Volunteer vs. Employee - which is better from an organization’s point of view?

By Gary Krupa, CPA

When is it more advantageous to fill a position with a volunteer rather than with an employee?

There are no simple rules to determine whether an employee or a volunteer would be best suited for a particular assignment. There are, however, general guidelines that should be followed when deciding which path is best. Neither a volunteer nor an employee should be given the assignment simply because the supervisor likes that individual.

Here are factors that bear on the cost-effectiveness of volunteers vs. employees:

• Employees are generally better qualified than volunteers to perform specific tasks. The more specialized or advanced the skill the organization needs, the more valuable that skill is. It’s then more likely that the organization will have to hire an employee than rely on a volunteer to perform that task, unless the organization is willing to invest time and money training the volunteer.
• An employee is more likely going to stay with his or her employer longer because it’s difficult for him or her to find another job that pays the same or a higher salary.

•  An employee is more likely going to leave an employer to obtain a higher salary, a better working environment, or for career advancement.

• A volunteer is more likely going to stay with the recruiting organization longer because the volunteer identifies with the organization’s mission.

• When deciding whether to use a volunteer or hire an employee, an organization would be wise not to consider a volunteer’s contribution as inherently inferior to an employee’s. Volunteer labor isn’t simply “free labor”. The volunteer provides a valuable service to the organization. The volunteer gives the organization the benefit of his or her energy, experience and know-how without causing the organization to incur additional payroll costs. A volunteer may be just as qualified to do a job as an experienced professional employee. For example, business executives and CPAs have served as volunteers on Boards of Directors.

Thus, to determine whether to hire an employee or recruit a volunteer, the organization must consider several factors, including but not limited to the worker’s qualifications, attendance record, compatibility with the organization’s values or mission, how well the applicant or volunteer relates to the supervisor, and the organization’s budget. If the organization is a non-profit, the staff member should also have an eagerness to serve the community. The determination should be made on an individual basis.

However, an organization may wish to have a comprehensive policy regarding the use of volunteers vs. paid staff members. The policy can include general recommendations for volunteer recruitment and for determining whether to fill a position with a volunteer or paid staff member.