More than half of charities have vacancies and most of them are struggling to recruit new staff to meet rising demand for their support, a report is warning.
The rise in vacancies is “taking a heavy toll” on staff, with just under one in four (24%) charities saying burnout is leaving them facing a battle to retain employees. This proportion rises to 34% among large charities.
This comes as almost eight in ten (79%) charities say demand has increased in the last three months.
The findings have emerged in a study carried out by think tank Pro Bono Economics and Nottingham Trent University’s National VCSE Data and Insights Observatory.
This found that 54% of charities have vacancies. Of these charities more than eight out of ten (83%) say they are finding it difficult to recruit amid rising demand for their support.
Almost half (46%) of charities with recruitment challenges have had to halt their operations. Out of all charities a similar proportion do not expect to meet surging demand over the next three months.
“This recruitment crisis and the ongoing cost of living pressures pose a considerable challenge to the financial resilience of the sector, which is yet to recover from the unprecedented impact of the pandemic,” warns Pro Bono Economics.
Recruitment is one of the top three concerns of large charities, with 43% saying it is one of their biggest issues as they battle to meet demand.
Action has already been taken to attract staff, with more than half of charities hiking salaries and one in five investing more in recruitment.
Challenges include a lack of suitably skilled applicants according to more than half (55%) of those struggling to recruit. A similar proportion (47%) warn of a lack of people interested in roles on offer, while 45% blamed a general lack of applicants, found the report, called Running hot, burning out.
New report out with @NBS_NTU this morning!
— Pro Bono Economics (@ProBonoEcon) March 30, 2023
Read how
⚖️ Demand has risen for 4 in 5 charities
🕴️♀️ 7 in 10 charities trying to recruit to meet rising need are finding it difficult
✋46% with hard-to-fill vacancies have had to pause some operations https://t.co/MwRwGxAg4Q
“Elevated demand for charity support is ramping up further still as the cost-of-living crisis continues to bite, alongside a doubling down of effort by an already stressed charity workforce,” said Pro Bono Economics chief executive Matt Whittaker.
“It is an unsustainable balance with very real consequences both now and over the longer term.”
He added: “In the here and now, critical need is going unmet across the country and many of those working for charities are coming under considerable personal strain, risking burnout and subsequent time away from work to recover. Not only is this terrible for the workforce’s wellbeing, but it poses considerable challenges for charities given the recruitment crisis identified in our study.
“Further out, we can expect to see those missing out on support today presenting more acute – and more costly – challenges. And, having operated in crisis mode for such a sustained period, many charities risk finding themselves unable to respond with full effectiveness to the new challenges that will emerge over the coming decade.”
Whittaker acknowledged Chancellor Jeremy Hunt’s announcement in his spring budget to hand the charity sector £100m.
“But too many metrics are still heading in the wrong direction, and our survey findings make it clear that the reality faced by those at the sharp end of society remains extremely challenging,” he said.
Professor Daniel King, director of the National VCSE Data and Insights Observatory said: “The charity sector is facing a severe recruitment crisis, leading to staff burnout and serious gaps in service provision at a time of soaring demand. More than half of the charities we surveyed have vacancies, and four in five of those organisations are struggling to recruit.
“The crisis is also causing workforce gaps and stopping services for half of those charities with vacancies. Our survey reveals that close to eight in 10 charities have experienced a rise in demand over the last three months, and 73% of them are facing rising costs.
“This recruitment crisis, coupled with the ongoing cost of living pressures, poses a considerable challenge to the sector's financial resilience.”
Recruitment challenges
Earlier this month it emerged that half of charities in England are having to raid their reserves to meet running costs. Charities in the North of England are the most likely to use their reserves, found the analysis by Charities Aid Foundation.
A separate study published in December last year, by University of Durham based St Chad’s College, found that recruitment problems are particularly acute for charities in the North East of England.
Further research published last December, by IVAR, called on funders to do more to help charities tackle recruitment and retention challenges during the cost-of-living crisis. Funders are being called on to offer multi-year unrestricted funding to support the sector.
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