This chapter reviews some of the enduring principles of good Human Resource Management (HRM) and examines the extent they are aligned with and challenged by working with employees and volunteers in the not-for-profit sector. It outlines some of the motivational theories and accompanying research as applied to not-for-profit (NFP) employment. The chapter reviews of some key HRM functions in relation to Non-profit institutions (NFPs): attraction and retention; learning and development; and recognition and reward. It emphasizes the workforce and organisational diversity in NFP organisation and the challenge facing leaders as people managers. Although there is some evidence that employees of NFP organisations tend to be paid less than their counterparts in the for-profit sector, to an extent this reflects the industries where the NFP sector is concentrated such as educations and social services. Balancing the needs of paid and unpaid staff and diversity of working arrangements found in the NFP sector poses a challenge to leaders.