Nonprofit Salaries – A topic every NFP and charity Board of Directors struggles with, and perhaps now, post-pandemic, more than ever. The Great Resignation, and the rise in the cost of living/inflation rates are unprecedented, unplanned challenges which need to be tackled yesterday – or staff can easily move on. See 2022 Canadian and US not for profit salaries below.
Accustomed to increases that have remained low, and for those with the capacity to do so, have stayed close to the 3% level for many years. However, salary increases are on the rise and of great concern to the not for profit sector.
Bottom line ?
Talent Shortage = Salary Increases
How to compete?
A. Salaries need to increase wherever required. It’s about equity, ethics and appropriate pay for all in the NFP/Charity sector. Stay optimistic, while conducting a realistic assessment of factors which need to be included in your determination of appropriate salaries for your agency. These include your location, size, type or niche, responsibilities of each position as well as its required qualifications and experience. The following are core nonprofit employee positions that are generally required for growth, development and overall success of any nonprofit. 2022 salary levels for the US and Canada are listed. (1)
Explore and get creative in order to align your agency’s salary grid to the above. This may mean it’s time to get serious about Social Enterprise and collaboration. Do so in a manner that messages to all, that this is about ensuring Clients are able to receive the services and programs they need.
B. Support your employees. Can you provide enhanced travel expenses/a mileage increase? Gas cards? Bus passes? Gift cards for food and department stores? Flex-time? A modified work week? WFH options? Your finance lead can explore the impact of new incentives to the agency and employees.
What are the mission-critical positions and who are your top performers? Are their contributions reflected in salaries? How can you increase lower-wage earners’ salaries? They are highly impacted by inflation and easily tempted to move on to another employer for a dollar an hour more. This can mean making rent and buying their kids shoes.
All enhancements that contribute to retention must be explored.