2013 | Not-for-Profit Sentiment Study · Australia’s vital NFP sector, analysing the sentiments...

2013 | Not-for-Profit Sentiment Study

Key Insights and Summary Report

PAGE 01 | JUNE 2013

Maxxia Workplace Insights

Maxxia Workplace Insights: a new research initiative

Maxxia, as part of the McMillan Shakespeare Group, has been a trusted workplace benefit services partner for more than 20 years, supporting many prominent NFP health, aged care and charity organisations, in effectively maximising their employees’ take home pay. As such, we take an active interest in the sector and are keen to gain greater insights into the needs, attitudes and behaviours of its people.

This Maxxia Workplace Insights study focuses on the topic of engagement within Australia’s vital NFP sector, analysing the sentiments and intentions of those who work in it and those that employ them. Importantly, our study has also canvassed the broader Australian workforce, enabling a like-for-like comparison with the NFP sector.

As attraction and retention of employees becomes a greater challenge in the NFP sector, this study highlights the similarities and differences in perceptions between

employer and employees on the attitudes, motivations and challenges of the sector’s workforce.

We believe this is the first comprehensive research initiative of its type across employee engagement and related indicators for the NFP sector.

Of all the sectors that make up our community, it’s safe to say the NFP sector makes an enormous contribution to our society through its delivery of a diverse range of benevolent and related community services that make such a difference to the lives of so many. This is often undertaken within challenging environments with limited resources and through the efforts of employees who, by necessity, generally work for lower financial remuneration than what they might otherwise earn in other sectors.

By commissioning and making this research available, we at Maxxia trust the research findings and the insights provide

information that can assist in the long-term sustainability and employee attraction of the sector.

I hope you find our inaugural Maxxia Workplace Insights report of value, and we look forward to furthering our contribution to Australia’s NFP sector.

Michael Kay, Chief Executive Officer and Managing Director

“ ...we believe this is the first comprehensive research initiative of its type across employee engagement and related indicators for the NFP sector. ”

I’m delighted to welcome you to this inaugural edition of Maxxia Workplace Insights, a research initiative to support the diverse not-for-profit (NFP) sector.

PAGE 02 | JUNE 2013

Key insights arising - at a glance

Maxxia Workplace Insights has delivered a number of findings that NFP leaders, NFP HR managers and recruitment staff may find of value in attracting and retaining employees.


In summary the study:1. Explored why employees are attracted

to NFPs and their reasons for departing the sector. Skills, qualifications and career development were found to be more important to employees than NFP HR leaders perceive, and the quality of management and other factors are greater drivers for employees contemplating leaving than may be perceived by NFP leaders.

2. Found three key drivers of employees’ intentions to stay. It compared the NFP sector with the total workforce in the retention of management level

employees, and found overall, that NFP managers are more likely than their total workforce counterparts to consider leaving their organisation.

3. Found that larger NFPs, and in particular those employing 250 or more people, were perceived as becoming corporatised, leaving them at risk of reducing their appeal with employees. Accordingly, as NFP organisations grow the study identifies key attributes for consideration in preserving and meeting employee expectations.

4. Found that NFP employees as a whole are happier and more satisfied with

their employer compared with their total workforce counterparts. The study identified the key drivers of employer and job satisfaction for NFP employees as their: • working environment; • sense of achievement and belonging;

and • level of enjoyment and recognition.

5. Indentified a possible enhanced recruitment model for NFPs based on a profile of the demographics of those in the community that are most disposed towards a meaningful job or career in the sector – the over-55s, women, and part-timers.

PAGE 03 | JUNE 2013


Insight one:

Attraction and departure perception gap

Maxxia’s research highlights that attracting and retaining staff is one of the most significant challenges for NFPs. Of the 200 NFP HR managers who participated in Maxxia’s study, almost half (45%) agreed that finding and keeping good staff is their greatest challenge, followed by a lack of funding (11%) and finding and keeping suitable managers (9%).

Figure 1 - Key challenges facing NFP HR leaders

It therefore is important for NFP leaders, and others responsible for attracting and retaining employees, to understand what attracts people to the sector, as well as what drives them away.

