Execs lead pay rises for not-for-profit staff

Posted on 31 Jul 2023

By Matthew Schulz, journalist, Institute of Community Directors Australia

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The study into sector salaries shows payrates have rebounded in recent times.

Not-for-profit CEOs are enjoying their highest pay bump for a decade according to a sector-wide study into remuneration.

Salary survey
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The Pro Bono Australia salary survey recorded average rises of more than 10% for executives, with the highest payrates recorded in the research and medical field, followed by aged and community care.

The report also found there had been significant increases across the board, with those switching jobs nominating “more competitive remuneration” as the number one reason for moving.

The study found that despite the pay push, 41% of respondents were “very unlikely” to leave their current jobs in the wake of the workplace unrest dubbed the “Great Resignation”, which peaked in 2021.

Back then, an Institute of Community Directors Australia study of more than 1000 workers found nearly 40% were either “highly likely” or “quite likely” to leave their jobs in the coming year.

As far as boards themselves go, just 16% of directors said they were paid a fee. A similar percentage received access to events.

NGO Recruitment director Richard Green said in a preface to the report that his firm’s experience showed wages are on the rise.

“After several years of tepid wages growth, inflation and cost of living increases are putting upward pressure on salaries across all industries. The NFP sector, where remuneration is normally fairly restrained, is particularly sensitive to these economic conditions.”

Richard Green
NGO Recruitment director Richard Green

He said pressure for higher wages was also coming from a highly competitive jobs market caused by low unemployment, skills shortages and reduced migration.

“Now in 2023, faced with increased mortgage repayments, employees are looking for pay rises and candidates are expecting a job paying more to entice them away from their existing role.”

He said organisations needed “more sophisticated attraction and retention strategies to secure the limited number of increasingly expensive candidates available.”

NGO Recruitment’s own hiring and salary snapshot found that 91% of organisations intended raising salaries in the coming year, up 20% on the previous year.

The Pro Bono salary data examines trends across 39 position types in the sector, with two-thirds of responses from HR managers.

The study also confirms the continued gender imbalance in the sector, with three quarters of respondents being female, while most respondents worked full-time over a five-day week.

The analysis was conducted by PriceWaterhouseCoopers (PwC).

The full report costs from $319, but Institute of Community Directors Australia readers are eligible for a 15 per cent discount using this exclusive code: oc15off until September 30, 2023.

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