By Bill Gesaman, MNA Strategic Growth Officer
As we analyzed the data gathered in the 2019-2020 Compensation and Benefits Report, we were struck by a growing trend in the nonprofit sector: People desire new ways of working, and nonprofits are evolving to meet the needs of their employees while they serve the needs of their communities.
The Michigan Nonprofit Association’s Compensation and Benefits Report contains compiled data on more than 75 different positions commonly found in nonprofit organizations. The purpose of the study is to provide a comprehensive report on salaries and benefits paid to employees of 501(c)(3) nonprofit organizations throughout the state. The information in the salary survey is presented with the goal of assisting directors and board members in developing compensation plans that will result in successful recruitment and retention of employees.
The trend present in the latest report is the “YouEconomy,” which involves people creating their own unique careers through contract work, side gigs and other innovative ways to generate income. Their goal is to diversify their financial resources, decreasing dependency on one job while creating more flexibility to accommodate their personal lives. The percentage of nonprofits in this survey that are utilizing contract workers jumped significantly, from 7 percent in 2016 to 15 percent in 2018.
Nonprofits are putting a higher value on employees’ families and pay. Thirty percent of nonprofits offer 11 to 16 weeks of maternity paid time off, triple the percentage of just two years ago. The percentage of nonprofits offering paternity leave of 11 to 16 weeks is five times what it was in 2016, jumping from 5 percent to 25 percent. Overall, nonprofit pay increases have continued to grow, albeit slowly. In 2014 the average pay increase was 2.6 percent, in 2016 it was 2.77 percent, and in 2018 it was 3 percent. Nonprofits offering retirement plans jumped from 40 percent in 2010 to 67 percent in 2018.
The need for nonprofit employees is projected to grow in 2019. Forty-eight percent of respondents indicated they expect to hire more employees this year. Fifty-one percent plan to stay at the same staffing level, and only 1 percent plan to lay off employees in the coming year. Unique, adaptable and compelling workplaces will be key to enticing top talent to nonprofit organizations. While there are plenty of challenges to overcome in attracting and retaining talent, many positive trends indicate the growing value and adaptability of Michigan nonprofits and the people who drive them.
To purchase our 2019 Compensation & Benefit Report, visit here.