Wednesday, October 14, 2009

Job security in the not for profit sector

As most of us are nearing the end of our degree I thought I would comment on what I have found in doing my placement in a not for profit company. Since the Global Financial Crisis (GFC) we have lost a few of our major sponsors and as our major funding contract has been reviewed by the government and we are only being given half of the funding of previous years, the company has been making significant cut backs in the staffing department. In the last 2-3 months that I have been at the organisation, about 15 people Australia wide (which equates at around half the staff) have been asked to leave, and have with only a weeks’ notice. From what I understand of the organisations operations and the way it has been running over the last few years, there was an excessive amount of employees for the amount of revenue they were bringing in so this is understandable why this would happen in these circumstances.

It was the way these people were let go that made me unsure whether there is enough security in the not for profit sector which made me question if I would be comfortable working in the industry. Most of the employees are on a contractual basis and therefore were let go without much warning. I’ve seen this become a worry to remaining employees who have started looking for alternative employment as they do not feel secure in their positions. Because of this I don’t believe the situation was handled very well as now not many employees have much trust in their employer. I think if they were kept in the loop and given some warning that this could be happening in the coming months, it would have not been such a shock when so many people started to leave.

Although all these redundancies have happened, there has been no one out of the PR department that has left. While some ways I think this is a good decision, it’s confusing as to why they have done this when they have laid off the entire business development department who are the ones who brought the sponsorship money into the company. It will be interesting how the PR department now have to change the way they operate as they will not have as much money to spend on campaigns and will have to really get back into the foundations of PR by getting coverage and increasing awareness for close to zero money.

Over the next few years I believe PR in the organisation is going to be rather challenging with the insecurity of their positions and little funds to work with, but hopefully the team will be able to keep the company going strongly and maintaining support.

I’d love to hear from anyone else doing their prac in the not for profit sector who have had similar of different experiences.

5 comments:

RiaR said...

Hi, Thank you for your insight into the not-for-profit organisation you are completing your placement with.

I too am at a not-for-profit organisation, but one which is on a much smaller scale to your company. At my organisation there are only two paid positions, one deals with the volunteers and the other is the office administrator who deals with day-to-day office problems as well as the public relations for the organisation. As they are the only people employed and the organisation does not have a public relations team as such, they do not face the same situtation as the employees at your company.

I believe what you were talking about in terms of job security and people not having much faith in their employer is true of any person who may be presented with the same sitiation, whether they are in a for profit organisation or a not-for-profit organisation. However, because a not-for-profit organisation relies so much on the donations they recieve and do not generate revenue as such, they are hit a little harder by Global Financial Crisis, and for most, times are already tough.

I completely understand the company having to reorganise their PR budget, and working with a small budget, especially when you are used to a larger one, is hard as I have found.

Hope everything goes will with the rest of your placement

Ria

Sam said...

Thanks for such a insightful and noteworthy comment. I found your comment to be interesting because I was also working for a not-for-profit organization and thoroughly enjoyed my time there. I was even eager to apply as a full-time staff there once I graduate.

Being a not-for-profit (NFP) gives room for:

PR and its Versatility
One of the most important thing is when we're in PR for an NFP, we have to know that our role is different as compared to being in a PR consultant or a profitable organization. The work there is more focussed on increasing awareness, media relations and internal relations. Most of the time in NFP, i found myself doing many things that were not even PR related like helping out with some of the IT troubleshooting and designing pamphlets. Although this is a good practice for us PR people, as we can gather the skills of doing such things. Such versatile or should i say 'volatile' environment only encourages us to focus more on what is important first, getting the funds or publicity? I know it can be hard as we may find ourselves busy with all the upcoming events and having zero money to host them. This is where our role in getting sponsorships and funding skills as PR practitioners come in.

The organization that I did my placement with had a department called Fundraising & Public Affairs. There were only 3 of us working - 2 full time + 1 intern. Imagine the stress at times when the events kept coming and how well the organization's account was in our hands as well. I understand your part about having too much to accomplish and I agree that sometimes these areas would be better dealt with by having one or two more people.

Thanks again.

Dave De Garis said...

I think this post is fascinating, and while I know I cant give it justice in the 3 minutes I have to write this, I think it is vital for PR students like us to discuss nonetheless. I think the non-for-profit industry is a very intersting and certainly honourable industry to work in, however in terms of up-coming professionals such as ourselves, I think it is also important for us to weigh up our options sensibly. I would love to work for a non-for-profit organisation, however I have I think sub-consciously avoided it because I do not see huge growth potential, whereas with other industries there is a much larger ladder to climb. I make no excuses when I say i am here to make money. While I plan to do so without compromising personal morals or ethics, I think that the onlyy way to do that is to join perhaps more 'ruthless' industries than those that rely on individual donations and government grants. When I hear of job insecurity in the non-for-profit sector, it doesn't surprise me. In the end, we are in a capitalist society that provides incentives to pursue more lucrative causes. But shit, if I cant find a job in 6 months, guess which sector i am going to b e asking for a job?! ;)

Anonymous said...

This is a great topic and indeed very relevant.

I agree with everyone, and found Sam's points regarding the ever-changing role of a PR practitioner within a NPO very true. Working in an NPO there have been countless tasks I have undertaken such as graphic design and general housekeeping (grrr event kits) that I wouldn't always view as being an intergral part of public relations practice. Although as Sam acknowledged, doing these tasks only gives us more oppurtunities and skills.... All i can say is thank god I studied photography as well - I strongly suggests people wanting to work in PR do courses in the Adobe suites!!

Taking into consideration Dave's very valid point regarding people over looking NPOs in favour of higher earning jobs in larger companies, I believe this stigma or conception really disadvantages NPOs. At my organisation, the general manager recently resigned after being head hunted (he says) by BHP. My manager said that while he was only around for a few short months he accomplished so much and brought so much knowledge and insight to the company. With such a high turn over in staff in NPOs, it makes it really hard to achieve.... well much at all. Losing such valuable staff to large profiting companies definately makes business hard for NPOs, and with so much good work to be achieved in these organisations, its definately something a budding PR practitioner needs to take into account.

A stepping stone, or a career or rewarding and fulfilling work?

Anonymous said...

I worked for a non-profit organization as well and can completely understand where all you guys are coming from. I think one of the most common thing that occurs with working with a non-profit organization is the lack of staff. Staffs are always coming in and works for a few months and leaves.

Due to that I as well did many things that were not really related to PR but I had fun doing it though because I got to learn may things in the process.

Working in PR for a non profit organization in a lot of people's mind might not be a profession due to the budget. But I think that it matters more than just making money for ourselves because we are working for a greater cause than that.

Thank you.