2019 canadian nonprofit sector salary & benefits …...study covers both compensation and...

2019 Canadian Nonprofit Sector Salary & Benefits Study

Highlights Webinar

February 21, 2019

Today’s Agenda

■About The Portage Group■Study Overview■Who Participated?■Study Highlights■How to Use the Compensation Benchmarks■Making the Case!■Q & A

©2019 The Portage Group Inc. & CharityVillage

About The Portage Group

■Full service management consulting company focused on the not-for-profit sector.

■Core services include:• Research• Strategic planning• Governance• Executive recruiting• Organizational design

■Extensive experience conducting compensation studies.


About the Presenters

■ Founder/senior consulting roles with Association Resource Centre, Leader Quest and, since 2015, The Portage Group

■Practice focus includes executive search for many types of NFPs – associations, charities, regulators, unions, etc.

■ Fellow of the management consulting profession (FCMC)


Geoffrey Thacker, Executive Partner Jack Shand, Executive Partner

■CEO of three national organizations in the NFP sector prior to consulting

■Volunteer roles have included management education (university committee chair), health charity (national fundraising chair), to community level (board director)

■ Senior consulting roles with Association Resource Centre and co-founder of The Portage Group

■ Leads TPG’s research practice.

■Over 20 years experience leading, designing and conducting market research –the last 16 years have been focused on associations and nonprofits

■Has lead over 30 compensation studies in the nonprofit sector including all five of CharityVillage’sstudies

■ Served in a management role in PricewaterhouseCoopers’ Measurement & Market Research practice

Study Overview

■1,590 not-for-profit organizations participated in November and December 2018■56% increase in number of responses from 2017■Total of 4,546 staff position profiles in six levels:

• 797 - Level 1: Chief Executive• 230 - Level 2: Senior Executive• 531 - Level 3: Senior Management• 858 - Level 4: Management/Supervisory Staff• 1,491 - Level 5: Functional & Program Staff• 639 - Level 6: Support Staff

■Total of 12,326 individual staff represented■Study covers both compensation and benefits


Study Limitations

■Compensation figures are as of December 2018.

■Results are based on survey responses and are only as accurate as the data provided by survey participants.

■Survey was not random. Accordingly, it may or may not be an accurate representation of the total of the nonprofit sector in Canada.

■Interpret smaller segment data with caution due to small sample sizes.


Who Participated?


Registered Charity,

68%

Other Nonprofit,

32%

Organization Type

36%

16% 16% 13%20%

Budget29%

19% 17%

8% 8%

19%

Number of Staff

BC22%

Alberta10%

Prairies5%

Ontario57%

Quebec2%

Atlantic4%

Local/municipal44%

Regional18%

Provincial16%

Multi-province

1%National

17%

International4%

Jurisdiction

Study Highlights


Cash Compensation by Level


$90,128 $92,930$82,129

$58,752$45,066 $41,813

$1,370 $1,295$345

$124

$99 $58

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Level 1:Chief Executives

Level 2:Senior

Executives

Level 3:Senior

Management

Level 4:Management/

SupervisoryStaff

Level 5:Functional &Program Staff

Level 6: SupportStaff

Base compensation Bonus or additional compensation

$91,498 $94,225 $82,474 $58,876 $45,165 $41,871

Bonus Compensation by Level


Level 1 Level 2 Level 3 Level 4 Level 5 Level 6

Among all staff 1.1% 1.1% 0.4% 0.2% 0.2% 0.1%

Among those who receive bonus pay 7.8% 7.5% 5.0% 3.8% 4.3% 2.7%

13% 14%

8%5% 4% 5%

0%

10%

20%

30%

Level 1:Chief Executives

Level 2:Senior Executives

Level 3:Senior

Management

Level 4:Management/

Supervisory Staff

Level 5:Functional &Program Staff

Level 6: SupportStaff

Percent of Staff Who Received Bonus Compensation

Average Amount of Bonus Cash Compensation (% of base compensation)

Change in Cash Compensation by Level 2011 to 2018


$88,740$86,461

$90,315

$94,874

$91,498$91,388 $89,575 $90,981

$94,522

$94,225

$75,072

$73,922$78,832 $80,306

$82,474

$53,745$54,447 $54,409

$62,475

$58,876

$43,401$43,436 $44,740 $44,280

$45,165

$36,938$38,839 $38,914 $38,118

$41,871

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

2011 2012 2013 2016 2018

Level 1: Chief Executives Level 2: Senior Executives

Level 3: Senior Management Level 4: Management/Supervisory Staff

Level 5: Functional & Program Staff Level 6: Support Staff

Determinants of Compensation

■Region: Compensation for 4 of 6 staff levels is highest in the GTA

■Budget: Higher budgets correlate to higher compensation for management levels

■Number of Staff: Larger staff size correlates to higher compensation for management levels

■Community Size: Working in a larger community generally equals higher pay

■Jurisdiction: A larger geographic scope correlates to higher compensation for 4 of 6 staff levels

