U.K. Charity sector pay 18% below the private sector

blog-publish-date

19 Sep 2011

blog-read-duration

One in six charities imposed a pay freeze in the last 12 months London, 15 September 2011 – Charity sector pay is still as much as 18% below the private sector nationally and up to 16% in London, according to research by Croner. The Croner Reward survey of more than 260 charities nationwide, representing over 47,000 staff, finds that despite the continued need for the sector to attract the best leaders, the biggest gap is with chief executives who receive an average of £73,917, or 18% less than their counterparts in the private sector. Other directors receive an average of £65,054, which is 14% less than the private sector. There is some good news though, as this shortfall has reduced slightly (0.5%) since last year. London-based charities are paying well below the London all-sector average at director and chief executive level by 12% and 16% respectively. Across the different charities, those in the information/advice sector are paid the most, receiving 4% more than the charity average. Social welfare charities have the lowest pay, averaging almost 8% below the rest of the sector. The economic climate continues to have an effect on pay: 16% of charities implemented a pay freeze in the last 12 months. For those that did give staff pay rises, these averaged 2.5%. Looking ahead, charities expect current economic problems to have some effect on pay rises with pay review forecasts of 2% in the coming year, which is behind the commercial sector forecast of 2.5%. Viv Copeland, Head of Reward at Croner, says: "This year's survey results reflect the continuing difficult times we're working in. Many charities, like private sector organisations, are reporting redundancies or other plans to reduce staff numbers. Others are trying to hold onto skilled staff by reducing salaries or hours. Employers and job seekers alike will need to be realistic and flexible about their pay and benefits packages." Richard Evans, Chief Executive of Charity and Fundraising Appointments, says: "From our day-to-day dealings with charities as our clients and contacts, we know that the greatest anxiety remains the recruitment and retention of fundraisers, fundraising managers and fundraising/development/appeals director. In addition our clients are expecting more from directors of finance/resources both in terms of their contributions at the strategic level and in the range of functions grouped together in this role." Charity Rewards, the 350-page survey published September 2011 by Croner Reward, is priced at £360 (+P&P) or £310 (+P&P) for charities with a turnover of less than £1m - a fraction of the cost of replacing just one member of staff. The survey can be ordered by calling 01785 813566. All orders received before 14:30 will be dispatched the same day. Notes to editors The latest edition of Charity Rewards contains data collected in April 2011 which has been provided by 268 charities, representing 47,226 staff. If you're interested in further pay and benefits benchmarking information, you can read more about our salary surveys here.

Free to Download Employer Resources

  • How to make reasonable adjustments for mental health in the workplace

    FREE DOWNLOAD

    How to make reasonable adjustments fo...

    Read more
  • Sample Health & Safety Communication and Consultation Policy

    FREE DOWNLOAD

    Sample Health & Safety Communication ...

    Download Croner's sample health & safety communication and consultation policy, here.

    Read more
  • Adverse Weather Policy

    FREE DOWNLOAD

    Adverse Weather Policy

    Here we’ve included a free sample adverse weather policy that UK business owners can refer to...

    Read more
  • World Religion Day: Your Employees' Rights at Work

    BLOG

    World Religion Day: Your Employees' R...

    Each year, thousands of businesses call Croner for advice on sensitive issues in...

    Read more
  • Conducting an Equal Pay Audit

    BLOG

    Conducting an Equal Pay Audit

    The equal pay act sets provisions for organisations to follow the same pay syste...

    Read more
  • Health & Safety Changes to Look Out For in 2019

    BLOG

    Health & Safety Changes to Look Out F...

    The news at the start of this year has been dominated by Brexit and its potentia...

    Read more
  • Solicitors Benevolent Association

    CASE STUDY

    Solicitors Benevolent Association

    “The reason for using Croner was the high-profile track record and the credibili

    Read more
  • John Taylor Hospice

    CASE STUDY

    John Taylor Hospice

    “A large number of the queries are around employment law and rights in areas suc

    Read more
  • Motorsport Industry Association

    CASE STUDY

    Motorsport Industry Association

    “I’m so happy with the service Croner provide, I’d be hard pressed to find a fau

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.