In addressing these issues, Maxxia’s research shows a difference between the drivers NFP employees most frequently give

The study provides insights into why employees are attracted to NFPs and their reasons for departing the sector.

for entering and exiting the sector, and NFP HR managers’ perceptions of why they do so.

Whilst poor career progression opportunities are cited as the prime driver from both NFP employees and HR managers alike for employees considering leaving the sector (34% and 38% respectively), the study identified a broader range of contributing factors.

To illustrate, of the top five reasons provided for wanting to leave the sector, only two (poor career progression and low wages) are given similar weighting by both NFP employees and HR managers.

Figure 2 - Top five reasons employees consider leaving NFPs

This analysis indicates an opportunity for NFP HR managers to further delve into what employees regard as important workplace concerns.

Lack of funds

11%

Funding/keeping suitable managers

9%

Better pay and conditions to attract staff

8%

Finding/keeping good staff

45%

Managing staff morale

8%

Dealing with government/legislative changes

6%

Continued education/professional development

4%

0 10 20 30 40 50

Managing growth/restructure4%

0 10 20 30 40

Poor career progression34%

38%

Low wages31%

17%

Poor management30%

4%

Poor morale

2%

26%

Too much stress25%

6%

% NFP employees % HR managers


PAGE 04 | JUNE 2013

Foremost, the difference between the percentage of NFP staff and HR leaders who state the quality of management as a key factor behind attrition is important for managers. It suggests there may be an opportunity for some NFP organisations to implement more inclusive and responsive people engagement strategies.

Such strategies may already be in place and simply require more effective communications to help close the gap between employees’ perceptions and what the organisation is actually doing. It further suggests there may be an opportunity for other managers to enhance engagement with their employees to understand where improvements in management performance could be made.

Similarly, the perception gap between NFP employees and HR managers that attributes a desire to depart the sector to poor morale and too much stress identifies potential areas of increased attention for managers and leaders of people in the sector.

Comparing NFP workers with the broader workforce as to their reasons for considering leaving an organisation, confirms that while such triggers are largely the same for all workers, the top five reasons are in part amplified among NFP employees. This is especially the case among employees who cite the quality of management as a trigger for leaving, with 6% more NFP employees than the total workforce listing this as a reason for considering leaving.

Why employees choose a sectorMaxxia’s research confirms that employees primarily choose to work for NFPs because it satisfies two important motivations:• “Using my skills and qualifications”; and• “Positively impacting people’s lives”.

These career decisions reflect these employees’ desire to employ their capability and compassion, together with their head and their heart.

In particular, the research confirms that a desire to make a difference to other people’s lives is a significant factor in attracting labour to the sector.

Whilst not unexpected, such altruism appears to be unique to the NFP sector when compared with the total workforce as illustrated in Figure 3.

Figure 3 - Reasons workers say they choose a sector

27%

56%

Positive impact Qualifications Level of pay

Sense of belonging

47%

54%

25%

10%

28%

29%

35%

28%

11%

20%

Variety of work Stability

The importance to employees of using their abilities and skills to contributeThe analysis of HR managers’ perceptions of why employees choose to work in the NFP sector suggests that there may be an under-appreciation of the workplace hygiene factors the NFP sector has to offer.

To illustrate, HR managers appear to place less emphasis than NFP employees on the importance of the skills set employees desire to bring to the table and the sector.

Some 5% of NFP HR managers cited having the relevant skills and qualifications as a factor in employees joining the sector, compared to 54% of NFP employees who say this is a primary reason.

Prima facie it appears NFP employees are not relegating their ‘skills and qualifications’ to pursue their chosen vocation, rather they wish to use these skills and qualifications to impact the lives of others. This is a powerful proposition for a significant group of employees in the community.

NFP employees also appear to place a premium on the variety of the work the sector offers with 29% saying this was a factor

% NFP employees % Total workforce

PAGE 05 | JUNE 2013


Insight one continued:

Attraction and departure perception gap

Potential management actions➜ Continue to invest in people leadership skill development

for managers.

➜ Recognise the importance of skills, qualifications and career development (‘hygiene factors’) to candidates to assist in attracting and developing employees.

