Over half (56 per cent) of employees working in charities, social enterprises and not-for-profit organisations have left the sector in search of higher paid jobs in other industries, new research from Endsleigh reveals.
The Rewarding Industries 2023 report surveyed financial decisionakers across the third sector to analyse how organisations are responding to the challenges faced in today’s climate. It has revealed the extent to which talent recruitment and retention within third sector organisations have been impacted by the ongoing financial crisis.
In addition to the 56 per cent of workers who have already left the sector, business leaders fear there is more to come. Almost four in five of those surveyed (77 per cent) say their employees are tempted to look for a higher paid job in the next 12 months as many are struggling to cope financially.
But it’s not just retaining talent in the sector. Almost half (45 per cent) say it has been even more difficult to attract and recruit new talent into the industry, without being able to offer competitive salaries seen in the corporate space.
Embracing flexible working options and increasing salaries to attract and retain employees
Introducing more hybrid working practices was the most popular way that organisations are aiming to keep hold of passionate staff, with 39 per cent saying they now offer employees more flexibility with their location of work and working hours. A further 24 per cent say they have also reduced working hours to improve work-life balance.
As inflation and living costs remain high, almost half (42 per cent) of senior leaders say they are under increased pressure to improve salaries and financial remuneration. As a result, two in five (38 per cent) increased staff wages, 29 per cent increased pension contributions and 28 per cent introduced bonus schemes as a way to reward employees.
Providing more wellbeing support and going greener
Half of those surveyed (49 per cent) said pressure on staff mental health – also linked to the cost-of-living crisis – was a concern. As a result, a third (32 per cent) of third sector organisations have responded by introducing more wellbeing products to support staff with their mental health.
In addition, and perhaps in an attempt to improve their appeal to a younger, more diverse workforce, some organisations are focusing on their green credentials: 29 per cent had introduced new Net Zero ambitions and 20 per cent have become a B Corp.
Whilst there are a number of areas which the third sector is working on to improve its appeal as an employer, the research revealed that employee benefits are still far behind where they should be. Of those surveyed, less than one per cent say they had introduced or improved employee benefits, such as health insurance, cycle to work schemes or employee assistance programmes.
Alison Meckiffe, CEO, Endsleigh Insurance, said:
“It has been one of the most challenging years for the third sector, even more so now than during the height of the pandemic. Charities, social enterprises and not-for-profit organisations are finding themselves exposed to the cost-of-living crisis. The impact on talent recruitment, retention and wellbeing within the sector is of a huge concern.
“As a company that goes beyond the traditional insurance broking model, we work in partnership with our customers to help them better meet the needs of their service users and their employees.”
Original Article: HRnews
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