Salary increases beat private sector

Finance | 1 Dec 2005

Average basic salaries for staff employed in the voluntary sector increased by 5.3 per cent over the past year, compared with a growth rate of 4.1 per cent in 2004, according to the 17th Annual Voluntary Sector Salary Survey 2005.

This represents a higher rate of increase than that revealed in comparable private sector surveys where the average salary increase was 4.3 per cent.

The survey was published by Remuneration Economics in association with NCVO, which attributed the higher rate of increase to growing employment levels in the voluntary sector and the resultant competition for staff.

It said this was driving up earnings levels in charities in order to be able to attract and retain suitably qualified and skilled staff. High levels of staff turnover have increased the pressure to recruit and retain staff successfully, with the resultant impact on pay levels, it added.

Resignations hit 10.2 per cent, compared with 7.3 per cent in 2004, while in the private sector resignations accounted for only 3 per cent. Given the high rates of staff turnover being experienced nearly half of organisations reported difficulties in retaining suitable staff blaming inability to offer competitive salary levels and lack of career progression.

Similarly, nearly two thirds of organisations were experiencing recruitment problems with salary levels and lack of suitable trained candidates cited as the main reasons.

The survey included data from 178 organisations covering nearly 10,000 job holders.

Directory: National Council for Voluntary Organisations (NCVO)

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