➜ Clearly articulate professional and career development opportunities provided, and incorporate access to external training and development options as evidence of commitment to professional and career development.

➜ Monitor indicators of human resource performance – including employee engagement, morale, supervisor performance and employee intentions to leave, and communicate with employees the organisation’s actions in response to issues identified.

in their decision to join, whilst this was not cited by NFP HR managers.

Other differences between NFP HR managers and employees included: • availability of flexible working hours; • work/life balance; • perceived employment stability; • intellectual stimulation of a NFP career.

This analysis of what draws employees to the sector may assist NFP HR managers to enhance existing strategies and tactics in recruiting and hiring the right people.

Figure 4 - Why employees choose the NFP sector - employees’ versus HR leaders’ perspective

Qualifications Working hours Work-life balance

Intellectual stimulationVariety of work Stability

5%54%

6%35%

3%34%

0%29%

3%28%

3%23%

“ NFP employees cite the quality of management as a reason for leaving the sector more frequently than NFP HR leaders. ”

% NFP employees % HR leaders


PAGE 06 | JUNE 2013

Insight two:

Intention to stay and why

NFP employees appear to be slightly more likely than their total workforce counterparts to remain with their employer. This finding was drawn from an Employee Retention Indicator that Sweeney Research generated from the research data, based on responses from NFP employees to attitudinal statements about their employer.

The Indicator also suggests that NFP employees are more likely than the total workforce to advocate their employer/organisation to others, and that their commitment to remaining with the organisation for the foreseeable future is also marginally stronger.

To illustrate:

• 8% more NFP than total workforce employees describe their organisation as a great place to work, and say so to others;

• 6% more NFP employees say they are committed to staying with the organisation for the foreseeable future; and

• 4% fewer NFP employees say they do not see themselves working for their organisation in 12 months’ time.

With staff retention a key challenge for the sector, Maxxia set out to discover what else employers could be doing to increase the likelihood of retaining their people.

This led to the establishment of an inventory of Intention to Stay Drivers, which the research identified as the strongest and most

prominent reasons that loyal employees state for remaining with an organisation:

• The organisation helps me reach my potential;

• Management genuinely seeks to look after the best interests of staff; and

• I have trust and confidence in the organisation’s leadership.

In summary, NFP employers implementing employee engagement strategies and tactics that generate agreement from their people on these Intention to Stay Drivers are likely to increase employee attraction and retention over time.

The study reveals three key drivers of ‘intention to stay’ and identifies that overall:

• NFP employees demonstrate marginally greater intentions to stay than the total workforce;

• However, NFP managers are seemingly less likely to stay with their employer than managers across the total workforce;

• Career development and performance review processes are areas where NFP manager’s perceptions are lower than managers across the total workforce generally.

12% 67%

13% 69%

56% 19%

Great place to work

Committed to staying with the organisation

Don’t see myself working there in 12 months time

Difference

+8

+6

-4

Total workforce

59%

63%

23%

Figure 5 - Employee retention indicator

% NFP employees who agree

% NFP employees who disagree

PAGE 07 | JUNE 2013


20%

31%

30%

23%

Poor career progression

Poor management/supervision

Too much stress

Poor morale

10 20 30 40

24%

30%

24%

23%

26%

36%

Total workforce managers

NFP managers

34%

50%

“ Maxxia’s study identified NFP manager retention as an important source of difference from other sectors. ”

Insight two continued:

Intention to stay and why

Figure 6 - Managers’ reasons for considering leaving an organisationManagement on the move – insights to better retain leadersMaxxia’s study identified NFP manager retention as an important source of difference from other sectors. NFP managers indicated they are less likely to stay with their employers than managers across the broader workforce.

The study found 14% more NFP than total workforce managers have considered leaving their organisation, and 8% more NFP than total workforce managers have taken active steps to pursue other opportunities.

