March 22, 2007 | Read Time: 2 minutes
More New York charities are tying pay to an employee’s performance, and a majority of the nonprofit groups
plan to expand the sizes of their staffs this year, according to a new survey of salaries paid by nonprofit employers in the New York City region.
The survey of 540 groups, conducted by Professionals for NonProfits, a recruiter for nonprofit organizations in New York and Washington, found that 71 percent of organizations gave merit-based raises in 2006, compared with 64 percent the previous year.
“The steady rise in merit increases is a result of a very competitive marketplace for really good talent,” says Gayle A. Brandel, president of Professionals for NonProfits. “The trend is toward organizations’ rewarding a job well done. They are giving more to top performers so they can attract and retain good staff.”
89% Give Raises
The survey found that 89 percent of nonprofit groups awarded salary increases to their staff members in 2006. Sixty-two percent said they gave raises in the 3.9-percent to 5-percent range in 2006, which would allow employees to keep pace with the nation’s 3.2-percent inflation rate that year.
In a similar survey of nonprofit employees in the Washington metropolitan area, Professionals for NonProfits found that 55 percent of organizations last year awarded raises in the range of 3.1 percent to 5 percent (The Chronicle, February 22).
“I’m always somewhat surprised that salaries really don’t go up substantially,” Ms. Brandel says. “Most people in the sector are doing well, but they certainly are not getting rich.”
Hiring Plans
When asked to project their hiring plans for 2007, 57 percent of nonprofit groups in New York City said they intend to increase the size of their staffs, while only 2 percent expect to reduce the number of people they employ. Twenty-two percent of respondents said they were undecided about additional hiring this year, while 19 percent anticipated maintaining current staffing levels.
An estimated 60 percent of the projected hiring will be people to carry out nonprofit programs, said the employers, while the remaining 40 percent of new employees will be involved in fund raising.
Nonprofit groups are also offering steady increases in an array of benefits to attract and retain talented workers, says Ms. Brandel. Case in point: 43 percent of organizations offered flexible work schedules, while 37 percent gave employees additional insurance coverage, and 32 percent gave cash bonuses.
The survey is based on data from arts and cultural groups, associations, educational institutions, and health-care and social-service charities.
A report on the 2006 New York compensation survey is available free on the Professionals for NonProfits Web site. For a copy of the report, go to: http://nonprofitstaffing.com.
