Insights from HR Checkup: Most organizations have no succession plan, no policy for ethical AI use

HR Checkup gathered responses from hundreds of nonprofits and charities across Canada to explore the state of human resources practices in the sector. With 50 questions covering core areas — from job descriptions and hiring processes to digital infrastructure, equity, wellness, and strategic planning — the Checkup offers valuable first-hand insights into common HR strengths and challenges in the sector.

Overall Results

The results show examples of organizations that are highly committed to improving HR standards, while also grappling with inconsistent capacity and evolving expectations. Here’s a breakdown of average response types across all 50 questions:

• “Yes” and “Somewhat” responses together accounted for 67% of answers, indicating that most organizations are either implementing or working toward best practices.
• “Yes” responses led most frequently on questions related to basic hiring practices (e.g., job postings, time-off policies, formal interview processes).
• “Somewhat” responses were common in areas where organizations are aware of best practices but haven’t yet fully implemented them.
• “No” responses were concentrated in areas like succession planning, AI policies, and impact measurement of training.
• “Unsure” responses, while rare, signaled a need for greater internal clarity — especially on policies related to equity and digital systems.

Top Strengths Shown in the HR Checkup

The most positively affirmed questions in the Checkup included:

• Performance Review Practices: 64% said they have structured review processes in place.
• Job Posting Quality: 61% said their postings are thoughtfully designed and mission-oriented.
• Internal Feedback Systems: 59% confirmed regular opportunities for employee feedback.

These scores suggest participating organizations are investing in transparent hiring and employee development practices, offering a strong starting point for equity and engagement. Still, there’s significant room for improvement — over a third of organizations have yet to implement structured review processes, highlighting that progress is ongoing.

Common Challenges Identified

Questions with the highest “No” responses highlighted areas that may need more focused attention:

• Succession Planning: 74% said they have no leadership transition plan.
• AI Policy: 61% reported no policy on ethical AI use.
• Training Impact Measurement: 60% said they don’t assess the impact of training programs.

These findings point to a gap in future-oriented planning and digital governance — and reflect shared barriers some organizations are working to overcome.

Observations by Organization Size

• Small organizations (1–60 employees) tended to perform well on foundational HR practices like job postings and time-off policies, but often lacked formal succession planning and training evaluation strategies.
• Medium organizations (61–100 employees) showed consistency in structured onboarding and performance reviews, yet still faced challenges with newer areas like equity policies and AI governance.
• Large organizations (101+ employees) had strong formal HR systems but still showed gaps in strategic areas like career advancement, AI policy, and measuring training impact — suggesting structure doesn’t always equate to innovation.

Observations by Province

• Ontario: Strongest in foundational practices like job descriptions and compliance.
• Quebec: Lower clarity on newer policy areas like digital governance.
• Atlantic & Prairie Provinces: Struggled with succession planning and training strategies, possibly reflecting regional disparities in HR resources and support.

Observations by Organizational Status

• Registered Charities: Slightly stronger in compliance and formal structures.
• Nonprofits: Often scored lower on equity goals, progression planning, and technology policies.
• Private Companies/Government Entities: Too few responses for a robust comparison, but some demonstrated advanced digital practices.

HR Checkup offers a snapshot of how a group of Canadian nonprofits is navigating modern HR practices. The data reveals promising examples of progress, alongside clear areas where support and strategic focus are still needed. With increasing attention to equity, employee wellbeing, and technological readiness, there is a strong opportunity to position HR not just as a compliance function — but as a key driver of organizational resilience and mission success.

Organizations can use this Checkup as a benchmarking tool, a prompt for internal dialogue, and a call to advocate for the resources required to strengthen their human infrastructure.

Take HR Checkup to diagnose your organization’s HR health today. Completing the Checkup will provide you with a free customized HR “prescription” for your organization, with hands-on advice and recommendations on areas for growth as well as resources and templates to get you started. As you develop your HR practices, you can return and retake the Checkup to track your progress.