By Gayle Brandel
The nonprofit sector continues to grow and remains an integral part of the national corridor. The picture that emerges from an extensive survey conducted by PNP Staffing Group is that many nonprofit organizations, certainly in the New York to Washington corridor, are expanding at a substantial rate and planning for growth over the next decade. Hiring in the sector is at an all-time high.
PNP’s 2015 – 2016 Nonprofits & Associations Salaries and Staffing Report, with findings and trends for the greater New York City, Philadelphia, and Washington, DC areas, provides impressive evidence of continuing growth, as well as significant changes in the nonprofit sector.
For 2016, 58% of respondents plan to expand and add staff, particularly in program development and innovations. The PNP survey in 2014 showed that 52% of respondents added staff that year, compared to 56% in 2015. This predicted growth, together with other changing demographic factors (such as the rising dominance of Millennials), means increased competition for the most capable staff. A significant 51% of the survey takers said that they are "concerned or very concerned" about being able to hire needed talent for open positions in 2016.
The principal challenge and concern going into 2016 is the overriding issue of "talent management," that is, recruiting and retaining the most talented staff in an increasingly competitive marketplace. As unemployment continues to drop (reported at 4.9% in January 2016), and the nonprofit sector continues to grow, the demand for capable staff, finding the right staff to hire will become increasingly more difficult.
To accommodate this new and changing talent profile, nonprofit employers and HR managers are more willing to overlook employee movement from job to job. Most note that they are "unconcerned" if a job candidate has had three to four jobs over the past 10 years.
- 78% of New York area respondents noted that they might bring the matter up in an interview, but recognize more frequent job change today.
- 21% of managers note that they are looking for three good, productive years from a new hire.
PNP’s survey also shows that demographic shifts are creating a need for nonprofits to generate an effective organizational recruitment strategy that spreads a wide net and attracts hidden talent in the marketplace. In New York, 51% plan to increase salaries for key positions; 44% say they will develop a strategic talent acquisition plan; and 42% of survey respondents are moving to structure more attractive benefits packages.
The demand for talented staff is also pushing up salaries. The report gives compelling evidence to support the idea that without making and keeping salaries competitive, organizations will have difficulty attracting and holding on to the best staff.
Interestingly, the New York report notes that salaries at the top are rising faster (3–5%) than mid-management and support positions (1–3%). A large percentage of survey respondents registered concern that salaries for middle level and support positions in nonprofits are too low to attract top talent.
For 2016, 57% of respondents expected salaries to increase 1–33, 25% by 3.1–5%, 6% said salaries will increase by more than 5%; and 22% of respondents said that salaries will remain flat.
This year’s survey report also reflects the growing recognition that an organization’s brand—how an organization is perceived—is more and more critical, and nearly as critical as salaries in recruiting and keeping great staff. The matter of organizational brand has become particularly relevant as social media continues to drive to drive the perception of an organization’s attractiveness to present and prospective employees. Over 48% said that they now recognize this challenge and have plans to "strengthen employer brand."
Other ways New York nonprofits plan to enhance their talent recruitment capabilities include:
- Increasing salaries for key positions (51%);
- Strengthen employer brand (48%);
- Enhance current HR and recruitment practices (45%);
- Develop strategic talent acquisition plan (44%);
- Structure more attractive benefit packages (42%); and
- Increase outreach through social media (33%).
On the basis of its survey findings from over 1100 respondents, PNP predicts that the nonprofit sector will continue to grow, and that competition in the marketplace for talented staff will intensify. In this way, our findings are significant.
The Nonprofit Salaries & Staffing Report is available for free on PNP’s website: www.pnpstaffinggroup.com. The report also includes salary ranges for those in management, finance, membership, programs and education, human resources, marketing and communications, technology, and administration, based on size of the organizations.
Gayle Brandel is President of PNP Staffing Group. She can be reached at 212-546-9091 or through its website at www.pnpstaffinggroup.com.