We typically think of volunteers as invaluable to nonprofit organizations, but for-profit companies can use volunteers too. Your business can benefit from unpaid help, but take care to address several common risks before bringing volunteers on board.
Volunteer Injuries
As volunteers perform duties such as data entry, landscaping, or event planning, they may suffer an injury. Injured employees are covered by your workers’ compensation insurance, but that protection generally does not extend to volunteers.
Your business's general liability policy also will not typically cover volunteer injuries, and a voluntary compensation endorsement is usually intended for employees who travel overseas or company partners. Consider offering or recommending Volunteer Accident and Health Insurance so volunteers have a clear way to manage medical costs, and require volunteers to confirm they have health coverage or sign a liability waiver when appropriate.
Labor Laws
Be careful that volunteer roles do not violate labor laws. At for-profit companies, volunteers generally cannot replace paid employees or perform full-time duties that would otherwise be assigned to staff.
Volunteers should serve by choice—for their own interest, a humanitarian cause, or community benefit—not because they are obligated or coerced into working.
Motivation
Ideally, volunteers offer to help because they are excited about the tasks and committed to the cause. That motivation can dwindle with time, however.
An unmotivated, bored, or frustrated volunteer may stop showing up, hinder productivity, or reduce morale, so plan how you will keep volunteers engaged.
Accountability
Because volunteers are unpaid, you have less leverage over the quality or timeliness of their work. Most volunteers will do a good job, but be prepared to re-do tasks or reassign work when standards aren't met.
Clear role descriptions, reasonable supervision, and regular check-ins help set expectations and reduce the need for rework.
Retention
Volunteers can come and go as they please, which means you may lose important help during key projects. If you don’t have contingency plans to cover duties when a volunteer is absent, your operations could suffer.
Cross-training staff and documenting procedures reduces disruption when a volunteer leaves unexpectedly.
Time Requirements
Volunteers often want to help immediately, but they need orientation, training, and supervision. Someone on staff will need to interview potential volunteers, schedule assignments, answer questions, handle disputes, and ensure volunteers have the resources to complete their tasks.
Although volunteers are intended to save time and money, overseeing them can pull staff away from other responsibilities; review volunteer programs alongside your staffing plan and consider insurance options such as Volunteer insurance or Voluntary Services Insurance where appropriate.
The benefits of volunteers often outweigh the risks, but consult your attorney, insurance agent, and business mentor as you create a plan to address risks and welcome volunteers into your company. If you want to review coverage options with a broker, talk to an agent.
Frequently Asked Questions
Are volunteers covered by my company’s workers’ compensation?
Typically no; workers’ compensation usually covers paid employees but not volunteers, so verify coverage and consider alternative insurance options.
Can a for-profit company use unpaid volunteers?
Yes, but volunteers should not perform full-time roles or replace paid staff, and their participation must be voluntary without coercion.
Should volunteers sign liability waivers?
Many businesses ask volunteers to sign waivers and confirm personal health insurance, but waivers do not eliminate all legal risks and should be reviewed by counsel.
How can I reduce turnover among volunteers?
Provide clear role descriptions, meaningful tasks, recognition, training, and a reasonable schedule to improve retention.