‘Third sector’ must improve pay to keep chief executives

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

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

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

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

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," she said.

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

Seven out of 10 voluntary sector chief executives do not have a specific
training budget and the median spend on chief executive training is only £600 a

The report claims that 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.

 By Paul Nelson

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