■Age: Strong link between age and compensation

■Experience: Strong correlation between experience and compensation, especially years working in the current discipline

■Education: Higher education correlates to higher compensation


Organization Characteristics Personal Characteristics

How to Use the Benchmarks


How to Use the BenchmarksStep 1: Establish the Position Profile

■Organization Type = Registered Charity

■Location = Ottawa■Jurisdiction = National■Budget = $1.2 million■Number of Staff = 7■Affiliation = None

■Position = CEO■Status = Full-time■Age = 56■Education = MBA

Organization Characteristics Personal Characteristics


How to Use the BenchmarksStep 2: Identify Your Benchmark Categories – Organization Type

■Type: Registered Charity■Region: Ottawa■Jurisdiction: National■Affiliation Status: Stand-alone■Budget: $1M to $2M■Number of Staff: 6 to 10■Employment Status: Full-time■Age: 56 to 65■Education: Graduate Degree

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How to Use the BenchmarksStep 2: Identify Your Benchmark Categories - Region

■Region: Ottawa■Type: Registered Charity■Jurisdiction: National■Affiliation Status: Stand-alone■Budget: $1M to $2M■Number of Staff: 6 to 10■Employment Status: Full-time■Age: 56 to 65■Education: Graduate Degree

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How to Use the BenchmarksStep 3: Summarize Your Benchmarks

Base Salary Bonus Total Cash Avg. Bonus % N2018 Total Registered Charity $89,056 $1,239 $90,296 1.0 587Ottawa $98,293 $2,380 $100,673 1.6 46National $107,756 $2,503 $110,259 1.7 95Stand-alone $87,733 $1,116 $88,849 0.9 464Budget of $1M to $5M $94,308 $1,549 $95,857 1.4 103Staff of 6 to 10 $78,822 $787 $79,609 0.7 128Full-time $90,979 $1,302 $92,281 1.1 515

Base Salary Bonus Total Cash Avg. Bonus % N2018 Total Ottawa $102,414 $2,906 $105,319 2.3 70Registered Charity $98,293 $2,380 $100,673 1.6 46National $90,829 $3,665 $94,495 2.9 26Stand-alone $105,810 $2,831 $108,641 2.3 55Budget of $1M to $5M $103,615 $4,168 $107,784 2.7 13Staff of 6 to 10 $102,042 $4,982 $107,024 4.1 17Full-time $106,619 $3,159 $109,778 2.4 64

Registered Charity Benchmarks

Ottawa Benchmarks


How to Use the BenchmarksStep 4: Consider Quartiles and Choose Data Points

Base Salary Bonus Total Cash Avg. Bonus % N2018 Total Registered Charity $89,056 $1,239 $90,296 1.0 587Ottawa $98,293 $2,380 $100,673 1.6 46National $107,756 $2,503 $110,259 1.7 95Stand-alone $87,733 $1,116 $88,849 0.9 464Budget of $1M to $5M $94,308 $1,549 $95,857 1.4 103Staff of 6 to 10 $78,822 $787 $79,609 0.7 128Full-time $90,979 $1,302 $92,281 1.1 515


1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 95th Percentile

< $62,653 $62,653 to $79,000 $79,000 to $109,242 $109,242 < $167,483


How to Use the BenchmarksStep 4: Consider Quartiles and Choose Data Points

Base Salary Bonus Total Cash Avg. Bonus % N2018 Total Ottawa $102,414 $2,906 $105,319 2.3 70Registered Charity $98,293 $2,380 $100,673 1.6 46National $90,829 $3,665 $94,495 2.9 26Stand-alone $105,810 $2,831 $108,641 2.3 55Budget of $1M to $5M $103,615 $4,168 $107,784 2.7 13Staff of 6 to 10 $102,042 $4,982 $107,024 4.1 17Full-time $106,619 $3,159 $109,778 2.4 64

Ottawa Benchmarks

1st Quartile 2nd Quartile 3rd Quartile 4th Quartile 95th Percentile

< $72,800 $72,800 to $93,500 $93,500 to $130,000 $130,000 < $199,020


How to Use the BenchmarksStep 5: Set Range

■Note: • There is no one correct approach.• The report data is a guideline only.• You should consider other factors such as the cost to replace staff and the

current labour market.• The greatest weight should be given to the closest or most relevant

comparables.



