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How non-profits can leverage their benefits package to compete for talent.

Although private companies often pay higher salaries, many non-profit employees benefit from more generous perks. Combined with the opportunity to make a difference, a strong benefits package can create a powerful tool for attracting and retaining talent. 

We draw on client data and wider industry insights to outline typical benefits in non-profits and how they compare to private businesses. Employers can use these comparisons to strengthen their employee value proposition and recruitment campaigns. 

Remote, hybrid and flexible working benefits 

Even before the pandemic, flexible and remote working was more common in non-profits than in private companies. Now, hybrid working is the norm, with most roles requiring an average two days in the office and fully-remote roles commonplace.

Charities lead the way with flexible and remote working. Almost 80% of employees are able to work remotely and 71% enjoy flexible hours, according to a recent survey, and is particularly valued by those with caring responsibilities or disabilities, helping to attract talent from a more diverse workforce. This aligns with the more proactive approach to equality, diversity, and inclusion, as highlighted by the CIPD

Since Covid, flexibility has also become a priority for younger professionals, who view hybrid working as the norm and appreciate the improved work-life balance it offers. 

The approach of non-profits contrasts sharply with the public sector, where flexibility varies widely depending on the size, maturity and type of business. Generally, we have seen a high-profile reversal of many flexible working policies and a growing trend, among companies of all sizes, to require their staff to work from the office more.

Pensions 

Non-profits provide competitive pension schemes, typically defined benefit (DB) or defined contribution (DC) schemes, which can offset lower salaries.  Universities offer some of the best pensions through the Universities Superannuation Scheme (USS) where employer contributions can reach 16-20%. 

Public sector pensions have long been considered generous, especially compared to many private firms. And, while final salary pensions ended in 2022 for public sector employees, the replacement career-average pensions remain highly attractive, with recent inflation widening the gap with the private sector. There is a lot of variation though: many large corporate and financial services firms offer competitive contributions, but the private sector average is much lower - 4.6% for men and 4.4% for women. 

Alongside flexibility, pension is the most important benefit for employees so highlighting favourable pension plans will help organisations appeal to candidates from other industries.

Annual Leave 

Annual leave is highly valued, especially among younger employees and parents. Universities offer some of the most generous packages, with additional closure days at Christmas and other times. This can mean annual leave allowances of up to 41 days per year. 

Sector Average annual leave including Bank Holidays
Universities  38
Housing Associations                                   38
Charities               35
Public Sector  36
Private Sector  28

Data source: Boston Hale client base, government department websites.

When compared to the private sector, the non-profit and public sectors come out on top, on average. In the private sector, employees typically start on 20 days plus bank holidays – 28 days - and increases are often tied to length of service and seniority. But again, there is a lot of variation. Smaller SMEs can’t afford to lavish generous annual leave allowances, larger businesses have more flexibility.  

One trend that has emerged in the UK and globally in recent years is unlimited holiday leave where employees can take time off and are measured on output rather than hours worked. It has been adopted by many tech companies and larger, global firms, with mixed results
Many large employers in the private sector offer flexible benefits - employees can flex up the benefits they most value, and flex down others that are less important. This allows people to choose benefits that suit their lifestyle or stage.  

Learning, Development, Career Progression 

Another important consideration for employees is access to and investment in their personal career development, whether it be through formal qualifications or internal courses. 

The ability to progress, develop, and learn is paramount when it comes to choosing a role or employer, especially with the finance sector undergoing such a fundamental transformation.

Boston Hale contractor

Our clients recognise the importance of self-development for their staff and advocate upskilling and promoting from within. They understand the value that investing in their staff can bring to their own organisation, plugging skills gaps and increasing staff retention.  

Many charities and housing associations provide access to funded courses, certifications, accreditations and personal development programmes. In addition to this universities are able to offer free, or heavily discounted, courses at their institution. 

Healthcare, Wellbeing, and Family Support 

When it comes to healthcare and wellbeing, the non-profit sector tend to offer more comprehensive programs as standard, including mental health support - a priority that has grown since the Covid pandemic.  
Enhanced benefits such as sick pay, maternity, paternity, and parental leave are also more consistently available and tend to be higher, in these sectors, often from the outset of employment. 

In the private sector, benefits can vary significantly. Larger organisations and senior roles often include private healthcare and enhanced leave policies, but smaller companies and lower-level positions are more likely to offer only statutory entitlements. As with other benefits, the private sector generally lacks the consistency found in non-profit and public sector roles. 

Leverage benefits for talent attraction 

Non-profits and public sector employers cannot always compete with salaries in the private sector, but their benefits packages often outperform it. For candidates assessing their total compensation, enhanced benefits can be a compelling reason to choose a role with a non-profit organisation. 

While some large corporates and financial services firms lead in monetary benefits, smaller businesses and start-ups have developed more innovative rewards and focus more heavily on wellbeing to compete for talent.

Non-profit employers who highlight their strong benefits offering can build a more attractive and competitive employer brand to help them succeed in their recruitment campaigns and win over talent from the private sector.

Contact Catherine Hegarty for a confidential discussion if you’re planning to hire or looking for a new opportunity.

For the latest data on salaries in Accountancy & Finance within non-profits and the public sector, take a look at our salary guide.

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