More satisfaction for lower salary
The not-forprofit sector has much to offer chief executives, Ben Pike reports
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.