Human resource report paints gloomy picture for NGO sector jobs

What you need to know:

Local NGOs have found it difficult to attract funding due to donors such as the European Union cutting back on aid following tough economic times.
Proposed legislation such as capping the amount an NGO can receive from foreign donors to 15 per cent is also worsening the industry outlook.
Human resource managers at the same time said talent retention and attraction is becoming a major issue and that companies are now offering more than cash benefits to employees.

Low levels of donor funding will result in layoffs in the civil society sector even as most employers expect little change, a human resource report says.

The Talent Report 2015 by Corporate Staffing Services (CSS), a human resource consultancy, says reduced donor funding will force some non-governmental organisations (NGOs) to undertake cost-cutting measures, including layoffs.

Local NGOs have found it difficult to attract funding due to donors such as the European Union cutting back on aid following tough economic times.

Proposed legislation such as capping the amount an NGO can receive from foreign donors to 15 per cent is also worsening the industry outlook.

READ: NGOs jittery about Public Benefits Organisations Act

“The majority of employers are looking to keep the number of staff at the same level, while an equal number expect an increase in the number of staff in the next quarter. Only a small portion of the employers anticipate staff layoffs, especially NGO sector due to lack of funding,” says the report.

The firm carried out a survey between January and February this year and sought views from human resource managers who are members of the Institute of Human Resource Management (IHRM Kenya).

Most of the managers surveyed came from the private sector (52 per cent), 32 per cent from the public sector while the NGO sector contributed 16 per cent of the respondents.

The report said 80.2 per cent of managers surveyed expect staff levels to either increase or stay the same, 11.4 per cent expect job losses while 7.77 per cent are unsure of whether their work force will change.

Human resource managers at the same time said talent retention and attraction is becoming a major issue and that companies are now offering more than cash benefits to employees.

“This means paying market rate and where possible having other incentive programmes and benefits such as medical, pension and training, as well as rewarding performance and improving on employee relations by involving staff in decision-making,” said IHRM Kenya executive director Samson Osero.

In cases where companies get the right people, getting them to leave jobs is also difficult since employees are using offers to get better deals from their employers.

Even with the large number of applicants, it still proves difficult to find top talent with positive attitude towards work with 45.3 per cent of the respondents saying the candidates who apply for vacancies are of “poor quality” and that most of them do not fit in the positions.

The managers said some 34.3 per cent of the applicants accept job offers then later withdraw as they use job offers as a bargaining tool with current employers to secure improved counter offers.

CSS chief executive Perminus Wainaina said the fall in fuel prices was however expected to increase demand for goods and services which would in turn lead to higher production in some sectors and create additional jobs in certain sectors.

“This will translate to more job opportunities in production and distribution sectors.”