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WHY GETTING PAY AND BENEFITS RIGHT IS CRUCIAL FOR NGOs

Managing a workforce, especially compensation, presents significant challenges for many non-governmental organizations (NGOs). Unlike the private sector, many NGOs trail behind in having an established compensation philosophy and program. This gap hinders the ability of organizations to attract and retain the skilled staff necessary to achieve their mission, particularly in competitive labor markets like the United Kingdom (UK). 

Despite the desire to offer competitive pay and benefits, NGOs—particularly those reliant on government or donor funding—are under scrutiny to demonstrate good value. This kind of scrutiny requires responsible compensation management, not only for core jobs working in head offices but also for program staff operating in the field. Salaries must be set objectively based on the cost of labor rather than ad hoc or solely on the cost of living. 

To overcome this, NGOs must prioritize an integrated compensation approach. Competitive salaries and benefits packages help NGOs attract and retain skilled individuals passionate about their cause. 

This blog post explores the importance of equitable pay and benefits strategies that attract and retain talent, drive success, and maximize your NGO’s impact. 

The competitive NGO landscape

The UK’s NGO sector is highly competitive for talent. Skilled professionals, from program managers to fundraisers, have many organizations to choose from. NGOs must remain competitive, as these professionals are naturally drawn to organizations offering competitive compensation and benefits and demonstrating a strong alignment with their values. 

In this environment, NGOs can’t afford to lag. Pay equity and transparency are not just buzzwords but essential for recruitment and retention. Today’s workforce is increasingly aware of pay disparities and seeks employers who prioritize fair treatment and equal opportunities. Salary benchmarking plays a critical role in demonstrating this commitment. 

To attract and retain skilled talent, NGOs need to base compensation on the cost of labor in the market and benchmark against jobs of equivalent value. This approach ensures competitive salaries that reflect the true value employees bring to the organization. airness but motivates staff to develop their skills and contribute meaningfully. 

The significance of salary surveys

Salary surveys are invaluable for NGOs, ensuring they offer competitive and fair compensation. Such surveys provide objective, comprehensive data on market rates for comparable roles, enabling informed decisions about pay and benefits. Here is why they’re a helpful addition to your HR toolkit: 

  • Objective benchmarking. Salary surveys enable NGOs to compare their compensation packages against jobs of equivalent value in the market, ensuring competitive salaries that attract and retain talent. 
  • Defensible compensation. Data from salary surveys allows NGOs to justify salary decisions to staff, management, and donors, promoting transparency and accountability. 
  • Market insights. Salary surveys provide a broader market view than internal data, offering insights into emerging trends, regional variations, and sector-specific compensation. 
  • Gap analysis. Participating in salary surveys reveals areas where compensation may fall behind, including hiring rates, competitive salaries for specific grade levels, benefits, and more. 
  • Benefits competitiveness. Surveys like those from Birches Group often include data on benefits, allowing NGOs to assess their offerings and make necessary adjustments. 
  • Compliance with market practices. Using salary surveys helps NGOs align with sectoral standards and legal requirements. 
  • Proactive budgeting. Salary surveys help NGOs anticipate salary expenses and plan budgets effectively, ensuring financial sustainability. 
  • Trend analysis. Tracking salary data over time allows NGOs to stay ahead of changing market trends and adjust compensation strategies accordingly. 

Salary surveys provide a comprehensive and objective market view that your organization couldn’t easily obtain independently. They offer insights into gaps between your target position and the market, the competitiveness of your benefits, and adherence to best market practices. Salary surveys help you stay ahead of trends and assist with budgeting for your organization’s biggest expense—salaries. 

Final thoughts

In the NGO sector, getting pay and benefits right is paramount for attracting and retaining individuals who drive meaningful change. Prioritizing compensation allows teams to maximize their impact.

Take the first step: Assess your current compensation program, benchmark against sectoral standards using reliable salary surveys, and seek expert guidance. Birches Group provides NGOs with the most comprehensive compensation and benefits surveys dedicated to the development sector, including accurate and consistent job matching, salary data captured by grade level, and extensive benefits information.

We offer tailored compensation and benefits solutions to help your organization attract, retain, and empower talent worldwide. Contact your representative at Bond to learn how you can participate and access our surveys. Investing in your people is an investment in your mission, ensuring long-term sustainability and effectiveness in addressing critical social challenges.

Carla is a part-time copywriter on our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr.

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