I assume we’ll have some author-identifying information in the hard version, as well as a real life experience he’s had changing the multiple paradigms he presented after 40 years in the system.
Howard Finck, former CEO
You also need to throw into the mix all those folks who not only get a low salary working for nonprofits but also have to raise it themselves. If they fall short, so does their paycheck.
Right on point and long overdue! In addition to the salary issues, let’s not forget the absence of clear cut policies and procedures that are often lacking at nonprofits,leaving employees defenseless against the worst of the hierarchal, command and control types.
Even in India, where I worked in the NGO sector, salaries are very low. During my job search here, I have realised that the disparity between private vis-a-vis non-profit sector salaries is really stark.
I agree with Maria that this problem, for individuals in nonprofit organizations, is directly related to the widespread lack of strong human resources policies at most nonprofit organizations. My current employer, a mid-sized foundation, is an example of an organization with these problems. I have been very proactive in advocating for increases in my own salary and have received repeated raises of more than ten percent per year. Some of my equally qualified coworkers have not received a review or a raise in years. As a grantmaker that sees salary information regularly, this problem seems to be very widespread in the nonprofit community. As mentioned in Mr. Warwick’s article, this behavior is often linked to keeping the salary budget low. Sector-wide, the problem seems to range from not knowing better to willful disregard in the area of fair compensation and fair human resources policies. It is unfortunate that many nonprofits do not invest more in their human capital, which is detrimental to the overall sustainability of the sector.
While the issue of low wages in non-profit sector is apparently systemic I don’t see it as simply a function of poor human resource management. Non-profits attempt to maximize the services and support they bring to their targeted beneficiary groups. This is most often done in an environment of limited financial resources even in generally well funded non-profits. Just like a government entity wanting to spend more on it’s programs each year non-profits seek to continue to expand the reach and breadth of thier work. Unfortunately they don’t have the ability to tax their constituents to continually increase revenue sources and are dependent upon donations, grants and increasingly new revenue enhancing models which also take more resources. So I see the compensation issue as part of the culture of the mission of non-profits working towards their philanthropic goals.
Managers and employees who make career decisions to work in the non-profit sector realize financial compensation is not competitive with the private sector going in. Most making this choice gain other more emotional benefits from knowing that they are performing a public good. If non-profit sector employees and managers were truely more concerned as a whole with total financial compensation then they would work systemically to address this issue. My view is they’d rather put thier energy towards the benefit of the groups their organizations are focused on serving.
Great. Spot on. It is heart warming to see this comment.
I subscribe to the view that the Pyramids were built by Social Entrepreneur NGOs. Why? Because the pyramids were built by Summer Interns. (An old Baffler headline)
I run a social entrepreneur organization. We say that we are not an NGO and not a Business. I pay people who work for me more than they can earn elsewhere. I have not got foundation grants from the persons who come and ask for my accounts. But they come because all admire our work and fiund it vastly innovative and agree that no one has delivered at our scale in Asia.
BYLilian James (not my real name for fear of retalia
Spot on! However, too little space was devoted to heirarchial, command type management and boards who could not care less about their employees. I work for a not for profit where the executive director routinely issues threats ranging from firing all of us to “taking his gun and going postal”, insults us to customers, name calling, changing job discriptions, interfering with our work with crazy assignments that serve no purpose, making us list personal feelings, altering routines, etc. He lunches with the chairman of the board several times a week. The only recourse open to us is a grievance system where he is the last word. He routinely breaks rules set forth in the employee handbook, such as cell phone use, carrying a concealed weapon, arriving late and leaving early daily. My wages are low for the duties I perform, by about 35%, compared to the private sector, but the real crime here is that we are in an incredibly hostile work environment.
COMMENTS
BY Howard Finck
ON November 30, 2006 01:44 PM
I assume we’ll have some author-identifying information in the hard version, as well as a real life experience he’s had changing the multiple paradigms he presented after 40 years in the system.