While it could be easy to assume a desire for additional remuneration is behind some NFP managers being more likely to explore alternative employment, Maxxia’s research demonstrates a range of factors are at play, in particular career development and performance review processes. NFP managers’ performance perceptions are lower to those of managers from the total workforce in the following areas:

• 16% fewer NFP managers are excited about their future career prospects with their organisation;

• 14% fewer NFP managers agreed they had clear performance targets;

• 12% fewer NFP managers agree they are given regular feedback by an immediate supervisor to help improve their performance;

• 8% fewer agree that there is a formal performance review process in place.

Addressing the disparity between NFP and total workforce managers on these factors could help the sector to increase its retention of managerial talent. Increased retention would also reduce the costs of recruiting replacement staff, and the opportunity cost of losing employees who have acquired a significant amount of sector knowledge and experience.

Figure 7 - Management propensity to leave the sector

% NFP managers

% Total workforce managers

Thought about leavingTaken active steps to explore opportunities


PAGE 08 | JUNE 2013

Potential management actions➜ Instigate a talent management strategy to identify,

nurture, develop and retain key leaders.

➜ Further align leadership reward and recognition strategies with organisational performance metrics and provide an opportunity to communicate the strategy to all employees, linking KPIs/outputs to this strategy.

➜ Identify and leverage applicable government funding opportunities to underwrite skills development and career progression.

➜ Identify the most relevant drivers of Intention to Stay within your organisation to maximise attraction and retention.

56%

53%

34%

Excited about future prospects where I work

Have clear performance goals

Given regular feedback to help me improve

There is a regular review process

50%

57%

61%

70%

20 30 40 50

45%

60 70

Figure 8 - NFP and total workforce managers outlook

In their own words“We get an opportunity to help the needy and abandoned…like single parents, unemployed and the homeless.”

65-74-year-old male charity worker.

“They offer me a great experience and knowledge for my future. They are giving me enough responsibilities and there is a really nice working atmosphere.”

Female charity worker aged between 18-24 years.

“I love the cause and integrity of the organisation.”

Male charity worker aged between 35-44 years

“A well respected organisation that performs invaluable work in the community. A good employer with a balanced approach to family and work.”

55-64-year-old female health services worker.

“As a disabled person, my employer has a priority of employing disabled people in the local community, thereby allowing unemployable people the opportunity to work.”

35-44-year-old male NFP worker.

% NFP managers

% Total workforce managers

PAGE 09 | JUNE 2013

Insight three:

Growing pains – size matters

As NFPs grow, the challenge is to continue to meet employees’ expectations in the areas of dealing with performance issues, input into decisions, the best interests of staff, respect in the workplace, leadership and balancing the organisation’s goals and employee needs.

Maxxia’s research found that larger NFPs, and in particular those employing 250 or more people (large NFPs), can become ‘corporatised’, leaving them at risk of reducing their appeal to employees.

While 68% of staff at small NFPs (employing 19 or fewer people) are extremely or very satisfied with their employer, satisfaction appears to reduce as headcount grows.

Figure 9 - Employer satisfaction among small, medium and large NFPs* percentage denotes respondents saying they are ‘extremely / very satisfied’

with their employer.

While growth, and possibly consolidation, are becoming an increasing trend, large NFPs can become ‘corporatised’, particularly those employing 250 people or more, leaving them at risk of reducing their appeal to employees.

Why small NFPs were rated as more appealing The phenomena of organisational growth causing headwinds for employee satisfaction is probably not unexpected. However, to aid in better addressing these growing pains, Maxxia’s research has identified six areas that employers could explore to further sustain an appealing workplace. Across each of these issues, small NFP employers are generally outperforming the rest:

1. Performance: Just over half (54%) of employees of large NFPs agree that performance issues are recognised and dealt with effectively, compared with 67% of small NFP employees.

2. Decision-making: 74% of employees of small NFPs agree they have adequate levels of input into decisions that affect them, compared with just 57% of large NFP employees.

3. Staff’s best interest: 79% of employees of small NFPs agree that management looks after their best interests, compared with only 58% of large NFP employees who agree with this.

4. Respect in the workplace: Smaller NFP organisations are regarded as more respectful working environments, with 82% agreeing that employees at all levels treat one another with respect, while only 64% in large and medium NFPs agreed with this statement.

