Undoubtedly, we are still seeing a shift in the employment market to that of a ‘buyers’. In March of this year, Charities Institute recorded that 79% of organisations were struggling to hire, as there is an oversaturation of roles on offer in the sector. Increasingly, nonprofits find their talent being poached by the corporate organisation with a higher profile, higher pay, better pensions and employment guarantee. ‘When Charity Staff leave an organisation, 62% move out of the charity sector altogether’. Restricted funded organisation, the likes of section 39’s, find themselves losing staff due to better benefits elsewhere. Rising Inflation prices are also a consistent concern that is being felt across sectors. According to the Irish Times, ‘Prices in Ireland rose an estimated 9.6 per cent in the year to July’. With inflation, security and burnout becoming increasingly prevalent worries for staff, do organisations need to start putting emphasis on other non-monetary supports, such as non-paid benefits? 

Staff Retention and Non-Paid Benefits

In the wake of the 2008 Recession, employees working in the nonprofit sector, along with other sectors in the economy, experienced pay cuts and/or pay freezes, worked shorter hours and/or took on extra work for reduced pay. HSE funded organisations saw a funding-cut that has seen organisations recovering to only 70% of pre-recession funds. Staff were left feeling undervalued, underpaid and with a lack of career progression. This caused unforeseen difficulties for organisations, despite their team’s dedication to the mission, they struggled to retain staff due to budget cuts. With inflation on the rise and economic advisors throwing around the word ‘recession’, we can learn from here to get our cards in order in a proactive manner to protect both our organisations and staff. 

Flexibility in Post- Covid Working Environment

In analysis of The Community Foundation’s National Guide to pay and benefits in community, voluntary & charitable sector 2019, some obvious areas for consideration are apparent. ‘Flexibility’, is an element of the report in a post-covid working environment that can be easily addressed by your organisation. Remote and Hybrid policies are essential for providing work/life balance to staff. Though it may seem like an obvious standard to have in place, many companies are enforcing return to work policies. It is important to ask the following questions before proceeding with enforcing new policies. Would your staff prefer to work from home or have flexible working hours instead? Could you offer more days of annual leave to your staff? Do you offer income protection, death in service or have sick leave policy in place that is higher than the statutory amount? Do you offer a pension contribution to all staff or just the most senior of the team?  

There are also certain statutory requirements that could be considered non-paid benefits that your team aren’t aware of. If you have a human resource function, this could be easily bridged by explaining, for example, how to avail of a tax saver public transport ticket or how to get onto the bike to work scheme. If you have a generous maternity or paternity leave policy in place or provide service leave for long standing staff, are your employees or candidates aware of this? Do you provide any educational assistance in the form of study leave or monetary assistance to any or all staff? Could you provide a lower pension contribution to junior staff at 2% to help all staff with long- term financial planning? 

Reflecting on Your Organisations’ Benefits

As The Wheel & The Community Foundation for Ireland compile their most recent research into the non-paid benefits of the nonprofit sector for 2022, it is as good a time as ever to question your organisation’s benefits and career progression structures. What are your staff struggling with and which non-paid benefits are they seeking? Is your organisation large enough to have a Human Resources function? If not, do your board members have capacity to provide that support to staff? Do you provide a career mentor service to younger staff for career progression?  

In response to funding uncertainty, you could provide pay scales, simplify pay structures or introduce a Service Award e.g. a payment after ‘x’ number of years to help retain staff. For staff morale, you could introduce ‘staff away’ days or include a staff wellness programme. For attracting junior staff, could you introduce a graduate programme or offer links with third level institutions.  

The two most important takeaways are: to consider your staff and their needs, and be creative in how to support them within your financial limits. In placing your team, however big or small, at the forefront of your organisational culture, you will undoubtedly see more staff retention and attraction of talent. Job insecurity, burnout and inflation are going nowhere anytime soon and non—paid benefits will continue to be at the centre of candidate’s minds where salary no longer becomes the most important element of contract discussions. 

For more information on staff retention, visit our recent ‘Recruitment and Retention’ event summary, or if you’re interested in expanding your team, contact Fergal O’Sullivan for further details on senior recruitment.

