Why getting pay and benefits right is crucial for NGOs

Managing a workforce, especially their compensation, presents significant challenges for many NGOs.

Many NGOs trail behind the private sector when it comes to having an established compensation philosophy and programme. This gap can hinder the ability of organisations to attract and retain the skilled staff necessary to achieve their mission, particularly in competitive labour markets like the UK.

Despite the desire to offer competitive pay and benefits, NGOs – particularly those reliant on government or donor funding – are under scrutiny to demonstrate good value. This kind of scrutiny requires responsible compensation management, not only for core jobs working in head offices but also for programme staff operating on the ground. Salaries must be set objectively, based on the cost of labour rather than ad hoc or solely on the cost of living.

Taking an integrated approach to compensation is essential – one that combines competitive salaries with an attractive benefits package.

In the NGO sector, getting pay and benefits right is paramount for attracting and retaining individuals who drive meaningful change. Prioritising compensation allows teams to maximize their impact. But knowing how to do this in the right way can be challenging.

The competitive NGO landscape

The UK’s NGO sector is highly competitive for talent. Skilled professionals, from programme managers to fundraisers, have many organisations to choose from. NGOs must remain competitive, as these professionals are naturally drawn to organisations offering good pay and benefits and demonstrating a strong alignment with their values.

In this environment, NGOs can’t afford to lag. Pay equity and transparency are not just buzzwords but essential for recruitment and retention. Today’s workforce is increasingly aware of pay disparities and seeks employers who prioritise fair treatment and equal opportunities. Salary benchmarking plays a critical role in demonstrating this commitment.

To attract and retain skilled talent, NGOs need to base compensation on the cost of labour in the market and benchmark against jobs of equivalent value. This approach ensures competitive salaries which reflect the true value employees bring to the organisation, and it motivates staff to develop their skills and contribute meaningfully.

The significance of salary surveys

Salary surveys are invaluable for NGOs. Such surveys provide objective, comprehensive data on market rates for comparable roles, enabling you to stay ahead of trends and budget for your organisation’s biggest expense –staff costs.

Here’s why they’re a helpful addition to your HR toolkit:

Objective benchmarking: Salary surveys enable NGOs to compare their compensation packages against jobs of equivalent value in the market, ensuring competitive salaries that attract and retain talent.
Defensible compensation: Data from salary surveys allows NGOs to justify salary decisions to staff, management and donors, promoting transparency and accountability.
Market insights: Salary surveys provide a broader market view than internal data, offering insights into emerging trends, regional variations and sector-specific compensation.
Gap analysis: Participating in salary surveys reveals areas where compensation may fall behind, including hiring rates, competitive salaries for specific grade levels, benefits and more.
Benefits competitiveness: Surveys like those from Birches Group often include data on benefits, allowing NGOs to assess their offerings and make necessary adjustments.
Compliance with market practices: Using salary surveys helps NGOs align with sectoral standards and legal requirements.
Proactive budgeting: Salary surveys help NGOs anticipate salary expenses and plan budgets effectively, ensuring financial sustainability.
Trend analysis: Tracking salary data over time allows NGOs to stay ahead of changing market trends and adjust compensation strategies accordingly.

Getting started

You can take the first step to ensuring your organisation offers equitable pay and benefits by assessing your current compensation programme. Next, seek expert advice on how to benchmark against sectoral standards using reliable salary surveys.

Birches Group provides NGOs with the most comprehensive compensation and benefits surveys in the industry. We have surveys dedicated to the development sector which include accurate and consistent job matching, salary data captured by grade level and extensive benefits information.
We also offer tailored compensation and benefits solutions to help your organisation attract, retain and empower talent worldwide.

Contact your Bond representative to learn how you can participate and access our surveys.
Getting your compensation right requires investment. But investing in your people is an investment in your mission, and it will ensure your organisation has long-term sustainability and is effective in addressing the critical social challenges you are working on.