5. Leadership confidence: The management of smaller NFPs appear to engage more effectively with employees, with 81% of employees of small NFPs saying they have trust and

Small Medium

Large

68%

53%

56%


PAGE 10 | JUNE 2013

Potential management actions➜ Take steps where feasible to replicate the personal

attention and engagement with staff that is appealing among smaller NFPs.

➜ Enhance manager engagement skills to effectively articulate employee contribution to organisational goals and achievements, to invite input on key decisions and actively canvass employees about how they can further contribute.

➜ Leverage new communications media such as social workplace networking, video and blogging to facilitate direct two-way communications between NFP CEO’s and frontline employees and volunteers.

40 50 60 70 80 90

Performance issues are recognised and dealt with efficiently

54%

55%67%

Adequate levels of input into the decisions that affect me

57%

74%62%

Management seeks to look after the best interests of staff

58%

65%

79%

Staff at all levels treat one another with respect

64%

64%82%

I have trust and confidence in the organisation’s leadership

65%

65%81%

Good balance of working towards the common goals and needs

65%

84%70%

confidence in their organisation’s leadership, compared to only 65% of medium and large NFP employees.

6. Balancing goals and needs: Employees of small NFP employees agree there is a good balance of working towards the organisation’s goals and individual needs – 84% of small NFP employees agreed with this sentiment compared to just 65% of large, and 70% of medium, NFPs.

These findings suggest that NFP employees appear to value the intimacy and personal engagement typically found in smaller organisations, regardless of the size of their employer. For medium and larger NFPs there appears to be opportunity to further embellish the drivers identified to produce more satisfied and ultimately more engaged employees.

Figure 10 - NFP workers’ responses to key workplace issues “ Workplace satisfaction and headcount are intrinsically linked – as headcount goes up, satisfaction declines. ”


Large (250+) Medium (20-249) Small (2-19)

PAGE 11 | JUNE 2013

Insight four:

‘Happiness’ a key to satisfaction

Understanding the aspects of engagement that correlate with employer and job satisfaction is likely to help NFPs further position themselves as appealing places to work. Maxxia’s research identified the five key aspects of employment that have the strongest correlation with employer and job role satisfaction:1. Working environment;2. Sense of achievement;3. Sense of belonging;4. Level of enjoyment; and5. Level of recognition.

On each of these aspects, NFPs outperformed the total workforce resulting in what we believe is in essence a good news story for the NFP sector.

The strongest correlation with Employer and Job Satisfaction is found with ‘working environment’, ‘enjoyment’, ‘recognition’, ‘sense of achievement’, and ‘sense of belonging’. NFPs are stronger on all of these aspects than the total workforce.

Importantly, the sector also outperformed the broader workforce on a range of other key aspects of employment relating to satisfaction, notably level of recognition, HR processes, level of stress and the quality of the performance review process. There are lessons learned here for managers in the broader workforce to understand and opportunities for them to replicate.

By further enhancing engagement with prospective employees around these aspects of employment, NFPs can leverage their positioning as appealing places to work, ultimately assisting their competitive position in the attraction and retention of labour.

Of note, Maxxia’s research also demonstrates that while these employment aspects are valued by employees, NFP HR managers and decision-makers rate their employees’ sense of satisfaction with these five key areas higher by an average of 18%.

Staff value more than just moneyWhile salary and remuneration levels are often important determinants for prospective employees when considering change or a new role, Maxxia Workplace Insights reinforces that other non-financial factors are also meaningful considerations for employees. In assessing the extent of workplace satisfaction, Maxxia’s research established that NFP workers are essentially happier than their total workforce equivalents.

“ NFPs outperform the total workforce on the aspects of employment that correlate most to employer and job satisfaction. ”

72%

70%

67%

67%

81%

80%

78%

76%

67%

Working environment

Sense of achievement

Sense of belonging

Level of enjoyment

Level of recognition

62%

60 70 80 90


Figure 11 - Satisfaction with key aspects of employment

% NFP employee satisfaction % Total workforce

PAGE 12 | JUNE 2013

58% of NFP workers say they are extremely satisfied or very satisfied with their current employer compared with 51% of total workforce employees. A similar gap is evident when assessing worker satisfaction with their role as opposed to their employer, with 10% more NFP than total workforce employees extremely satisfied or very satisfied with their role.

