Lower Pay in the Not for Profit Sector: Perception or Reality?

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There is a long-held perception in New Zealand that pay rates within the Not for Profit (NfP) sector are not as generous as those available in other sectors. Pay increases are also thought to be less competitive. It is generally thought that this “practice” flows from a preference by organisations within the sector to direct funding towards the delivery of services rather than to the recruitment and retention of staff on competitive pay. This article drills into the results from MHR’s March 2024 pay survey to establish whether there is any truth in these perceptions.

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Managing pay increase expectations is a challenge

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In this quasi post-Covid period, with many employers still grappling with the challenges of operating in a widely changing employment environment, we have seen a regular appearance of media articles encouraging employees to seek new roles outside their current employer. The implied suggestion is that this is the only way in which employees can expect to get any reasonable increase in remuneration. Employers will need to manage the expectations created by this discussion.

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Are pay rises on their way back?

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In the past 18 months COVID-19 has become something of an ever-present factor in all aspects of life in New Zealand and globally. The question many employers are now facing is whether to continue policies which were designed to cope with reduced income and funding, or are we now at the point where the constraints imposed by Covid-19 need to be lifted. MHR Global’s latest survey of pay rates may have an answer.

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Covid-19 Impact on Pay Levels is limited. . . so far

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There is widespread recognition that Covid-19 has posed substantial challenges in both the public health and economic arenas. At least part of that economic challenge is focussed on employment and employee management, with many employers taking difficult employment decisions to cope with lower income and funding. We examine these perceptions in the light of the latest MHR Global salary survey results.

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