How Salary Reports Help Nonprofits Improve 2025 Recruiting Strategies

Employee compensation is one of the largest operating expenses for nonprofit organizations. Getting compensation right can significantly influence organizational stability, fiscal solvency, and regulatory compliance.

Competitive financial compensation and benefits make a huge difference in the difficulty level nonprofits experience in recruiting. The good news is that recent data shows a positive trend toward easier and more stable hiring processes since organizations have adjusted salaries and focused on non-salary perks to become more competitive. A significant reduction in the difficulty level in recruiting is a promising sign for the job market and organizations looking to fill positions with qualified candidates.

Having access to industry salary reports can help organizations gain insight into what is happening outside their own purview. When it comes to talent acquisition and management, this insight can play a key role in budgeting and recruiting success.

Here are five ways a trusted nonprofit compensation and benchmarking report can inform recruiting strategies and improve the likelihood of hiring and retaining talented staff.

1. Make a viable first offer.

Whereas sixty-five percent of nonprofit executives surveyed in late 2023 for the Career Blazers Nonprofit Compensation and Benchmarking Report said the top reason they were losing candidates is that candidates’ salary requirements exceed the pay range offered, that number dropped to forty-six percent heading into 2025. Salary reports can provide insight into the typical pay range by organization size and by role, helping you attract qualified candidates with competitive pay (especially if you are in a state where pay ranges must be published). Understanding market rates helps management proactively create an enticing rewards strategy, especially if it is tough to meet market rate salary ranges.

2. Shorten the hiring window.

Thirty-six percent of organizations have vacancies that go unfilled for 30 – 60 days, with an additional thirty-five percent reporting a 60 – 120 day vacancy rate. This is a seven point decrease in the job vacancy rate over twelve months shows a positive trend toward easier recruiting and hiring processes. Extended salary negotiations delay the hiring process, results in the loss of talented candidates, causes more frustration for employees who are covering for staff shortages, and increases recruitment costs.

Shortening the time-to-hire window is a critical objective, especially for high demand positions. As a clearer understanding of post-pandemic needs has emerged, more directed, effective recruitment processes have been implemented. Organizations have adjusted salaries and focused on non-salary perks to become more competitive, and implementation of the right work/life balance structure has been helpful in streamlining recruitment. Furthered adaptation of technology and AI driven tools may speed up the screening processes, enhance job descriptions, and social media posts.

3. Include for-profit companies in the search for top talent.

Many nonprofits hire from outside the nonprofit sector, especially for CEO, financial professionals, HR, IT, and other positions. National and regional salary reports can help you understand and benchmark the compensation ranges required to compete effectively for talent by sector, geography, experience and skill levels.

In fall 2024, sixty-six percent of respondents to Career Blazers nonprofit compensation survey reported mission alignment as one of the top three most important factors in hiring, a drop of only one percent from the previous  year. The Bridgespan Group reports those who move from corporations to nonprofit organizations frequently cite benefits such as making a difference, collaborating with passionate colleagues, and the opportunity to grow professionally. For many “bridgers,” the desire to make a difference in the world marks the beginning of their journey to the nonprofit sector. Research from the McCombs School of Business at the University of Texas at Austin highlights “social impact framing” and suggests it might also influence whether job candidates negotiate on their salary or not.

4. Devise creative benefits.

Regardless of your best intentions, there may be times when the salary budget falls short of industry standards, especially when fundraising support is lower than normal or environmental conditions require excessive service delivery. In this case, the salary ranges included in nonprofit salary reports can help you offer the best compensation you can afford, while filling in gaps with creative, less costly and/or high demand rewards and benefits, such as offering work/life flexibility, professional development, skills training, conference attendance, etc. as part of the total package.

5. Plan for turnover and attrition.

Aside from employee turnover, promotions and retirements necessitate ongoing hiring. A smart talent strategy anticipates these personnel changes, allowing HR to plan for them in the coming year. As part of talent planning, nonprofit salary reports can help organizations budget for filling those vacancies with appropriate compensation and fewer surprises.

More than just showing you where your organization stands relative to the rest of the industry, salary reports provide insight that can help you plan a smarter budget, improve retention, and secure the best talent to fulfill your mission, especially in today’s competitive marketplace.

Download the complimentary Career Blazers 2025 Nonprofit Compensation Practices and Benchmarking Report to help you navigate hiring and retention of key talent. The report shares the median salary ranges by job title for nonprofit organizations by budget size (under $2M to over $250M). The focus is primarily on senior and mid-level executive positions. As a manager, this information can help you navigate hiring and retention of key talent. As a candidate, it provides a guidepost for realistic market expectations.