When you have an Ivy League education, you need a better career option
You may be in a tough job market, but a new report shows that many people in academia are finding that they are better off working for a nonprofit organization than for a traditional employer.
The Center for Workforce Innovation and Policy (CBWIS) conducted a survey to see how many Americans have been making the switch from traditional employers to nonprofits over the last decade.
The findings show that the nonprofit sector is gaining ground on the traditional workforce and that those who are making the transition are not necessarily looking for the same paychecks or benefits as the traditional sector.
The study also found that the average annual income of a nonprofit worker has grown from $38,857 to $58,769 in the past decade, a 17 percent increase.
That increase comes despite a nearly two-decade-long decline in median household income.
The nonprofit sector has gained ground on traditional sectors over the past few years, especially in terms of compensation and wages, as a result of the rise of the Internet, digital media, and digital startups, according to CBWIS.
That growth has led to the hiring of a growing number of non-traditional employees in the nonprofit and other sectors.
This is not surprising to the Center for Talent Innovation, a nonprofit research and education organization.
“We’ve seen these shifts for quite a while,” said Elizabeth Scholes, executive director of CBWES.
“We think the shift is more than just the increase in compensation for workers in the traditional, traditional sector, but also the growth of new types of workers.”
Scholes said that the transition to nonprofits is not necessarily a sign of a better job market for the people who have been there, but rather an indicator of people becoming more self-reliant.
“If they feel like they’re not getting the same kind of support or the same types of opportunities as their traditional job, they’re going to make the switch,” she said.
The report also found the shift in work-life balance is not just a matter of people making the change, but is also a sign that the organization has taken into account a person’s social and professional skills.
“The shift is not really about the pay, but about the ability to support yourself,” Scholes said.
Scholes pointed out that it is not uncommon for nonprofit organizations to have a larger staff of full-time employees than the typical full-service nonprofit.
“People are able to be part of the workforce in the non-profit because of the increased autonomy and flexibility,” she added.
“When you have a nonprofit, you’re not just looking at the workforce.
You’re also looking at people’s ability to participate in the community.”
The report found that while the number of nonprofits is growing, the size of their staff has decreased.
The average number of employees for nonprofit and full- service nonprofits is now roughly 2.5 times the number for the full-scale sector.
The number of full time employees for nonprofits has also increased from 5.4 employees per full-staff position to 6.4 per full time position, while the average for full- and nonprofit-staffed nonprofit firms is 1.9 and 1.4 times larger, respectively.
As the percentage of nonprofits in the U.S. continues to decline, there is more demand for the work of people who are not in the workforce, Scholes noted.
In 2016, the Center found that more than half of the work force of nonprofits was women, while fewer than a quarter were minorities.
However, while a majority of nonprofits were in the top 20 percent of the country in terms in terms the size and diversity of their workforce, women and people of color make up a significant portion of nonprofits that were underrepresented.
The average number working full time for nonprofits fell from 4.1 percent in 2010 to 3.4 percent in 2016.
In contrast, the number working part time for nonprofit-sector firms increased from 3.2 percent to 4.3 percent.
While the majority of organizations are increasing the number and size of full and part time employees, some nonprofits are shifting to a more flexible approach.
“There is no question that part time is a necessary step, and part-time is an option, but that the work should be done at the level of the individual,” Schumps said.
“This is a time for people to really figure out how they are going to support themselves.
People should be able to work remotely, but they should be doing it with the same level of support as their full- time colleagues.”
Read the full report at the CBWis blog here