Recruiting is an important aspect of running a not-for-profit, as it is for any organization. It does, however, come with its own unique challenges. Are not-for-profits capable of matching salaries with their rivals in industry? Is it even advisable to try? If not, can NFPs level the playing field with other benefits or perks?
Our catalogue of not-for-profit profiles, think pieces, and advice articles have been shining light on these challenges and their solutions for years. Let’s recap the situation.
Salary Hikes in NFP Sector Inevitable, but Not Quick
“Most not-for-profit salaries are nearly on par with those offered for similar positions in the for-profit world,” says Karen Epp.
The senior recruiter has a long history of recruiting successful candidates within the sector. According to her, the difference is the speed with which those salaries adjust.
“During periods when salaries are escalating quickly, not-for-profits are bound by annual budgets and find themselves unable to make rapid adjustments,” says Epp. “Once things settle down, not-for-profits are largely able to adjust and keep pace remain in the ballpark of their competitors.”1
“Not-for-profit salaries will usually be less than the highest range of salaries for private sector professionals in comparable positions,” says Goldbeck Recruiting President Henry Goldbeck. “As professional salaries increase, NFP salaries do likewise, but will usually remain at the lower end of the range given comparable sizes of the organizations and responsibility of the positions.”2
Should Not-for-Profits Offer High Salaries?
Before determining how they can keep pace with their competitors in the for-profit world, not-for-profits must first ask themselves whether they should even endeavour to do so. It’s a challenge that’s unique to the sector.
When private employers offer their staff a pay bump, this is generally seen as a good thing. Sharing the wealth may lead to a round of good press, or at least some beneficial word of mouth.
Not-for-profits, on the other hand, risk being seen as frivolous or wasteful, thus weakening their standing with some stakeholders.
“We speak with donors who really care about salaries all the time,” says Greg Thompson, director of research at Charity Intelligence. “Some folks just think it’s wrong, it’s immoral even, for someone working at a charity to get paid very much.”3
How Can Not-for-Profits Attract Top Talent?
NFPs counter that good leadership costs money, and, without it, organizations are unable to carry out their mission effectively. What happens, then, when they’re simply unable to match the going rate for strong leadership candidates?
This is where the social mission comes in. A white paper published by Goldbeck Recruiting in 2022 describes the non-monetary benefits of a career in the not-for-profit sector. Chief among these benefits is the feeling of satisfaction that comes from contributing to the social mission.
“At the end of the day you know you’re working towards something you believe in,” said Mary Anne Perta, Senior Manager, Recurring Gifts & Mid-Tier at Plan International Canada. “You’re working collectively with other co-workers who are equally passionate about a specific cause. It’s something that really differentiates the corporate world from the not-for-profit world.”4
Other potential non-monetary benefits include the ability to wear multiple hats, an elevated degree of work-life flexibility, and opportunities for career development. If marketed correctly, this can be a winning pitch with certain talented individuals.
The Realities of Compensation at Not-for-Profits
The reality, however, is that money does matter. Calgary-based NFP leader Lourdes Juan spoke about the challenges with Goldbeck.
“I think there’s a notion that everyone works in the not-for-profit space out of the goodness of their heart,” she said.5 “People have to put food on the table and they have their own ambitions and goals. We need to present more than just the social impact mission.” Juan says that leaders do move from NFPs into the corporate world on a regular basis, but notes that new and effective leaders can often be recruited from within the ranks of the organization’s volunteer base.
Using Recruiters in Not-for-Profit
Faced with these challenges, not-for-profits may wish to enlist the help of an executive recruitment agency. Properly presenting the position is a strong first step. Goldbeck Recruiting’s vast network and strong knowledge of the labour market means that we’re uniquely qualified to assist in not-for-profit candidate searches.
What’s more, we offer discounts to those in the not-for-profit sector. With so much on the line, it’s not only in the organization’s best interest that strong leadership be found, but indeed all of society’s.
Cited Sources
1 Direct communication with Senior Recruiter Karen Epp
2 Direct communication with Goldbeck Recruiting President Henry Goldbeck
3 Be wary of charities that pay their staff too much—or too little – macleans.ca. Accessed July 23, 2024. https://macleans.ca/society/be-wary-of-charities-that-pay-their-staff-too-much-or-too-little/.
4 Direct communication with Mary Anne Perta
5 Direct communication with Lourdes Juan
