The Gap in the Market: Not-For-Profit Recruitment

It was John F Kennedy who once famously stated that written in Chinese, the word ‘crisis’ comprises two characters –  one that represents ‘danger’, and the other ‘opportunity’. At the height of the global economic crisis, never was this quote more poignant for recruiters.

You might hear that it’s shut-up-shop time for recruitment. However, recruitment within the Not-For-Profit (NFP) sector could and should be seen as an opportunity to be grasped with both hands. This is particularly true for those who specialise in business analysis, change management, financial consultancy and systems implementation.

What is the NFP sector?

It is hard to accurately define what the boundaries of the NFP arena are. Essentially, it incorporates local community groups to large multi-branch organisations, consisting of registered charities, professional bodies, trade associations, housing associations, voluntary organisations and arts and heritage establishments. Unlike the public sector (which is often aligned to NFP and is determined by a single source of income), NFP establishments are run independently.

A big question we are faced with today is how dependent is the NFP sector upon government spending plans? It is clear that the majority of housing associations and organisations that receive some government funding are likely to ‘hold fire’ on financial expansion until it is clear what plans have been laid out in the Government’s Spending Review on October 20th. However, it is less clear what knock-on effect the proposed spending review of October 20th will have.

Crisis or opportunity?

Some areas, such as housing and social enterprise, will be faced with inevitable workforce reductions through redundancies. However, as an optimist I see this as an opportunity for accountants to come into their own. Why? Because we could be at a turning point for the level of involvement that third sector organisations have in our society. As such, charities, social enterprises and all NFP organisations must ready themselves and have their eyes wide open to the challenges their very survival depends upon. Value for money and budget forecasting have never been more essential. Strengthening leadership and financial management, performing routine evaluations to prove the value of services, cost analysis and change management are just some of the tools vital to ensuring economical survival; creating opportunities for accountants to tend to the needs of organisations that are reliant on implementing reform.

The political philosopher Karl Marx, once said that “power is the ownership or resources”. If this is true, then we are posed with the chance to provide a unique service to their clients at a much-needed time. In essence, it has never been more important to focus on the service recruitment consultants are providing within the NFP arena. Financial leadership, financial consultancy and business analysis are vital in securing the survival of such entities amidst the current economic conditions of the NFP market.

According to the Financial Times, companies are likely to invest in “the expertise of such practitioners to ensure economic efficiency is maintained”. It is therefore clear that a rational approach to financial decisions is needed.
 
Unlike the private domain, NFP relies on the support and dedication of its members to flourish. In starving them of financial resources, or indeed reducing the amount they receive, is to jeopardise the foundations of their existence. With a focus on catering to needs and marketing real value for accountants, NFP establishments are likely to come through the recession in better shape than they entered it. It would seem that when one door shuts, another can indeed open.



Jonathan Male is a Consultant on the Not-for-Profit team at Marks Sattin. He covers temporary recruitment across an ever-expanding portfolio of non-profitable organisations including: Charities, International Development Organisations, Housing Associations, Educational Institutions and Social Enterprises.

Comments

[Adrian Rutter]

Although I agree whole-heartedly with Jonathan about the professional opportunities available, and the sector's need for our skills, my own experience of working there adds a cautious caveat.

There's a particular set of cultures within NFP entities that mean accountants working in the sector need some very specific skill-sets, including, at times, a very thick skin! I was once asked by a medical colleague to resolve a cost-dispute on the grounds that as "accountants don't care about people", I could argue our charity's case more strongly than she could. You'll find yourself having to persuade and influence much more than in a commercial environment. And you'll need to value and respect a very different set of priorities and designated outcomes, and blend them into the value-for-money and efficiency targets you may be used to.

It's not a sector for everyone, but, for the right people, the professional opportunities really are boundless. And, as Jonathan says, the need for our skills has never been greater or more obvious.

[Yemi Akinsiwaju]

I agree totally.

The article certainly captures the essence of the opportunities available to accountants.

In addition to the skills of Financial leadership, financial consultancy and business analysis, accountants will also need to constantly expand on their change management capabilities in order to respond effectively to the increasingly complex needs of the NFP sector in this rapidly changing and unstable business environment.

[salman]

This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.