HR in the charity sector: insights from the front line

HR in the charity sector: insights from the front line in summary:

In this blog, we delve into HR practices within the charity sector, offering perspectives from professionals working directly in this field, including:

• Issues such as limited resources, diverse workforce needs, and the necessity of aligning HR strategies with the organisation’s mission and values are key challenges.
• Many charities adopt a professional approach to HR, with practitioners from organisations like the Samaritans and The Children’s Society being acknowledged for their contributions.
• HR professionals in the charity sector often find their roles stimulating and rewarding, offering opportunities for creativity and significant impact despite challenges.

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It’s probably fair to say that for many of us, there’s an unfair perception that in the charity sector pay will be below average, practices might be a bit outdated, and that budgets for HR initiatives will be tight.

Talk to people professionals working in the sector, however, and a very different picture emerges. To start with, not all charities are created equal. And, while there may be some that are struggling to move into the 21st century, there are many others with a highly professional approach, where innovative HR practices are taking place.

In the recent HR Most Influential Awards, for example, practitioners from charities including the Samaritans and The Children’s Society were recognised for their brilliant contributions to the profession. However, HR professionals working in this field often deal with challenging situations. These include such issues as allegations of mismanagement and misuse of funds, and the difficult issue of toxic working environments, which have tainted the reputation of some well-respected charitable organisations.

So, to get a real understanding of HR in the charity sector, we took the opportunity at a recent Cezanne User Group Meeting to chat informally to a range of people professionals from varying charitable backgrounds, about their experiences of working in the not-for-profit sector – and there was good news! The overwhelming consensus was that it can be a stimulating, fulfilling place to be.

The people related challenges are just as broad-reaching as those found in pretty much any workplace. But, the backdrop allows scope for creative approaches to industry-specific problems, and offers careers that have both depth and breadth.

Here’s our round-up of what they told us about the rewards of working in HR for charitable organisations – and the challenges practitioners are likely to have to grapple with when in-role:

The rewards

Making a difference

HR practitioners often end up in charity organisations because they’ve a connection or commitment to a particular cause. But, even if that’s not the case, working for a not-for-profit organisation can provide a deep sense of satisfaction and ‘giving back’.

By their very nature, charities are often filled with people who are passionate about what they do (although there are of course exceptions). The good thing about this? It tends to make for a values-driven culture and a satisfying place to work.

Work-life balance

Working for a third sector organisation certainly isn’t an easy ride. As in any other organisation, there’ll be deadlines to meet, heavy workloads and challenging times when it’s ‘all hands on deck’. Many not-for-profits do, however, value flexibility and work-life balance and don’t have quite the same 24/7, always-on culture often found in big corporates.

Broadening your experience

With most of the c170,000 registered charities in the UK having a turnover of less than half a million, many charities will have small HR teams or a stand-alone practitioner. This often means it’s possible to get involved in the full range of HR activities, from pay and reward through to performance and engagement – which is great for learning and building a wide portfolio of skills.

The Challenges 

Recruitment

Opinion was divided about overcoming the challenges of recruitment in the charity sector. Some HR practitioners we spoke to found it fairly easy to fill roles, with people who were passionate about their cause keen to get involved and make a contribution.

Others highlighted the difficulty, particularly with back-office roles like finance, legal or marketing, of having to compete for talented staff who could get much higher rates of pay elsewhere. The key, it seems, is to develop a creative approach which focuses on building employer brand and highlighting non-financial benefits like learning and development, the opportunity to make a real contribution from the very start, or the options for flexible working.

Post-Brexit & pandemic employment challenges

Whilst Brexit and the COVID-19 pandemic now seem like dim and distant memories, the repercussions – especially when it comes to employment within the charity sector – have been long lasting.

Net migration of EU citizens has been negative since the pandemic and under the post-Brexit immigration system, with immigration falling by almost 70% compared to its 2016 peak. As a result, charities who still rely heavily on employing EU nationals are worried about the ever-shrinking workforce, and are having to think hard about workforce planning. One practitioner also highlighted the lack of support they’re now experiencing due to EU fundings being phased out.

Resourcing priorities

With not-for-profits under the spotlight when it comes to the amount that is spent on overheads and admin, people pros can also find themselves having to work hard to justify expenditure on systems or people-related initiatives. Getting the message across that many of these initiatives are in fact highly cost effective and will deliver savings in the longer term can be a challenge.

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Commercial drive

Charities are increasingly finding themselves having to take a more commercial approach, with many now developing consultancy offerings or introducing charges for services that might previously have been free. This can often lead to unrest among employees, particularly if they feel this is counter to their values and undermines what they joined the organisation to do.

Charity HR folk often find themselves having to work hard to communicate and engage with staff, so that they understand the necessity for commerciality and buy in to the necessary changes.

Ethical issues

With a constant spotlight shone on how they operate, charities to be transparent about their policies and processes. It’s often a fine line in not-for-profit organisations in getting the right balance between staying consistent with the charity’s aims – and making sometimes difficult people-related decisions.

In an article for HR Magazine, for example, a charity sector professional describes the tension for a health charity in having to decide how much paid sick leave it should offer its own staff. Necessary restructuring programmes can also be difficult to implement in an ‘empathetic’ environment or where the charity’s aims are around issues like stress, mental health and employment.

One message that came out loud and clear from our conversations was the value of partnerships. Whether that’s working with suppliers to find cost-effective HR solutions that work well for charities, or joining forces with other voluntary sector organisations to share resources.

If you’re looking to expand your own horizons within the charity sector, The Small Charities Coalition, with its community of around 5000 members, is a good first port of call for practitioners who want to network and build relationships. And, CIPD members may find their local branch a good place to find colleagues already working in the charity sector who can provide further insights and advice.