‘Third sector’ must improve pay levels

Voluntary sector organisations have been warned they need to improve pay and
working conditions to retain top managers.

A survey by the Association of Chief Executives of Voluntary Organisations
shows there is a 23 per cent difference between the average salary for
voluntary sector chief executives and their counterparts in the private sector.

Chief executives in the voluntary sector earn £47,675 a year compared to
those in the private sector who are on £65,914 a year.

Stephen Bubb, chief executive of the ACEVO, said, "We are not demanding
fat-cat salaries but unless the third sector pays professional salaries for
professionals, it will always have difficulty in recruiting and retaining
staff."

Gill Lucas, head of public and voluntary sector at KPMG’s search and
selection – which sponsored the survey, agrees.

"Voluntary sector pay needs to move towards a fairer and more flexible
future if it is to retain the talent of its top managers."

The survey also calls on voluntary sector organisations to improve their HR
structure.

Seven out of 10 voluntary sector chief executives do not have a specific
training budget and the median spend on their training is just £600 a year.

The report claims a third of chief executives invest their own money in
their professional training and development.

Nearly 80 per cent of voluntary organisations do not have work-life balance
policies and over a third have no formal appraisal system. Fewer than one in 10
chief executives receive a bonus.

The report polled 419 chief executives.

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