Insecurity with funding was the top concern keeping Australian not-for-profit executives up at night last year, according to a new report.
The Attraction and Retention: Not For Profit Executives report, released by South Australian consultancy Community Business Bureau (CBB), said it was not surprising that funding insecurity was the top issue, given government funding typically made up about 90% of a not-for-profit organisation's budget.
"The NFP sector is seeing a change in the way in which funding is applied, and many organisations may see their reliance on government funding threatened," the report said.
"It may be wise for NFPs to explore alternative avenues of funding and business sustainability."
Retaining high performing employees was the second highest concern in 2013 (cited by 40% of respondents), while 37% worried about attracting suitably qualified employees. The report noted that the latter concern had steadily declined, after peaking at 49% in 2010.
Similarly, the third most concerning area - enhancing workplace culture - had also declined, from 45% in 2010 to 31% in 2013.
The report found that putting in place flexible working hours was the most favoured retention strategy in the sector.
Some 68% of not-for-profit organisations had flexible working hours in place, closely followed by professional development opportunities (56%) and building a positive culture (55%).
CBB chief executive Michael Dawson said this was largely because not-for-profits had fewer financial resources than their business counterparts.
"Not-for-profit executives are constantly faced with the challenge of keeping their wages bill under control whilst retaining good workers, which is why non-financial strategies such as flexible working hours are so important," he said.
"Many talented employees are happy to accept a lower salary if it means they have the flexibility to meet personal commitments."
But if you are looking for a higher salary, you may need to move to the Northern Territory. The report found CEOs earned an average of $136,000 per annum in the Territory in 2013, followed by Western Australia ($134,000) and Victoria ($108,000).
Mr Dawson said it was important to note that salary packaging meant a not-for-profit executive earning $100,000 per annum could take home $6000 more each year than a comparable private sector executive.
"This ... means not-for-profits can still be very competitive on the jobs market," he said.
The report found that CEOs and executives in foundations, government agencies, business support, advocacy and aged care organisations earned the most, while those in religious services, community services and youth sectors earned the least.
Average salary ranges increased in line with levels of formal qualifications, it found.
The survey received 534 responses from Australian not-for-profit executives.
