More sat­is­fac­tion for lower salary

The not-for­profit sec­tor has much to of­fer chief ex­ec­u­tives, Ben Pike re­ports

The Advertiser - Careers - - Front Page -

DE­SPITE the big di­vide be­tween the profit and not-for­profit ( NFP) sec­tors of the econ­omy, there are sig­nif­i­cant ad­van­tages for as­pir­ing chief ex­ec­u­tives who want to add an­other di­men­sion to their work.

While the abil­ity to man­age bud­gets and ne­go­ti­ate ef­fec­tively with stake­hold­ers is ap­pli­ca­ble to both sides, CBB Con­sult­ing gen­eral man­ager Wayne Turner says chief ex­ec­u­tives in NFPs have a unique set of chal­lenges.

‘‘ NFP chief ex­ec­u­tives have a closer re­la­tion­ship with their client base and are fo­cused on en­sur­ing they im­prove the sta­tus of their clients by im­prov­ing their ac­cess to fa­cil­i­ties and giv­ing them a bet­ter life­style,’’ he says.

‘‘ They are flex­i­ble and in­no­va­tive. There are re­sourc­ing is­sues and they need to make de­ci­sions with lim­ited re­sources, whether that be peo­ple or money.

‘‘ If you are mov­ing from profit to NFPs, you need to have those sorts of de­sires. Peo­ple who want to work in the area gen­er­ally de­cide to have a higher moral code or want to see the hu­man con­di­tion im­prove.’’

That code will need to be pretty strong be­cause, when it comes to salary, NFP chief ex­ec­u­tives are well be­hind their coun­ter­parts in main­stream busi­ness.

The CBB Ex­ec­u­tive Salary Sur­vey 2012 re­port on lead­ers in the NFP sec­tor, re­leased ear­lier this month, found chief ex­ec­u­tives earn­ing less than $80,000 a year were the largest pro­por­tion of re­spon­dents in 2012, or 39 per cent of those sur­veyed. The av­er­age ex­ec­u­tive salary in the main­stream is $120,000.

In the past three years of the sur­vey, those ex­pect­ing an in­crease in salary has dropped from 66.3 per cent in 2010 to 49.9 per cent in 2012. Of those ex­pect­ing a salary in­crease, 65.8 per cent are ex­pect­ing one only in line with the Con­sumer Price In­dex (about 3 per cent).

Community ser­vices, dis­abil­ity, ed­u­ca­tion and health­care were the four big­gest sec­tors sur­veyed.

Turner says the low salaries are due to more than a quar­ter of NFPs sur­veyed hav­ing an in­come less than $500,000.

The high­est pay­ing sec­tor is in­dige­nous ser­vices, which Turner says is likely linked to the re­mote lo­ca­tion of work sites.

CHAL­LENGE: Wayne Turner is gen­eral man­ager of CBB Con­sult­ing.

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