Human Resources

June 2017

Employee Satisfaction Issues

With limited resources, recruiting and retaining top quality talent continues to be an obstacle for nonprofits—with compensation cited as the top employee satisfaction issue by survey participants (59 percent). Among HHS organizations, this number climbs to 68 percent. The second most-cited issue is benefits, reported by 43 percent of organizations across all sectors. Twenty-eight percent of organizations say that having a flexible work schedule is a top employee satisfaction issue. Meanwhile, nearly one-third (31 percent) of public charities report training and development as a top employee satisfaction issue.



Employee Compensation

Half of organizations report that, on average, their employee compensation levels grew by 3-4 percent last year. Another 27 percent grew their employee compensation by 1-2 percent, and 18 percent saw no change. No organizations increased compensation by more than 10 percent. 

Nearly one in four organizations with revenue over $25 million did not change compensation levels at all, compared to just 8 percent of smaller organizations. All the organizations that raised compensation levels from 7-10 percent had less than $25 million in revenue.
“People are at the heart of the nonprofit sector—and the data reflects that organizations deeply value their staff, leadership and board members. To maximize tightening budgets, it’s increasingly important to cultivate effective leadership at the board level and competent management to conduct operations.” 


Laurie De Armond
Partner and National Co-Leader, Nonprofit & Education Practice

Flexible Work Arrangements

With nearly one-quarter (28 percent) of organizations citing flexible work arrangements as a top employee satisfaction issue, it’s no surprise that 84 percent plan to offer some type of flexible work arrangement within the next two years.

Nearly three in four (70 percent) organizations plan to offer flexible work schedules to employees in the next 24 months. Thirty-eight percent of organizations plan to offer telecommuting options, and the same percentage plan to offer remote work arrangements.

Organizations with revenue under $25 million were more likely to offer flexible work schedules (79 percent) than those with revenue over $25 million (65 percent). Smaller nonprofits may be apt to have flexible work schedules as a tradeoff for lower levels of compensation. Additionally, smaller nonprofits tend to be less structured than larger organizations, which could allow for a wider variety of work arrangements.