■Common Approach 1: Select High and Low• High = National - $110,259• Low = Staff of 6 to 10 - $79,609

■Range would be $79,600 to $110,300

■Mid point is $94,950 (($79,600+$110,300)/2)

LOW

HIGH

Total Cash2018 Total Registered Charity $90,296Ottawa $100,673National $110,259Stand-alone $88,849Budget of $1M to $5M $95,857Staff of 6 to 10 $79,609Full-time $92,281

Total Cash2018 Total Ottawa $105,319Registered Charity $100,673National $94,495Stand-alone $108,641Budget of $1M to $5M $107,784Staff of 6 to 10 $107,024Full-time $109,778


Ottawa Benchmarks


ALT. LOW

ALT. HIGH

Alternate Approach (drop high and low)Range: $88,800 to $109,800Mid point: $99,300


■Common Approach 2: Benchmark Average ±X%• Assume desired range variance is 10%• Average of benchmarks is $99,400 (rounded)• Desired variance is ± $9,940 ($99,400 X 10%)• Upper Limit = $109,340 ($99,400 + $9,940)• Lower Limit = $89,460 ($99,400 - $9,940)


■Mid point is $99,400




Ottawa Benchmarks



■Common Approach 3: Average of Category Averages ±X%• Assume desired range variance is 10%• Average of category benchmarks is $99,400

(rounded [($93,975+$104,816)/2])• Variance is ± $9,940 ($99,400 X 10%)• Upper Limit = $109,340 ($99,400 + $9,940)• Lower Limit = $89,460 ($99,400 - $9,940)


■Mid point is $99,400




Ottawa Benchmarks

Avg. Reg. Charity $93,975

Avg. Ottawa $104,816

Average of Category Benchmark $99,396


Making the Case!


CURRENT JOB MARKET■ A robust market with

unemployment at a 40 year low■ Exceptions including in the NFP

(not-for-profit) sector:• Ontario: Uncertainty about future

government funding (e.g., healthcare)

• Alberta: Economy overall although there may be some action with the upcoming election

• Nationally: Some evidence of corporate caution and corresponding downsizing in some charities


CURRENT JOB MARKET■ Strong competition exists for

quality jobs• People across sectors looking to

“move on & move up” if current position is flat-lining

• Some Boomers staying in the market

• Some early Gen-Xers seeking “new” [2nd or 3rd] careers in the NFP sector

• Generally, post-Boomer generations have more diverse experience to bring to organizations


Trends in Compensation■ In addition to the movement reported in the CharityVillage report for the

past two years:• Inflation in Canada was ≈ 2% (12-2018) though it was as high as 3% (7-

2018)• Forecast consensus for inflation in 2019 is 2.5%• Mercer reported compensation increases in 2018 (non-union) at 2.4% on

average; forecasting 2.5% for 2019• Conference Board of Canada projects increases for 2019 ranging from 2.2%

[public sector] to 2.9% [private sector]. NFP is likely closer to the mid-point• Morneau Shepell’s annual employer survey reported expected increases of

2.6% in 2019, with some variance (professionals higher at 3% and health-care sector related positions at 1.7%)

• Other firms (e.g., Aon, Hay Canada, Accompass) report similar results/forecasts

• Comparatively, 2017 average increase was 2.6% and 2018 was 2.7%


Trends in Compensation■ Primary drivers of compensation increases (source: Mercer)

1. Staff retention2. Rewarding performance


Observation■ Objective data is an important source for employers, but there are

other factors to be considered in the NFP sector…■What your directors earn and are earning will have a significant

influence on what you earn■ Value delivered and “ROI” for the member (or funder)


MAKING THE CASE■ Some fundamentals:

• Institute and follow a Performance Management system

• Have a plan and do your homework • Show how you are contributing

above core expectations and results that ‘add-value’

• Say what you want, be realistic, and back it up with research

• Do not be negative or personal (e.g., “We have high turnover because the Board doesn’t care”)


Making the Case for Change■ Your Board’s [employer’s] focus in this current reality –

• Retaining great performers but also reducing costs• Internal equity • Mindful of what’s happening in the world in which your organization operates [what is reality for those it serves]

• External accountabilities (e.g., to public funders)


Making the Case for Change■Where your Board comprises senior business people/professionals,

they’re thinking…• Have your results reduced costs?• Have your results avoided costs? • Have your results increased revenue? • What are the costs [hard & soft] if you “walk” –⁃ Hiring costs⁃ Salary costs ⁃ Strategic momentum costs


Observation■ If you are the chief staff person, find a champion respected by the

Board to be your advocate, preferably a Senior Officer■ If you are the HR lead or other key employee, gather the data and

patiently present the case to decision-makers, e.g., • turnover rates• exit interviews • relevant research data


IT MAY BE TIME TO GO■ Reality

• Not all NFPs are created equally; someone can always pay more

• If there is no prospect to move up or learn more, and you are seeking growth, move on

• Use your network and be known to and appreciated by recruiters

• Monitor position availability and compensation

• There is no cost to exploring the market other than a little time

■ Benefits to a change• New challenge = new learning, new

experiences, new results that are marketable

• New environment or new perspective • New benefits


NOT ONLY THE $ € £■ Consider enhancements other

than salary –• Vacation• Consulting• PD/Education • Benefits (insurance, pension, etc.)

• Workplace policies (e.g., work from home)


Thank You!


2019 canadian nonprofit sector salary & benefits …...study covers both compensation and...

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