Potential management actions➜ Implement organisation specific measures that track

employee and manager engagement and its drivers among your workforce.

➜ Determine key drivers and management behaviours that drive employee engagement and satisfaction in your organisation.

➜ Develop tailored “professional and career development” plans for younger employees and those as relevant earning under $69,000 p.a, whilst helping managers to conduct “professional development” conversations.

➜ Leverage government funding programs like the National Workforce Development Fund to assist employees to build skills and gain certifications in competency areas that build their skills.

“ NFP workers are ‘happier’ with their role and employer than their total workforce equivalents. ”

5%

30%

35%

23%

7% 8%

34%

30%

21%

7%

Total employees

NFP employees

6%

22%

43%

23%

5%

NFP employees

9%

30%

36%

20%

6%

Total employees

Satisfaction with role

Satisfaction with employer


Figure 12 - Employer and role satisfaction

The research also identified that the NFP employees who are least satisfied with their employer are typically within larger organisations (250 plus employees), 18-34 year olds and those employees earning in the range of $30,000 - $69,000 per annum.

The variance in the level of satisfaction of these cohorts compared with the most satisfied employees indicates an area of focus and opportunity for the sector to address as it works to maintain and enhance the overall satisfaction of its workforce.

DissatisfiedNever satisfied or dissatisfiedFairly satisfied

Very satisfiedExtremely satisfied

PAGE 13 | JUNE 2013


Insight five:

Play to your recruitment strengths

These employee profiles are more satisfied with their employer and role, and the rate their NFP workplaces higher on key measures. These groups appear to provide HR managers with a more responsive and better fit ‘target audience’ to pursue when recruiting.

Attraction and recruitment is a significant cost for most employers, including NFPs that generally operate with tighter financial constraints than other sectors. Minimising turnover and making the most of available recruitment budgets is important to NFPs as they aim to maximise their focus on service provision and community benefit.

The Maxxia Workplace Insights research identified some specific and measurable ideal employee profiles for NFPs indicating an opportunity for these to form the basis of a more targeted recruitment roadmap for the sector. In particular, there are three employee demographics appearing to represent the best possible employment and retention prospects for NFPs, based on sentiments they expressed about working in the sector.

Women➜ Women surveyed demonstrated higher levels of satisfaction

with their employer (58%) and with their role (67%) than men;

➜ Women were also stronger net promoters of their current employer (+17%) than men, making them potentially better and more effective potential advocates.

HR leaders consider ‘finding and retaining good staff’ to be their greatest challenge. The study reveals that the over 55s, females and part-timers are drawn to NFPs.

Figure 13 - Employer and role satisfaction by gender

Over 55s➜ The over 55s demonstrated higher levels of employer

satisfaction (61%) and role satisfaction (70%) than the younger age groups;

➜ They were also stronger advocates (+15%) for their current employer than younger age groups (+10%).

The pre-disposition of the over-55s to aspire to work in the sector potentially provides a fertile ground for NFPs to access an employee demographic that brings with it both lived and professional experience that younger employees are generally less able to offer. NFPs – and those in the community that access their services – would appear to benefit from a demographic that desires to work in the sector and who in general achieves a higher level of job satisfaction once employed.

Given Australia’s ageing population, the research indicates an opportunity for the NFP sector to access a growing pool of valuable mature workers who can make a significant contribution and provide it with a more fertile recruiting ground in future years.

-5%

17%

0

10

20

58%

54%

Extremely/very satisfied with

employer

62%

67%


role

Fig 13. Net Promoter Score

Male Female

58%

54%


employer

62%

67%


role


PAGE 14 | JUNE 2013

Part-timers➜ Part-time workers were found to be more satisfied with their

employer and their specific role than full-time and casual equivalents;

➜ Part-timers were also stronger net promoters of their current employer (+19%) than full-timers (+8%) and casuals (+9%), making them greater advocates for the sector.

