This report of 11 case studies accompanies the other pay and benefits research that has been commissioned by The Community Foundation for Ireland to assist organisations in the sector with the development of effective pay and pay-related policies and practices, through the sharing of information and experience. As part of that remit, this series of case studies explores the remuneration challenges facing non-profit organisations, along with the ways the sector has addressed those challenges, in what can be described as ‘post-recessionary’ times. Interviews were conducted in 11 organisations, which were chosen randomly to represent different size organisations, different activities and different locations.
- During the recession the Irish non-profit sector experienced huge losses in terms of funding and staffing.
- The average funding loss was 35%- 40% with a staffing drop of 31%, according to research carried out by Brian Harvey.
- While we are seeing the overall Irish economy reaching full employment, this has led to increased competition for labour leaving the non-profit sector experiencing difficulty in terms of holding onto their staff in a sector that traditionally pays less than the private and public sectors, and relies heavily on employee commitment.
- There has been much anecdotal evidence that, while some organisations are getting back on track, others are continuing to experience problems and challenges.
Pay Developments
All the organisations in the study had pay and/or pay increments frozen during recessionary times. With regard to pay increases since the recession (2015 onwards), organisations responded in different ways, with increases ranging from 0% in four of the participating organisations to 25% over four years in one of the participating organisations.
- Three organisations had given two increases since the recession, two had given three increases and one had given one increase in the last three to four years.
Challenges
The case studies highlighted a number of on-going challenges within the sector, some of which have been known for some time and were referred to as far back as the 2000 Government White Paper (White Paper on Framework for Supporting Voluntary Activity and for Developing the Relationship between the State and the Community and Voluntary Sector, 2000). The on-going challenges include;
- Uncertain and insufficient funding, including complexity of funding arrangements and no funding provided for the running of the organisation;
- The need for HR staff, advice and representation;
- Pay restoration- which in some cases has still not been restored since pay freezes came into effect during the recessionary period;
- Staff welfare;
- Retaining and attracting staff;
- Pension cost.
Tina Roche, CEO, The Community Foundation for Ireland on the launch of the report:
“We felt it was very important to continue our work regarding pay, benefits and remuneration in the non-profit sector to highlight the differences and discrepancies within the community and voluntary sector compared with other industries.
It is extremely important for the public and especially the donors we work with that the community and voluntary sector is open and honest and adheres to the highest standard of governance. Trust in the sector has taken a hit in recent years and it is only through open and transparent reports like this that we can begin to build upon that trust once again.”
To download the full report or any of the other Pay and Benefits Reports click here.