelated to the job.

The importance of performance management is addressed in Chapter

Eight. Performance evaluations provide management with essential infor-

mation for making strategic decisions on employee advancement, reten-

tion, or separation. Evaluation links training and development with career

planning and an agency ’ s long - term human resource needs. Used to sup-

port job analysis and recruitment efforts, performance evaluations are an

important component for forecasting the KSAOCs available within the

organization.

Chapter Nine explains the development and maintenance of com-

pensation systems. Compensation is the largest expense of public and

nonprofi t organizations: from 60 to 80 percent of the operating budget

goes to employees ’ salaries and benefi ts. The design, implementation, and

maintenance of compensation are therefore important parts of SHRM.

Decisions about salaries, incentives, benefi ts, and quality - of - life issues are

important in attracting, retaining, and motivating employees. Strategic

decisions about pay levels, pay structures, job evaluation, and incentive

pay systems infl uence the ability of an organization to compete in the mar-

ketplace, attract the most qualifi ed and competent applicants, and retain

its most talented and productive employees. Compensation systems are

infl uenced by local, state, and federal laws and by external, internal, and

employee equity considerations.

Benefits are part of the compensation system and are commonly

referred to as indirect compensation. Benefi ts are an important part of

the compensation package. An attractive benefi t package can assist in the

recruitment and retention of qualifi ed employees. Chapter Ten discusses

some of the more traditional benefi ts offered by employers, such as health

insurance, retirement pensions, and paid time away from work, in addition

to less traditional benefi ts such as child and elder care, fl exible scheduling,

and educational assistance. Changing demographics, family needs, and

employee priorities require a greater range of employer - provided benefi ts

than what was offered in the past.

The demands placed on organizations keep changing, and technol-

ogy has taken on much of the mentally and physically repetitive tasks that

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