HOUSTON (Feb. 7, 2022) – As part of its recently released 2021 Wage and Benefits Survey, the United Way of Greater Houston reports on the responses of more than 100 Houston-area nonprofits that shared data on compensation practices and the impact of the COVID-19 pandemic on their organization. Conducted from August – October 2021, the survey provides statistical insights into the financial and workforce effects of COVID-19 on the region’s nonprofits.
Notably, nearly half of respondents (48%) saw a reduction in revenue as a result of the pandemic yet experienced a normal or increased demand for products and services. In addition, 19% reported conducting layoffs, while 15% were forced to furlough full-time employees, and 12% reported layoffs of full-time employees. Additionally, 12% reduced employee salaries, and 15% indicated that they froze salaries.
Looking ahead to 2022, 48% of respondents expect to return to normal rates of employment. While this indicates some optimism, it is worth noting that the majority of respondents, 79%, anticipate salaries will remain the same or increase by 3%. This is very similar to The Conference Board 2022 survey, which anticipates salary increases of 3.9% in 2022.
“As nonprofits continue to show their resilience in navigating pandemic challenges, this survey provides a wealth of relevant data that can help them in their efforts to hire and retain the best talent,” says Amanda McMillian, president and CEO, United Way of Greater Houston. “Among our goals at United Way is to provide resources and support that help local nonprofits in their efforts to provide excellent services with meaningful impact.”
The survey, which is the only local study of its kind providing nonprofit compensation data for Greater Houston, includes wage information on more than 100 specific job titles provided by participants representing nine nonprofit service areas. Survey participants’ organizational budgets range from $500,000 to over $20 million. McMillian notes that this compensation and benefits data can be particularly useful as nonprofits navigate the effects of pandemic-related workforce volatility, a competitive job market, and current inflation challenges that put pressure on organizations to increase wages or provide supplemental offerings to recruit and retain employees.
For more than 30 years, the United Way Wage and Benefits Survey has served as a vital resource for area nonprofit organizations by providing access to current compensation and benefits information critical for budgeting. Nonprofit boards of directors rely on the survey to guide them in meeting IRS due diligence requirements regarding reasonable compensation for nonprofit staff.
“Since the survey indicates our community’s nonprofits expect salaries to remain at current levels, nonprofit leaders will need to continue identifying alternative ways to keep and attract employees in the year ahead,” McMillian added. “Through the survey, we see an increase in the number of nonprofits offering benefits or growing the menu of benefits they offer their employees,” she said.
All nonprofits who participated in the survey receive the results at no cost. For others who would like to purchase the 2021 report, information is available at https://www.associationtrends.com/UWGH-compensation-report.
About United Way of Greater Houston For nearly 100 years, United Way of Greater Houston has brought together diverse partners and approaches to address the complex challenges holding people back. We are a driving force for good that connects our neighbors with opportunities to thrive. We help our neighbors achieve financial stability. We provide services that support the physical and behavioral health of families and youth along with educational services that expand their skills and horizons. We provide a safety net that catches the most vulnerable. We manage every donation with care to make the greatest impact across the four-county region of Fort Bend, Harris, Montgomery and Waller counties. We connect neighbors with help 24/7 through our 211 Texas/United Way HELPLINE. For more information, please visit, http://unitedwayhouston.org.