Rethinking HR in Nonprofits: Prioritizing Employee Well-being for Sustainable Impact in South Africa and Nigeria

Abstract

Employees are central to organizational success, and their well-being significantly impacts productivity and organizational growth. However, Human Resource (HR) practices that support employee well-being in for-profit organizations often differ from those needed in nonprofit sectors, particularly within African contexts. This study investigates the influence of well-being-related policies, practices, and products on employees in African nonprofits, specifically focusing on organizations in Nigeria and South Africa. Through literature reviews and assessments of four nonprofits, the research reveals that traditional HR practices covering staffing, performance management, compensation, training, and career development often do not align with established HRM theories. Many organizations lack dedicated HR roles, and there is a notable scarcity of policies and tools to promote employee well-being. Furthermore, leadership accountability and a well-defined organizational culture are frequently minimal. Given the donor-dependent nature of these nonprofits and the importance of maintaining HRM standards, this study develops a framework for integrating employee well-being as a key performance indicator (KPI). This framework redefines HR practices as a functional role rather than merely a position and emphasizes gradual investment in employees. It introduces practical tools, such as an employee well-being charter and a visioning matrix, and encourages nonprofits to implement these tools, set measurable targets, and ensure accountability through metrics like employee satisfaction surveys. This approach aims to enhance transparency and foster a culture of continuous improvement in employee well-being within African nonprofits.