Charity sector still well down in the pay stakes

30 September 2009

The biggest gap is at the top, where chief executives receive an average of 21% less than their private sector counterparts, and overall the charity sector is still lagging behind when it comes to pay levels, according to new research.

The UK’s leading provider of workplace information and consultancy services has issued its Croner Reward survey of over 300 charities nationwide, representing over 50,000 staff.

This reveals that, although the comparative levels are still down, and particularly with regard to employees based in London, the pay gap is reducing, with the average difference across job roles and rank in 2009 standing at 10%, slightly less than in 2008.

Andrew Walker, Head of Reward, Croner, said: "Although charities have always been excellent at balancing the need for prudence with fairness in setting and managing pay, our survey shows the size of the shortfall against other sectors is slowly decreasing."

Despite the continued need for the sector to attract the best leaders, however, the biggest gap is felt by chief executives who receive an average of £70,706, 21% less than someone in a comparable post in the private sector could expect.

"While money is often not the prime motivator for employees in the charity sector," Mr Walker warns, "if organisations want to recruit and retain the best leaders then they need to find creative ways of showing that they are able to compete for talent."

"Charity Rewards", the 350-page survey, is priced at £360 (+P&P) or £310 (+P&P) for charities with a turnover of less than £1 million. It can be ordered by calling 01785 813566.