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Nine out of ten charity FDs expect pay rise

Finance | Vibeka Mair | 10 Feb 2009

Over 90 per cent of charity finance directors expect a pay rise this year, despite the harsh economic climate, according to an employment survey by the Charity Finance Directors’ Group and Hays Recruitment.

The report into charity finance salaries and working conditions collated 563 responses from charity finance professionals at all levels.

Almost all respondents anticipated a general pay rise of 2.5 per cent this year, with two in five expecting it by April. The figure, however, is less than the 3.18 per cent average pay award received last year.

In their foreword Keith Hickey, chief executive of CFDG and Andy Robling (pictured), UK director at Hays Public Services and Not for Profit, said the general message from respondents seemed to be one of “caution, not gloom”.

“On the whole, salaries have held relatively steady (particularly among charities up with up to £10m income), although typical salaries for transaction and support positions in some of the larger charities appear to have dropped a little, and the salary range for many roles appears to have widened,” they said.

However, the survey also found that compensation for overtime was poor. Despite 95 per cent of respondents doing on average an extra day’s work in overtime each week, 65 per cent said they were never compensated, and only 7 per cent said they were always paid for extra work.

Recession expected to benefit recruitment

The survey’s findings on recruitment, however, were positive. Most respondents said the recession had not impacted their charity’s recruitment plans. And only 10 per cent said recruitment had been frozen.

In fact, the survey found the recession was expected to positively benefit the charity sector by attracting good commercial candidates, making less attractive jobs easier to fill and increasing the number of volunteers available.

But, there were concerns about retaining commercial candidates in the longer term, due to the salary gap between the voluntary and private sector.

Looking forward, respondents said they were carefully sense-checking all decisions to hire and proposed salary increases to keep a tight rein on resourcing issues.

High staff retention

Turnover for accountancy and finance staff was low with 56 per cent of respondents reporting no staff turnover last year.

Flexible working, generous holiday entitlement and good pension schemes were the top three benefits which helped retain staff, according to those quizzed.

Some 80 per cent said their charity offered more than 25 days annual leave to finance staff, and over 60 per cent said staff received a defined contribution pension, training support and flexible working.

Work-life balance, however, was considered below average, with only 47 per cent rating it as good.

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