Charity salaries holding steady

10th February 2009

Charity salaries are holding steady despite the economic gloom: some 90% of charities expect to award a general pay rise in the coming year, although the average expected rise is down 0.7% from last year, to 2.5%. Almost 10% of charities are not expecting to offer any pay rise. These are the headline results from the 2009 Charity Finance Directors' Group and Hays Salary and Employment Survey, which had over 550 respondents.

The survey suggests that staff retention is also currently stable, with two thirds of respondents reporting that turnover of finance and accountancy staff was below average for the sector – in line with last year’s results.

The trend for benefits is ongoing from last year. A generous annual leave entitlement, flexible working and a defined contribution pension scheme are some of the most commonly offered benefits and those most sought after by employees. Of those charities that offer flexible working, the most common form is flexitime, at 82%, and two thirds of senior finance professionals are now also offered home working for part of the week.

The most common form of pension provision is stakeholder/ money purchase/ defined contribution, at 83%. Three-quarters of the schemes are contributory for all; employer contributions range from 0% to 17.5%, with most contributing between 6% and 10%.

Looking at broader employee contentment, the survey found that only 14% feel that their work-life balance is poor, even given the fact that most charity finance directors tend to work an extra day a week over their contracted hours, and 68% are rarely or never compensated for that time.

Keith Hickey, CFDG Chief Executive, says, ‘Salaries and staffing are currently holding steady. However, these are volatile conditions, and whilst over half the respondents indicated that the recession would have no impact on recruitment plans, many will now be looking very carefully at their funding position and carefully checking all hiring decisions and proposed salary increases.’

Jan McQuaker, Business Director for charity and not-for-profit at Hays, comments, ‘Increasing numbers of jobseekers are looking to move from commerce into charities following the downturn, and this will naturally mean more competition for those looking to gain employment in the not-for-profit sector. The majority of jobseekers have researched the sector, understand the different culture, and have gained a strong understanding of what they are entering into. These jobseekers are viewing the transition as a long-term career move rather than a short-term security measure.”

 

- Ends -

 

Notes to Editor:

The Charity Finance Directors' Group was set up in 1987 and is an umbrella group that specialises in helping charities to manage their finance-related functions. CFDG’s 1,560 plus members are responsible for the finances of charities with a wide variety of income levels. Between them our members manage some £14.7 billion in charity income per year.

Hays is the leading global specialist recruitment group. It is market leader in the UK and Australia, and one of the market leaders in Continental Europe. As at 30 June 2008, the Group employed 8,872 staff operating from 393 offices in 27 countries across 17 specialisms.

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