Top 3 Reasons Secular HR Doesn’t Work in Ministry
As a nonprofit, you already know there are differences between how your organization and a for-profit operate. As a faith-based nonprofit, you further distinguish yourself. Your goals are different, your taxes are different, and your vocabulary is different. It only makes sense for your HR to be different, too. Recognizing the following three major differences between ministry and secular HR will help inform your day-to-day HR operations and set you up for success.
Different Focus
The most drastic difference between secular and ministry organizations is the focus. In a for-profit organization, the goal is likely the bottom line. But for the ministry world, staying in the black is secondary, at best. Ministry organizations have a greater purpose: people. This completely changes everything they do, including HR. When the metrics are different, people are valued differently. And it’s not just policies that change, but the rationale and heart behind them.
When profit is not the main focus, HR can be more difficult. Nonprofits typically have access to fewer resources. It’s just flat harder to care well for people while on a tighter budget. The combination of low resources and high focus on people means HR needs to be more creative and more flexible. A lack of resources can also have a negative effect on the quantity and quality of education in and around HR, maybe even viewing HR as nonessential, believing a people-centric mission will automatically carry over into employee culture. However, what you don’t focus on can’t improve.
Different Compliance Guidelines
Compliance issues are definitely one of the biggest problems we encounter when talking to churches and ministry organizations. Ministries are so focused on their very vital mission they can miss the mark on issues they deem less important. Of just as much concern, ministries often assume that HR-related laws do not apply to religious organizations. Not knowing the rules, guidelines and red tape can put any organization on the road to disaster. This lack of HR education often turns into huge knowledge gaps when it comes to compliance issues, adequate pay and benefits, and HR best practices.
Secular HR is already jumping through a three-ring circus of hoops. In the ministry world, those hoops are simply multiplied and set on fire. For example, hiring a minister is unlike anything seen in the secular world! HR must carefully tread through the compliance minefields of ordination requirements, housing allowances, Social Security opt-outs, self-employment taxes, and unusual employee tax withholding rules. All this while meeting the requirement of both the IRS and the Department of Labor.
Different Risk Management
Risk management for secular and ministry organizations is vastly different and touches on every aspect of HR. Failure to understand the differences can end in a derailed ministry, ruined reputation, and fiscal disaster. Being able to successfully operate and fully pursue the organization’s mission reasonably free from the risk of legal consequences requires knowing how to follow the nuanced laws for faith-based nonprofits for hiring, benefits, leaves, terminations, and tax withholding. Even best practices for background checks differ from the secular business world!
To further complicate things, the current culture doesn’t typically see eye-to-eye with the mission of many ministries, leaving religious organizations to wisely walk the thin line between worldly standards and a biblical worldview. The hiring process is a great example: a for-profit organization follows laws to hire anyone whose skills qualify them for the role, while ministries hire staff based on skill, beliefs, and behaviors! Culturally, this is seen as not embracing equality when, in fact, ministries must be selective in hiring to ensure their employees are on board with their mission. Those qualifications may include unpopular lifestyle standards. Being able to be selective without the risk of legal reprisal requires a great deal of HR knowledge.
Tackling the Differences
So, how do you ensure your organization doesn’t just survive but thrives with a healthy and compliant culture? Education is the key. Resources may be tight and those flaming hoops are certainly daunting, but having HR professionals that understand the intricacies unique to the ministry world can create an environment in which people thrive and even better serve the mission of the organization.
Most people don’t enter the ministry world with HR in mind or HR training under their belt, but we have the solution. We offer a course and certification specifically for training current or upcoming HR staff. Click here to learn more about the HR Ministry Professional Certification and course.
Dive into the differences deeper with our webinar, “Ministry vs. Corporate HR: Navigating The Differences.”
Authored by the HRMS Team, a group of dedicated church HR experts who draw from extensive ministry experience to keep your organization compliant and healthy. Schedule a call and find out how we can help you simplify your organization’s HR here.