Salaries in the Not-for-Profit Sector

I am currently interviewing for a management job in this sector. It will involve a move from the private sector where I have worked for over 6 years. I would be happy to move into this sector and I really like the organisation and the people that work there (which is extremely important to me).

However, I have been asked about salary expectations and didn't know how to answer the question. Would salaries be significantly lower in this sector? As in 10% or 20% lower or would they be only slightly lower than the private sector. I feel very uncomfortable answering this question. On the one hand, I would like to get the job and not let money be a factor where they would exclude me. However on the other hand, I do not want to pitch myself at too low a salary.

Any advice appreciated.

Hi bloody
I am not surprised you feel uncomfortable. Its very unfair to ask a candidate for salary expectations...they are trying to fill a position and must have some idea of the range of salary to be paid .

At what point in the recruitment stage are you-application stage, first interview, final interview. Your response will be determined by this. If you are only just applying I would ignore the question (if your qualifications, experience etc are right you will get an interview anyway). If you are at first interview I would turn the question back at them and say what range have they in mind. And if you are at final interview I would ask the same question, but you are much stronger. If they push you could mention a range of salary (say you expect between say 25-30k or whatever) and if they are not happy with that...well, do you want to work with these type of people (You could be a long time waiting for your next review!)
I appreciate you would like the job, but you cannot undersell your self either.
Good Luck

I have found that salaries in NFP are often quite generous. One such job I could not bring myself to apply for as I couldn't take that much money from a cause I cared about.

shesells said:

I have found that salaries in NFP are often quite generous. One such job I could not bring myself to apply for as I couldn't take that much money from a cause I cared about.

Click to expand...

I know of a similar story (albeit the person did take the job) were the salary was €15k above what this person was been offered for a similar role in the private sector. The NFP organisation in this case is a major charity.

Hi,

I am at final interview. In earlier interviews I discussed what I would expect if going for a job in the private sector and they did not completely balk at what I said. I will use your suggestion Mizen Head and throw the question back at them in terms of what the salary range they had in mind for the job was and use that if we come to the negotiation stage.

Thanks again!

have a look at EBS directors salaries - mutual society - all profits for members, but to ensure this, the directors must be well paid.

To ensure that your new employer does well, you should be paid the market rate for your sweat

I concur........Remember "Not for Profit" does not mean it is not a commercial organisation (e.g. the VHI claims it is "not for profit").
A NPF thus knows what the real world costs are so don't limit yourself unnecessarily. If you feel you can make a contribution over and above what you will take out of it financially, then you shouldn't be having any pangs of concience about expecting the market rate....

Hi again,

I have been offered the job with the charity I was interviewing for. I am delighted BUT the package is considerably lower than what I have been offered in the private sector (almost 20%), and without the benefits I am used to (Pension, good holiday allowance). It is also only a fixed term contract with the potential to renew.

I certainly plan to negotiate with them. I feel I was the strongest candidate as they came back to me very quickly with an offer so I am probably in a strong position. I plan to use the following reasons in my negotiation (will need extra €'s to put into my pension etc.)

What do you think?

I meant to ask above...

If I was not getting pension included in the offer what would be a reasonable amount of money to ask as extra so that I could set up my own pension. I'm 32 years of age and have been contributing to a pension for 6 years (in my last company).

Thanks

Well ... how long is a piece of string?


As I have said in other posts ... how much does the content of this job appeal to you ... do you think you will get a great buzz from working in it ... does it feel right to you? This should influence your decision greatly.


Having said all that ... and i am late with this advice ... the hr people in question should be offering at least your equivalent salary unless there are a lot of candidates with the required skills on the market.
Its bad policy in my oppinion to under offer candidates ... it just creates difficulty.

I would suggest calling the HR person in question (call the most senior HR person you met face to face ... hr admin sometimes dont have enough experience in these "money offer" siutations) ... and by they way ... call them ... dont email them .... its a delicate situation and emails can be taken up incorrectly ..... then explain to the hr person your situation ... that you are offering 20% less ... there's no pension etc .... its a contract role ... are possibility of permanency ? or any promotions etc?

Just be honest and gather the information from the hr person ... its good sometimes to have all the questions written down so that you know what you will ask when you are talking to the hr person.



Once an offer is made ... it is NEVER a done deal ... there's always time and room for some talk and sometimes negotiation ....


If the HR person says ... there's no room for money negotiation, no real prospects and its a contract role with no chance of permanency ... well then you can gather where you stand with that without being a genius ... you can take from that the type of culture involved in that company, the budgetary restraints and also how serious they are about the position, in that its a contract.
I'd also ask them why its a contract role....




As regards the whole money issue talked about earlier ... if you dont pay the money for the right person, some other organisation will get them and then the company (profit or non profit) will loose out.

So for example ... this current company might loose out on you because they havent offered that extra €10k or €20k ... and thus loose the right person for the job.


Look at it another way ... you may take the job but possibly will keep an eye on the paper for the next year because (a) you are on contract (b) you were offered below your current wages (c) you werent offered what you asked for .... its sowing the seeds of discord already.



It all still boils down to how much of a kick you will get off the job ... having said that you should be joing them with a smile on your face with them paying the market rate and the market benefits.

I'd call the most senior HR person you met and be honest with them and tell how you feel.

Watch out for job security issues. Some not-for-profit organisations are dependant on government or philanthropy bodies for funding. If policy changes, funding may go down the tubes too!

Best practice suggests they should be trying to match civil service scales. For management this should be AP or PO depending on the size of the organisation