Howard Finck, former CEO
BY Lynn Maynard
ON November 30, 2006 01:50 PM
You also need to throw into the mix all those folks who not only get a low salary working for nonprofits but also have to raise it themselves. If they fall short, so does their paycheck.
BY Maria
ON November 30, 2006 04:30 PM
Right on point and long overdue! In addition to the salary issues, let’s not forget the absence of clear cut policies and procedures that are often lacking at nonprofits,leaving employees defenseless against the worst of the hierarchal, command and control types.
BY Meenakshi Bhatt
ON December 1, 2006 08:53 AM
Even in India, where I worked in the NGO sector, salaries are very low. During my job search here, I have realised that the disparity between private vis-a-vis non-profit sector salaries is really stark.
BY Sarah
ON January 23, 2007 09:13 PM
I agree with Maria that this problem, for individuals in nonprofit organizations, is directly related to the widespread lack of strong human resources policies at most nonprofit organizations. My current employer, a mid-sized foundation, is an example of an organization with these problems. I have been very proactive in advocating for increases in my own salary and have received repeated raises of more than ten percent per year. Some of my equally qualified coworkers have not received a review or a raise in years. As a grantmaker that sees salary information regularly, this problem seems to be very widespread in the nonprofit community. As mentioned in Mr. Warwick’s article, this behavior is often linked to keeping the salary budget low. Sector-wide, the problem seems to range from not knowing better to willful disregard in the area of fair compensation and fair human resources policies. It is unfortunate that many nonprofits do not invest more in their human capital, which is detrimental to the overall sustainability of the sector.
BY CBerolzheimer
ON February 10, 2007 06:36 PM
While the issue of low wages in non-profit sector is apparently systemic I don’t see it as simply a function of poor human resource management. Non-profits attempt to maximize the services and support they bring to their targeted beneficiary groups. This is most often done in an environment of limited financial resources even in generally well funded non-profits. Just like a government entity wanting to spend more on it’s programs each year non-profits seek to continue to expand the reach and breadth of thier work. Unfortunately they don’t have the ability to tax their constituents to continually increase revenue sources and are dependent upon donations, grants and increasingly new revenue enhancing models which also take more resources. So I see the compensation issue as part of the culture of the mission of non-profits working towards their philanthropic goals.
Managers and employees who make career decisions to work in the non-profit sector realize financial compensation is not competitive with the private sector going in. Most making this choice gain other more emotional benefits from knowing that they are performing a public good. If non-profit sector employees and managers were truely more concerned as a whole with total financial compensation then they would work systemically to address this issue. My view is they’d rather put thier energy towards the benefit of the groups their organizations are focused on serving.
BY Dr Darin Gunesekera
ON February 21, 2007 12:18 PM
Great. Spot on. It is heart warming to see this comment.
I subscribe to the view that the Pyramids were built by Social Entrepreneur NGOs. Why? Because the pyramids were built by Summer Interns. (An old Baffler headline)
I run a social entrepreneur organization. We say that we are not an NGO and not a Business. I pay people who work for me more than they can earn elsewhere. I have not got foundation grants from the persons who come and ask for my accounts. But they come because all admire our work and fiund it vastly innovative and agree that no one has delivered at our scale in Asia.
BY Lilian James (not my real name for fear of retalia
ON January 31, 2012 04:53 AM
Spot on! However, too little space was devoted to heirarchial, command type management and boards who could not care less about their employees. I work for a not for profit where the executive director routinely issues threats ranging from firing all of us to “taking his gun and going postal”, insults us to customers, name calling, changing job discriptions, interfering with our work with crazy assignments that serve no purpose, making us list personal feelings, altering routines, etc. He lunches with the chairman of the board several times a week. The only recourse open to us is a grievance system where he is the last word. He routinely breaks rules set forth in the employee handbook, such as cell phone use, carrying a concealed weapon, arriving late and leaving early daily. My wages are low for the duties I perform, by about 35%, compared to the private sector, but the real crime here is that we are in an incredibly hostile work environment.