Without discounting whatsoever the contribution other employee demographics can offer NFPs, or other efforts to increase representation of minority demographics, the sector may be able to realise greater recruitment efficiencies by playing to its recruitment strengths.

Further targeting the explicit interest of part timers, the over-55s and women working in the NFP sector may also help minimise potential barriers behind some employees’ reluctance to work in the sector. This could be achieved in part by NFPs annunciating what appeals to these employee

“ Of all the worker demographics, the over 55s, women and part-timers are the most pre-disposed to a career in the NFP sector. ”

Potential management actions➜ Establish an organisation fact base linking clear

attraction and retention indicators with relevant employee demographics, indentifying which demographic groups work best in your organisation.

➜ Develop strategies for pursuing and retaining employees from the most attractive demographic segments.

➜ Benchmark and monitor performance on these indicators over time.

61%

55%


employer

63%

70%

Extremely /very satisfied with

role

0

10

20

15%

10%

Fig 14. Net Promoter Score

Under 55s Over 55s

61%

55%


employer

63%

70%

Extremely /very satisfied with

role 0

10

20

8%9%

19%

55%63%


employer


role

57%

70%66%

59%Fig 15. Net Promoter Score

Part time Full time Casual

55%63%


employer


role

57%

70%66%

59%

Figure 14 - Employer and role satisfaction by age

demographics about working in the sector, such as the positive engagement, workplace satisfaction and flexible working arrangements.

Figure 15 - Employer and role satisfaction by classification

PAGE 15 | JUNE 2013

Bill Lang, Principal, Human Performance Company

Not-for-profit leadership ready for the next level

Recent sector reviews, including the 2010 Productivity Commission (1), have identified a number of challenges to the NFP sector and its leadership, including:

• a complex regulatory framework with differing corporate and financial reporting requirements;

• a need for greater business planning capabilities; and

• staff retention and the sustainability and quality of services due to significant wage gaps.

Extensive research in the services sector to determine service organisation health and performance drivers has been undertaken by Harvard Business

School(2) since the early 1980s. This work is summarised in the Service – Value – Chain framework.

Fundamentally, it shows how organisation health measures like employee engagement and people leader effectiveness drive service quality, productivity and client experience. Combined, these measures underpin the sustainability and contribution of a service organisation.

With the Maxxia Workplace Insights report leaders of NFP organisations now have access to an improved NFP human resources fact base. The insights in the report – along with the broader research findings – can help leaders take their

people development and organisations to the next level.

Maxxia’s study shines light on several initiatives that NFP organisation leaders might consider to increase the retention and productivity of their people, and in doing so increase the quality and sustainability of the services provided.

Possible initiatives can be identified for each level of organisation leadership with the following suggestions forming an initial checklist:

Board of Directors

✔ Review each six months a set of organisation HR metrics that track and benchmark lead indicators including

The not-for-profit sector is large, diverse and a critical supplier to the Australian community.

References:1. Productivity Commission review NFP Sector 2010, Commonwealth Government2. Heskett, James L., Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr. and Leonard A. Schlesinger

(2008, July-August). Putting the Service-Profit Chain to Work. Harvard Business Review.


PAGE 16 | JUNE 2013

“ Maxxia’s study shines light on several initiatives that NFP organisation leaders might consider to increase retention and productivity. ”

employee engagement, productivity, management performance and organisation productivity

✔ Ensure professional development and succession plans are in place for leaders within your organisation

✔ Align senior manager reward and recognition plans with relevant non-financial performance metrics, including employee engagement

Chief Executives and Executive Committees

✔ Establish an organisation HR fact base from which to formulate and measure effectiveness of your people strategies

✔ Develop a talent management strategy to develop and retain key executives and leaders

HR Leaders

✔ Establish an organisation HR fact base and educate leaders and the Board on how investment in HR strategy can increase organisation sustainability and performance

✔ Monitor lead indicators of HR and organisation effectiveness which include employee engagement, supervisor and manager performance, and employee intentions to leave

✔ Identify the most relevant drivers to increase people performance and retention in your organisation

✔ Identify and target the most attractive employee demographics to match your attraction and retention goals

