Typical pay rises of 1% are being planned by charities and many expect to cut staff numbers in 2010, according to research by EBRS, a pay and reward consultancy.
More than 200 charities were invited to complete a survey in early February examining their approach to pay rises and their plans for reward strategy in the year ahead. Key findings include:
- The median pay increase is expected to be 1% in 2010, which is identical to last year’s pay round.
- Charities are planning different approaches to pay, with some looking to freeze pay whilst others expect to make average increases of as much as 3%.
A quarter expect staff numbers to rise this year, but worryingly 19% think that numbers will fall, largely due to reductions in funding and the need to cut overheads. Over half of participants plan to make their pay decision by the end of March, against the backdrop of organisational change and economic uncertainty.
Difficult decisions ahead
Karl Ellis, Director of EBRS, comments: ”For many charities, what had looked to be a straightforward decision to apply a pay freeze has been complicated by recent increases in inflation. They now need to balance budgetary considerations against the need to keeping up with pay market. This will be crucial if they are to be able to recruit and retain high performers during the year ahead.”
He continues: ”The uncertain economic climate has made it tricky to benchmark pay accurately. Many organisations froze pay last year and are reluctant to repeat this in 2010. Conversely, those that awarded modest rises in 2009 now need to think carefully before freezing pay.”
About the survey
34 organisations participated in the survey in early February 2010, representing a cross section of the charity sector.
The 21-page report is available for purchase from EBRS for just £60 plus VAT. To order a copy, please email admin@ebrs.co.uk or telephone 01454 501686.
For further information contact:
Karl Ellis, Director, Essential Benchmarking & Reward Solutions Limited
Tel: 01454 501686 | karl.ellis@ebrs.co.uk | http:/ www.ebrs.co.uk/
Sender Name: Karl Ellis
Sender E-mail: karl.ellis@ebrs.co.uk
