45% of charities and non-profit organisations struggle to attract talent to the sector
New figures reveal 56% of employees working in charities, social enterprises and not-for-profit organisations have abandoned the sector in search of higher-paid jobs in other industries.
The annual Rewarding Industries 2023 report, created by Endsleigh’s research, surveyed financial decision-makers across the third sector to analyse how organisations are responding to the challenges faced in today’s climate. It highlights the extent to which talent recruitment and retention within third sector organisations have been impacted by the financial crisis.
The report reveals in addition to the 56% of workers, who have already left the sector, business leaders fear more is to come. Of those surveyed, 77% of their employees are tempted to look for a higher-paid job in the next 12 months as many struggle to cope financially.
It’s not just retaining talent in the sector, 45% of respondents say it has been increasingly more difficult to attract and recruit new talent into the industry, without the competitive salaries offered in the corporate sector. Introducing more hybrid working practices was the most popular way for organisations aiming to keep hold of passionate staff, with 39% offering employees more flexibility with their location of work and working hours. A further 24% have reduced working hours to improve work-life balance.
As inflation and living costs remain high, 42% of senior leaders feel under increased pressure to improve salaries and financial remuneration. As a result, 38% increased staff wages, 29% increased pension contributions and 28% introduced bonus schemes as a way to reward employees.
Nearly half, (49%) said pressure on staff mental health – also linked to the cost-of-living crisis – was a concern. As a result, 32% of third-sector organisations have responded by introducing more well-being products to support staff’s mental health. In addition, some organisations are focusing on their green credentials: 29% have introduced new Net Zero ambitions and 20% have become a B Corp.
The data reveals that although improvements have been made in the third sector, employee benefits are far behind where they should be. Of those surveyed, less than 1% say they had introduced or improved employee benefits, such as health insurance, cycle-to-work schemes or employee assistance programmes.
Alison Meckiffe, CEO, Endsleigh Insurance, said: “It’s been one of the most challenging years for the third sector, even more so now than during the height of the pandemic. Charities, social enterprises and not-for-profit organisations are finding themselves exposed to the cost-of-living crisis. The impact on talent recruitment, retention and wellbeing within the sector is of a huge concern.”
For the full report visit: here