Why choose NFP work?

Although this article is angled more towards those looking to move into the not for profit (NFP) sector, many of the ideas presented are also applicable if you are already working in the space.

So whether you're taking your first steps into aged care, disability or other NFP work, or you're already in the sector and seeking a leadership or specialised role, landing the right position requires preparation, strategy, and perseverance. These sectors offer more fulfilling career opportunities however it is important to understand that like any area of work, there are positive and negatives.

So we recognise that the NFP sector is not for everyone and, like other sectors, there are downsides to consider when deciding to enter the space or when looking to develop a long term career through a promotion.

So what are some of the challenges faced by employees in the NFP sector?

• Lower Salaries & Limited Financial Incentives – Most NFPs operate on tight budgets, meaning salaries are often lower than equivalent private-sector roles. Bonus structures, commission incentives, and performance-based raises are less common and whilst salary packaging (tax benefits) helps, it doesn’t always fully compensate for the lower base salary especially in this current world of relatively low rates of income taxation.

• Funding Uncertainty & Job Security - Many NFPs depend on government funding, grants, and donations, which can be uncertain and time limited with many roles specifically linked to funding cycles.

• Resource Constraints & High Workloads – Having to do more with less has been a NFP reality for many years and sadly, even in a wealthy nation such as Australia, there is always more demand for social services than there is supply. Small teams with big workloads does lead to burnout. Additionally, employees may be expected to wear multiple hats (e.g., an HR manager may also oversee fundraising or policy) and access to technology, systems, and tools to alleviate work burdens can be limited again due to budget constraints.

• Slow Decision-Making & Bureaucracy - Boards, committees, and multiple stakeholders are often more involved with day to day operational decision-making, leading to slow approval processes and with government funding comes a high level of governance and compliance overhead. These issues combined with the potential for terrible consequence for people receiving a service, can result in leadership being risk-averse, prioritising stability over innovation.

• Emotional & Mental Strain – a big challenge for sector employees is the downside of helping disadvantaged, vulnerable or high-needs communities is the concept of vicarious trauma leading to emotional burnout. Employees may struggle with compassion fatigue, particularly in crisis response roles.

On the other hand, the NFP sector is an amazing place to work so let’s talk about what is so special about the not for profit sector?

• Purpose-Driven Careers – The NFP sector is about making a measurable difference in people’s lives. Every role contributes, whether in frontline care, administration or leadership and unlike corporate roles, where success is measured in revenue, NFP workers see firsthand how their work changes lives.

• Job Satisfaction – As an often direct result of the mission/purpose aspect of the sector, employees often feel deeply connected to their work with studies showing that job satisfaction in NFPs is higher than in many private-sector roles.

• Team Composition – The only thing better than seeking a purpose focused role is being surrounded by purpose driven people. NFPs attract people who are passionate, purpose-driven, and community-minded and the sector is a positive role model for embracing inclusion, diversity, and social responsibility.

• Diverse Opportunities – While many roles involve direct care and specialised knowledge and experience, the NFP sector also requires professionals in HR, finance, IT, administration, and leadership, making it possible to transfer skills from other industries. Not only are the roles diverse but in general, the sector is positively predisposed to providing staff with exposure to different areas with employees gaining cross-functional experience. Additionally, leadership opportunities often arise earlier than they would in commercial settings.

• Flexibility - Many NFPs prioritise employee well-being, recognise and prioritise the importance of family offering flexible work arrangements. Additionally, the focus on mental health and a positive workplace culture is usually very genuine.

• Tax Benefits & Salary Packaging – Most NFPs offer salary packaging, allowing employees to pay less tax and take home more pay. Benefits include meal and entertainment allowances, car leasing, and tax-free portions of income allowing employees in the NFP sector the potential to earn a similar net salary as their private-sector counterparts even if the base salary is slightly lower.

• Sector Growth – With Australia’s ageing population and increasing demand for community services of all shapes, opportunities for employment and advancement are expanding.

  
  

And the list goes on including opportunities for advocacy and to influence public policy, raise awareness and create systemic change. Facilitating a coalescing around a Strong Sense of Community & Team Spirit with shared goals all helping create strong workplace bonds.

So is the NFP sector right for you to enter or press the button on accelerating your existing NFP career? If you’re looking for meaningful work, strong values, and a sense of purpose the Australian NFP sector offers unique career benefits that go way beyond just a pay check and the vast majority of people who are entering or are already in the NFP, never look back!

Our next post will talk about developing your materials (resume and cover letter in particular) to secure a role in the NFP space.