Employer Insight: Not-For-Profit Pay and Rewards
Guest blog: Lyn Brieseman, Senior Consultant and Strategic Pay
As an employer how do you know how much to pay your people?
Strategic Pay surveys not-for-profit organisations on what they are paying their people as part of our regular survey of what is being paid across the whole market. Our recent survey in May 2017 surveyed 255 not-for-profits, who collectively employ over 15,020 employees.
Similar increases as last year
Our 2017 survey indicates that there have been similar levels of salary increases as last year.
Across all organisations who contributed to the latest survey of the not-for-profit sector, movement in remuneration levels was 2.0% (roughly in line with inflation). This is higher than the increases participants indicated they expected to see over the same period (with predicted median forecast being 1.5%).
Where are the increases?
When we look at the actual increases, the largest increases are at General Staff levels, rather than management.
Minimum wage increases will be influencing these larger movements and we can expect this to be the same next year as a result of the care worker wage settlement and the introduction of the Living Wage in many organisations.
Salary increases compared to previous year:
We asked organisations whether their overall salary increases were the same, higher or lower than last years:
- 24% higher
- 56% about the same
- 20% lower
Senior Management and CEO level roles experienced smaller increases in the last 12 months.
Our March 2017 NZ Remuneration Survey market research shows the private sector has responded to talent shortages, and the relatively positive economic conditions, with increases above 3% across all levels of roles. These increases are getting closer to pre-Global Financial Crisis levels and above the projected 2-2.5% increases reported in the 2016 survey of the overall market.
Appraisal and performance
How do you decide whether your staff should get a salary increase? On what basis? Our survey indicates that a significant number of not-for-profits follow best practice and relate an individual’s’ pay increases to performance.
- 84% of respondents use a formal performance appraisal system to assess employee performance
- 75% vary the level of salary increase according to performance
- 6.8% of top executives received a bonus in the past year, compared with 1.3% of general staff
People come to work for more than the money
Our latest survey in the not-for-profit sector also asked participants about other rewards and benefits the organisations offered their employees.
- 73% of organisations provide additional leave to employees over and above the statutory entitlements; this includes jury leave, study leave and bereavement leave.
- 97% of organisations offer some form of work/life balance options to their staff (see graph below).
About Strategic Pay’s not-for-profit remuneration report
The 2017 published report contains comprehensive remuneration information by job size and by benchmark job analysis in the following areas:
- Not for Profit Management (including CEOs)
- Administration and Support
- Communications and Information Management
- Promotion and Marketing
- Customer Services
- Facilities and Supply
- Finance and Accounting
- Human Resources
- Information Technology
- Policy and Planning
- Not for Profit Health
- Social Services
- Sport and Recreation
Analysis and features
In addition to the comprehensive remuneration benchmark pages, the survey report includes analysis and trends such as:
- Not for Profit Sector Commentary
- Market Movements and Salary Increases
- HR Policy and Practices
- Additional Benefits and Variable Pay
- Regional Analysis
- Organisation Type Analysis
Data is collected from February, with the report published early June each year. Those who participate in the survey can access a 50% discount on the final report (non-participant pricing starts from $590). Contact the Strategic Pay Survey Team ([email protected]) to register for the next survey.