Average staff turnover in the charity sector is at 16% per year which is a significant reduction on the People Count 2010 result of 20%; however this figure is still higher than the UK average of 13% according People Count Third Sector, an HR benchmarking study undertaken by Agenda Consulting in partnership with the National Council of Voluntary Organisations (NCVO).

This is just one of a raft of significant findings designed to pinpoint areas where, according to Roger Parry, director of Agenda Consulting: “Effective human resource management is becoming increasingly important for third sector organisations, and the task is set to be challenged further with the coalition government’s public spending cuts”

Entitled People Count Third Sector, the study benchmarks medium to large third sector organisations (those with more than 50 employees) within the UK.

Other findings include:

The median turnover for fundraising staff has decreased significantly to 12% this year from 19% in People Count 2010

On average managers make up 17% of all employees. For a quarter of respondents this was 9% or less and for a quarter of organisations it was 24% or more

The representation of women in senior management is on the increase. On average, well over half (60%) of managers, and 44% of the Senior Management Team, are women. In 38% of respondent organisations, there is a female Chief Executive

Employees from an ethnic minority make up on average 11% of respondents’ workforce, although these figures vary significantly by region. This is higher than for the UK workforce as a whole (9%)

The average cost of advertising per post is £774, £303 less than People Count 2010 figure

The median ratio of all employees to HR employees is 57, compared with the whole UK figure of 77. This number increases with the size of organisation which is evidence of economies of scale.

Roger Parry added: “A key concern this year for many third sector organisations remains the need to deliver more with less. Many organisations have already had to make tough decisions and will continue to do so as they experience a greater demand for their services coupled with reduced resources to deliver them.

"The impact of the public spending cuts will also inevitably affect the resources available to organisations in the sector. This, along with some lasting effects being felt from the recession, means the sector is still facing an uncertain future.”

“Meeting these challenges successfully will only be possible if organisations are able to ensure that their costs are tightly managed and that their HR processes are very effective.”

“There are many other demands on third sector organisations: a) Government may wish them to enhance their roles in the delivery of public services; b) there is increasing pressure for organisations to demonstrate their ‘value added’ to their stakeholders and to society at large; and c) there is sometimes considerable competition between them.”

“Third sector organisations need to be effective in their approach to human resource management.

"They need to balance the need to recruit and retain talented people, develop the skills and capabilities that their organisation requires, and build the processes and culture to achieve a high performing and motivated workforce with the reduced resources available to them.”

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