Implementing a full HCM suite in a not-for-profit environment
MTC Australia is a not-for-profit (NFP) organisation that for the last 20 years has been helping people gain employment, skills training, work experience and greater self-confidence. MTC offers support through a range of training courses, employment services, youth programs and community initiatives.
Operating from more than 30 locations, with close to 500 dedicated staff, MTC delivers quality services to anyone at risk of social and economic exclusion. MTC assist over 35,000 people annually to complete accredited training, find meaningful work and become self-sufficient. MTC offer assistance to those wanting to make a positive change in their lives, enabling disadvantaged Australian’s to become self-sufficient and less reliant on government support.
MTC obtain funding through federal and state based programs such as Job Services Australia (JSA), Youth Connections and the Skills for Education and Employment (SEE) program. MTC’s General Manager of People & Culture, Kalena Jefferson, explains that this grants based environment means an onus on efficiency...
"If you're in a grant-based environment, your money is finite. So you've got to spend it really wisely and you can't waste money being inefficient."
However, it is common for tension to exist between the social mission of a NFP organisation and the management of its performance.
This is because the NFP industry has developed with a different set of financial imperatives to the for-profit world. There is less reference to the bottom line, which can be a useful tool to bring about organisational efficiency. Kalena Jefferson explains that...
“people join a NFP to be benevolent, but in fact survival is all about performance”.
While the profit motive might not be as strong in the sector, NFP’s do need to emphasise the efficient use of resources. MTC also belongs to an emerging class of organisations classified as ‘social enterprises’.
This means that an annual surplus generated through government funded programs is invested in developing staff, the organisation, and to fund ‘give back’ programs for the community, such as Warakirri College and Minto Access Point.
At MTC there is an understanding that the most efficient use of time and resources means the surplus and the programs it funds, will thrive.
The MTC procurement process was always about finding an integrated suite of Human Capital Management (HCM) products which could help drive efficiencies through the organisation. However, MTC originally started looking at the suite from a payroll centric view. They believed that a payroll provider...
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