When to Use Volunteer Labor Resources? An Organizational Analysis for Nonprofit Management

Volunteer labor is commonly used to produce many goods and services in our economy. Many studies examine the supply of volunteer labor and determine why and how individuals give their time without remuneration (Freeman, 1997; Menchik, & Weisbrod, 1987; Smith, 1994; Vaillancourt & Payette, 1986). Fewer studies examine the demand for and the use of volunteer labor by organizations that receive it (Emanuele, 1996; Handy & Srinivasan, 2005). However, not surprisingly there exists a strong demand for volunteer labor; given it’s relatively low cost and individuals willing to supply unpaid labor. For example, 93% of volunteers are engaged by 161,000 nonprofit organizations (NPOs) in Canada (Statistics Canada, 2004 b). In the United States, a national study found 80% of charities use volunteers (Hager, 2004). Disciplines Nonprofit Administration and Management Comments Postprint version. Published in Vrijwillige Inzet Onderzoch, Volume 4, supplement, March 2007, pages 91-100. Publisher URL: http://www.movisie.nl/intranet/docs/VIOTragedyoftheCommons.pdf This journal article is available at ScholarlyCommons: http://repository.upenn.edu/spp_papers/91 Handy, F., & J. Brudney. 2007. ‘When to Use Volunteer Labor Resources? An Organizational Analysis for Nonprofit Management’. Vrijwillige Inzet Onderzocht (VIO, Netherlands) Jaargang 4, pp 91-100 When to Use Volunteer Labor Resources? An Organizational Analysis for Nonprofit Management Femida Handy, Ph.D. en Jeffrey L. Brudney, Ph.D. Introduction Volunteer labor is commonly used to produce many goods and services in our economy. Many studies examine the supply of volunteer labor and determine why and how individuals give their time without remuneration (Freeman, 1997; Menchik, & Weisbrod, 1987; Smith, 1994; Vaillancourt & Payette, 1986 ). Fewer studies examine the demand for and the use of volunteer labor by organizations that receive it (Emanuele, 1996; Handy & Srinivasan, 2005). However, not surprisingly there exists a strong demand for volunteer labor; given it’s relatively low cost and individuals willing to supply unpaid labor. For example, 93% of volunteers are engaged by 161,000 nonprofit organizations (NPOs) in Canada (Statistics Canada, 2004 b). In the United States, a national study found 80% of charities use volunteers (Hager, 2004). Volunteers are an integral part of the labor force for many NPOs, and are regarded as co-producers alongside paid labor (Brudney, 1990, Ferris, 1984). Their importance in the economy has been underscored in a number of national and international studies (Weitzman, et al., 2002; Toppe, et al., 2002; Hall, 2000; Independent Sector, 2001; Salamon & Anheier, 1997). Why do some organizations rely on this labor? From an organizational perspective, larger NPOs usually combine volunteer labor with paid labor and capital to produce a desired output. As such, they receive the average unit of labor below market price; this arrangement allows pricing output at lower than market prices. Other kinds of donations, of money and in-kind goods and services, further allow the NPOs to sell their output at below market prices, or give it away free. Examples of NPOs in educational or health services or soup kitchens testify to this pricing. From the perspective of volunteers, these individuals provide unpaid services and receive non-monetary compensation in return. Volunteering can increase their human and social capital; on-the-job training and social connections made while volunteering can be profitable, augmenting their personal and professional status. For example, a volunteer in a professional association garners prestige and status from serving on the board. Survey research attests to the diversity and value of the benefits received by volunteers (Brudney, 2005; Kirsch, et al., 2000; Toppe, et al., 2002). Several studies show support for volunteers learning specific job skills as well as finding the opportunity to socialize (Schram and Dunsing, 1981;Vaillancourt and Payette, 1986; Fitch, 1987; Menchik andWeisbrod, 1987; Brown and Zahrly, 1989). Notwithstanding benefits, volunteers incur costs in providing volunteer labor, ranging from the opportunity cost of forgone wages or leisure time to out of pocket expenses such as childcare and transportation (Handy & Srinivasan, 2004; Chinman & Wandersman, 1999). From an organizational perspective, successful recruitment of volunteers requires attention to what volunteers get in exchange for their labor. Different organizations use volunteers differently, and thus the non-monetary rewards vary greatly by organization and the type of services it provides, and the nature of the volunteer work offered. Each type of volunteer duty is likely to attract a different kind of volunteer. Hence, recruitment and retention must vary depending on volunteers’ incentives and contribution to the organization. In this article we focus on volunteers and organizations that utilize them. A recruitment strategy would be successful if the volunteer’s aspirations were met by the organizational needs; demands of the organization are matched by the volunteer labor supply. Volunteer labor is best used when the net-benefits of using volunteer labor are positive to the organization, and the net-costs to the volunteer are minimized. Although organizations do not produce detailed cost-benefit analyses of using volunteers, studies show the benefit is positive. Similarly, although individuals do not do an analysis of net-costs when deciding to volunteer, volunteering should yield some benefits, albeit non-monetary. For example, hospitals using volunteers in