Third sector salaries in 2007

The Workforce Hub has just published the main findings from the 19th Annual Voluntary Sector Salary Survey. Its makes interesting reading which will be of particular interest to those responsible for human resources and financial management (including business planning and financial forecasting).

The Salary Survey found that average salaries and earnings in the voluntary sector each increased by 3.7%, a higher rate than the Average Earnings Index of 3.0%, but below the Retail Price Index of 4.3%. The increases are slightly lower than twelve months ago when both increased by 4.9%.

The Salary Survey found that 62% of organisations had experienced problems with staff recruitment in 2007: an increase of almost 10 percentage points from last year. The main reasons behind these difficulties were a lack of suitably trained applicants and the salary levels available. Likewise problems with staff retention were more widely reported as was an increase in staff turnover.

2008 may be the year when the squeeze on public finances impacts more radically on salaries in the third sector as well as the public sector.