Last Thursday 1^st September, we held an in-person event, ‘Recruitment & Retention Challenges in Nonprofits: Is it just about pay?’ at our head office, Huckletree in the Academy, 42 Pearse Street, Dublin 2. Our speakers included Dennis O’Connor, CEO of 2into3, Fergal O’Sullivan, Head of Recruitment at 2into3, Dr. Rhonda Wynne, Head of For Purpose and Jerome Forde, CEO of HR Duo. Our panellists discussed what is involved to arrive at a thorough pay and benefits analysis of your organisation. Our speakers also shared their insights on the current recruitment climate, including the challenges and opportunities in future.

Dennis O’Connor, CEO of 2into3

Dennis welcomed our attendees by discussing the role of pay in talent acquisition and retention. He highlighted how nonprofit employees are generally not attracted to the nonprofit sector for the promise of salaries that will match the private sector, but for broader purpose. Despite this, nonprofit organisations must be aware of the average salary range within their organisational field. One way to measure this is via salary benchmarking. Dennis noted that a key factor within talent retention is to ‘mind the gap’. If the gap between your organisation’s salary, versus another nonprofit organisation is large (between 20-30% extra) for the same position, talent retention will be difficult. Many employees will become aware of this gap, which could lead to resignation.

Dennis highlights that although pay is an important factor in recruitment and retention, there are many other non-pay factors to consider. Non-pay benefits such as pension contribution by organisation, annual leave, flexible working hours etc. also contribute to the retention of your employees. It is important to have a balance between providing a salary that fits with the market rate, whilst also providing non-pay benefits.

Dennis also addressed the Cost of Living Crisis as an important factor to consider within recruiting and retaining talent. This is an important factor to consider, however, before your nonprofit review your current pay scales, it is in your organisation’s best interest to wait until the 2023 budget is released on 27^th September 2022.

Fergal O’Sullivan, Head of Recruitment at 2into3

Fergal O’Sullivan, Head of Recruitment at 2into3, discussed senior talent recruitment and retention. He discussed the recent changes to the senior nonprofit landscape, including external factors such as Covid, shifting career focus and our current growing economy with full employment. Senior candidates are not actively seeking new positions in the current market. With many uncertain external factors having an impact on their decision, employees are thinking carefully about whether they want to leave a permanent, possibly pensionable, role for a new position which may have a six-month probationary period. They may also have secured a significant level of flexibility with their employer in terms of remote and hybrid working arrangements and are keen not to relinquish this.

From a recruitment perspective, remaining flexible and open to new ways of working is a priority for most candidates. Fergal explains that the majority of candidates do not enter the nonprofit sector, especially when moving from the private sector, with a pay scale motivation. Generally, they want to work for an organisation they believe in. Communicating the other non-pay benefits is therefore extremely beneficial at recruitment stage and managing pay expectations from the very beginning.

Dr. Rhonda Wynne, Head of For Purpose Graduate Programme

Rhonda talked about the future of the nonprofit sector from a graduate perspective. It is important that organisations invest in graduates who will grow within their organisation and become future leaders in the sector. Graduates have many options within the private sector, however, the For Purpose Graduate Programme is Ireland’s only nonprofit graduate programme. Graduates’ motivation to enter into the nonprofit sector versus the ‘for profit’ sector is moreso related to fulfilling a greater purpose than the need for a competitive graduate salary. Moreover, it is extremely important for organisations to focus on developing their graduate’s skills, so they feel valued and know they’re contributing.

Rhonda explains that from the interviews she has conducted, the top priority for graduates is not regarding pay, but for  culture, career growth in the nonprofit sector and flexible working. Therefore, the main concern for nonprofits is to provide a fair graduate salary, but to provide engaging projects, ensuring the graduate is supported and encouraged within their role.  Providing opportunities for graduates in their roles to see the impact of the work in their organisation is extremely important for purpose-driven graduates.

Jerome Forde, CEO of HR Duo

Lastly, Jerome Forde discussed HR Duo’s services. HR Duo automates all the day-to-day HR practices and places critical data in the hands of managers so that they can concentrate on the value-add activities. Having a HR system that ensures organisations can keep track of their employees annual leave, pay and benefits is extremely important for your nonprofit.

If your organisation is interested in recruiting senior talent, contact Fergal O’Sullivan. If you’re seeking graduate talent contact Dr. Rhonda Wynne. Find out more about recruitment and retention in the nonprofit sector.