✔ Leverage government funding opportunities to underwrite

leadership and operational skills development (see www.training.gov.au)

Front-line managers and supervisors

✔ Build skills in communication and team leadership to facilitate greater engagement and contribution (see www.training.gov.au)

✔ Facilitate team meetings and problem solving sessions where team members feel valued and involved in decision making

✔ Aim to better understand team members’ work and career aspirations and provide professional development and personal mentoring, especially for younger team members

The NFP sector plays a significant and irreplaceable role in the fabric of Australian life and our community. Maxxia Workplace Insights is a valuable contribution towards helping the NFP sector continue to evolve.

Bill Lang is principal of the Human Performance Company and one of Australia’s foremost experts on building people leadership skills to increase employee engagement and organisation performance. The Human Performance Company serves over 200 organisations including many public sector and not-for-profits including Save the Children, The Red Cross and St Vincent’s Mater Hospital.


Overall, the NFP sector is providing a solid, valuable and satisfied employment and career base for its people. Hopefully, armed with some of the insights from this research, Maxxia have provided further learnings and opportunities to retain and acquire good employees that want to make a difference in the community whilst advancing their skills.

PAGE 17 | JUNE 2013

About the research

Sweeney Research’s approach included a mix of quantitative and qualitative research to establish the views of employers and employees within the NFP sector. The methodology included:

• Initial focus groups with employees from the NFP and non-NFP sectors across a range of income brackets; and

• In-depth interviews with selected employers.

This formative research informed the

development of a comprehensive online questionnaire, which was the principal survey instrument, featuring:

• 808 online interviews with employees around Australia in the NFP sector; and

• 875 online interviews with employees around Australia in other sectors (referred to as the ‘total workforce’ in this report).

The survey sample was sourced from a leading online panel provider, Research

Maxxia commissioned one of Australia’s largest and most respected market and social research firms, Sweeney Research, to conduct the inaugural Maxxia Workplace Insights study.

Now, with the final data weighted to the ABS Census to ensure it was representative by gender, age and state.

Sweeney also conducted 200 telephone interviews with decision makers responsible for employee recruitment in NFPs (referred to as ‘HR leaders’ and ‘HR managers’ in this report) across Australia. Quotas were employed for state, NFP sector and organisation type to provide a broad coverage of the NFP sector, with the sample sourced from Dunn & Bradstreet.


PAGE 18 | JUNE 2013

About Maxxia

Maxxia is part of the McMillan Shakespeare Group (MMSG) - the leading provider of employee remuneration benefit solutions and the largest administrator of novated leases in Australia.

With over 800 staff, the Group delivers market leading benefit programs and personalised service to hundreds of thousands of employees.

Maxxia has been an industry leader for more than two decades, helping our many prominent health, NFP, government and private sector clients implement effective workplace benefit programs to improve staff attraction and retention.

For more information, call Rohan Martin, Corporate Affairs Manager for Maxxia, on 03 9097 3842 or visit maxxia.com.au.

BUSINESS LOCATIONS

NSW Maxxia Level 4, 2-4 Lyonpark Road North Ryde NSW 2113

VIC/TAS Maxxia Level 19, 360 Elizabeth Street Melbourne VIC 3000

SA Maxxia Ground Floor, 45 Pirie Street Adelaide SA 5000

QLD Remuneration Services (Qld) Holden Leasing Level 13, 60 Edward Street Brisbane QLD 4000

Remuneration Services (Qld) Level 1, 112 Denham Street Townsville QLD 4810

WA Maxxia Office C20, Level 1, 513 Hay Street Subiaco WA 6008


This document has been prepared in June 2013 by Maxxia Pty Ltd. ABN 39 082 449 036 Authorised Representative (No. 278683) of McMillan Shakespeare Limited (AFSL No. 299054) based on research commissioned by Sweeney Research. All information provided is current as at June 2013. Maxxia claims copyright and the document form is not to be copied or provided in any manner to any other person without prior written permission from Maxxia. maxxia.com.au

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2013 | Not-for-Profit Sentiment Study · Australia’s vital NFP sector, analysing the sentiments...

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