Not-for-profit sector in battle to retain top talent: salary report

Posted on 11 Jun 2024

By Greg Thom, journalist, Institute of Community Directors Australia

The lure of better pay elsewhere has emerged as the primary driver of not-for-profit staff turnover, according to a new report.

The Pro Bono Australia Salary Survey Report revealed that of the organisations finding it difficult to retain staff, “more competitive remuneration elsewhere” was the main reason for 38% of them.

The news comes as the sector continues to grapple with rising overhead costs and competition from other industries to attract and retain talent.

Be Recruitment co-founders and managing directors Jenny Rosser and Zena Clark said in their foreword to the report that the NFP sector was often associated with “more conservative” pay scales.

This made sector organisations particularly susceptible to the current economic environment, characterised by inflationary pressure and rising living costs, which are pushing up salaries across all industries.

“The current job market is competitive, characterised by low unemployment rates, skills shortages, and the hangover of the covid pandemic, heightening the need for timely data,” said Ms Rosser and Ms Clark.

They said that employees, despite their dedication to the cause, often find themselves grappling with the reality of lower salaries and limited growth opportunities within NFP structures.

“While the salaries of many roles within not-for-profits are constrained by modern awards, this is not the case for all positions within the sector.”

The report also revealed that nearly a quarter (21%) of survey respondents cited burnout as the main reason for attrition in their organisation, followed by personal reasons (17%) and lack of career development or job satisfaction (13%).

“General burnout is a formidable adversary within the not-for-profit sector,” the report said.

“The relentless pursuit of noble goals, coupled with limited resources and understaffed teams, exacts a toll on employees’ mental and emotional well-being, leading many to seek greener pastures for the sake of their health and sanity.”

“The challenges in front of us are evident: with the cost of living on the rise, employees are seeking higher wages, and candidates are looking for more attractive offers to consider changing roles.”

Be Recruitment co-founders and managing directors Jenny Rosser and Zena Clark.

The report revealed that more than 67% of human resource managers relied on their organisation’s cause and reputation as their top recruitment strategy, while work flexibility was the next most relied-on strategy (34%).

“The challenges in front of us are evident: with the cost of living on the rise, employees are seeking higher wages, and candidates are looking for more attractive offers to consider changing roles,” said Ms Rosser and Ms Clark.

“Consequently, not-for-profits are refining their recruitment strategies, placing a stronger emphasis on both attracting and retaining top talent.”

Now in its 12^th year, the Pro Bono Australia Salary Survey Report analysed remuneration trends in 37 roles ranging from CEO and non-executive director to customer service officer across the not-for-profit and for-purpose sectors.

The 2024 report costs from $349, but Institute of Community Directors Australia readers are eligible for a 20% discount using this exclusive code: OC20OFF.

Join the conversation on this important issue on the Not-for-profit Happy Hour - Australia group on Facebook