Nonprofits Expect to Increase Employee Pay in 2012
March 18, 2012 | Read Time: 2 minutes
Many nonprofit organizations plan this year to restore salaries and jobs they cut during the economic downturn, according to a group of five new studies of nonprofits.
The recruitment firm Professionals for NonProfits said its studies, which drew data from nearly 2,000 nonprofit groups, revealed a growing sense of optimism among the organizations about employee hiring and pay.
The surveys, which focused on groups in the areas of Baltimore, New York, Philadelphia, Washington, and New Jersey, found that most of the organizations didn’t hire or lay off staff members last year. A majority in New York and Washington plan to hire in 2012, while about 40 percent in the other regions said the same.
Organizations in the surveys said they see 2012 as a year of growth, with many voicing a desire to add positions in fundraising, management, and administration, as well as education and project management.
‘The Worst Is Over’
Many nonprofit employers said they need specialized fundraisers who know how to seek big gifts, corporate money, and foundation grants and to run special events, rather than hiring generalists. Many also voiced a desire to recruit people with social-media expertise to help with fundraising and promoting nonprofit causes.
“Everybody’s sort of cautiously optimistic,” said Gayle Brandel, president of Professionals for NonProfits. “The worst is over. We’re going into 2012 with great needs to hire people because there were a lot of layoffs” during the downturn.
She added, however, that many organizations said they wouldn’t simply add workers in hopes of restoring their organizations to the staffing levels they had before the recession. Instead, many learned from the economic hardship that it’s important to grow cautiously and focus on improving the efficiency of their operations.
Nonprofit managers said a priority in the coming year is to build stronger boards and work on succession plans that will provide continuity through future staff changes.
The surveys collected information about salary ranges for 31 positions at nonprofit organizations of various budget sizes in all of the areas studied. Some of the research’s key findings:
- Signs were promising for pay raises in 2012, with 63 percent of New York nonprofits saying they expect to hike staff salaries; 57 percent of Washington groups reported the same.
- The hiring outlook was also sunny, especially in New York, with 69 percent of groups in that area planning to add people to work on programs this year, and 58 percent planning to hire fundraisers.
- Seventy-one percent of organizations surveyed in New York said they plan to expand programs and services this year, while 60 percent in Washington plan to do the same.
- Eleven percent of groups surveyed in Washington added employees last year, while in New York 17 percent did.
- Seventy-one percent of organizations in Washington increased their workers’ salaries in 2011 by 1 to 3 percent. In New York, 59 percent increased salaries by that amount.
The survey reports for Baltimore, New Jersey, New York, Philadelphia, and Washington are available free on the Web site of Professionals for NonProfits. Go to: nonprofitstaffing.com.