Around one-fifth of charity finance staff that responded to CFDG’s annual HR survey had no pay rise last year, and of those that did get one, the most common award was 1 per cent.
The highest increase was 8 per cent, almost half the 15 per cent top award in 2008.
The CFDG Salary and Employment Survey 2010, carried out in conjunction with Hays, received responses from finance departments in 470 charities with incomes ranging from less than £1m to more than £25m.
Only 6 per cent of responding charities had frozen recruitment of finance staff but only a quarter said the downturn had had no impact on their recruitment strategy.
Three in ten had employees redundant somewhere in the organisation in order to cut costs.
While 62 per cent of the charities said they had not employed cost-control measures that reduced staff numbers or hours worked, the rest had either cut jobs, hours or overtime to cope with the recession.
Improved retention rates and better candidates
The recession had brought some cheer along with the gloom, though – finance staff retention was improved and respondents reported a greater choice of high-calibre candidates available to fill finance posts.
Nearly two-thirds of respondents said they had no turnover of finance staff during 2009, and the average staff turnover among respondents who did have people leave was 23 per cent, down from 37 per cent in 2008.
However, results suggested that respondents found it difficult to distinguish between candidates who are working in the sector as a career choice and those who see it as a stop-gap. The report stated: “This is an area that people will focus in the near future, as training staff in sector-specific work may be seen as a wasted cost if candidates move on from the sector at the first sign of an upturn.”
In terms of benefits, at least 25 days paid holiday is the most commonly offered perk of working in the sector, but flexible working is of highest importance to employees.
The report concluded: “The most evident effect has been that the economic downturn has had a delayed impact on the charity sector, compared with the private sector. The impact was not fully felt until 2009, the delayed effect being a shock to some. Our 2008 survey told a very different story….with many forecasting a positive outlook.”
Future outlook
Looking ahead, 19 per cent expected no pay rise this year, up from 9 per cent last year, but issues such as redundancy, job security and end of contract were less influential than in 2008, suggesting that senior finance staff were more secure in their posts.
But just 28 per cent did not expect the downturn to affect their recruitment strategy in 2010.
