The impact of the cost-of-living crisis on the third sector

Tighter budgets combined with rising demand for services and talent shortages are stretching the charity sector like never before. The Charities Aid Foundation survey found that 71 per cent of UK charity bosses expressed concern over managing increased demand for their services.

For third sector leaders, this isn’t the time to ignore the problem and hope that it goes away. Although no one can control the varying need for services, there are steps that hiring managers can take to future-proof their business by investing in their talent pipelines, tightening up hiring processes and looking after current staff. Now isn’t the time to be losing talent so for employers looking to do something positive and productive in this challenging time, taking a step back to review processes might be a good starting point.

Understand your needs

One of the biggest mistakes that organisations make is to panic hire when someone leaves an organisation or when they are looking to explore a new direction, and then realise that they have hired for the wrong role.

It is worth taking the time to remember your primary mission and to understand what is needed to achieve that, rather than what you think you need. You may find that staff have talents not being utilised which could fill a specific skills gap and allow you to hire someone to cover a whole new area of finance.

This also means that when you come to hire, you will have a better idea of exactly what you need from a candidate – which elements you may be willing to compromise on and the parts that you aren’t. Recruitment partners will be able to help with this too, as they have unparalleled insights over the sector and a good understanding of the quality of candidates available.

Be open to different talent

Although it’s important to know what you need, it’s equally as crucial to remain flexible where you can. To ensure that you are reaching the very best talent, try to avoid forming a narrow view of the type of candidate your organisation needs, and although there will be certain roles that do require very specific skills or qualifications, others may allow for greater flexibility.

If employers cannot find the exact fit for their requirements, they must be willing to compromise on certain elements, such as experience. For instance, if a small charity is looking to fill a senior finance position, and a candidate has significant experience in a large organisation but has been in a less senior role, this may be the perfect opportunity for them to take a step up. Again, recruitment consultants can help with this as they will have the best idea of pay expectations and whether your ‘ideal’ candidate exists.

Watertight processes

In a candidate-driven market where applicants may be receiving multiple offers, hiring is proving increasingly difficult. Therefore, it’s integral that you do not lose any applicants due to lengthy hiring processes or poor communication. We have written about why timing is critical previously, but it cannot be overemphasised. Potential employees are also evaluating how appealing you are as an employer, so showing how much your value their time could just tip the balance.

The same of course goes with your current workforce, it is vital that they are made to feel appreciated.

Lean on technology

Technology that has the potential to transform your financial processes and systems, is constantly evolving. Automation isn’t about replacing staff, it’s about harnessing technology to speed up or take over tedious manual processes, that will free up your workforce to take on more complex tasks. Organisations shouldn’t shy away from it and those who are able to embrace change will benefit from the more technical staff they are able to hire as a result.

Data, data, data

As has been seen across numerous industries, the best business decisions are those grounded in data. Making significant decisions without a basis or strategy can be damaging, for instance launching a new funding campaign. Finance departments can assist with this as they are able to provide detailed cash flow reports and communicate what this means to stakeholders. Having someone in your ranks with this skill can give you a far better idea of where costs could be reduced and help you to plan.

If you need to attract new talent, we are experts in navigating the jobs market and helping you to secure the best candidate around – get in touch with our team today: https://www.robertsonbell.co.uk/