how can NFP’s compete with the corporate world for technology talent?
It’s no secret that the Australian not-for-profit (NFP) sector faces a major challenge in attracting and retaining technology talent. This is largely due to the perception that it cannot compete with the high salaries of large for-profit companies, such as Financial Services, Professional Services and HiTech competitors for talent. However, in this article I would like to argue that this hypothesis is too simplistic. The technology talent market is shifting both in Australia and globally. Tech professionals are increasingly attaching huge value to factors like job security, purpose, and a healthy work environment over high compensation alone. As well as a lack of awareness of the huge benefit available through salary packaging.
This article outlines a three-pronged strategic approach for Australian NFPs to build a compelling Employee Value Proposition (EVP). This involves:
- Leveraging salary packaging to provide tangible financial benefits.
- Cultivating a modern, people-centric culture based on flexibility and psychological safety.
- Showcasing the mission-driven nature of their work as a powerful motivator for social change.
By adopting the proposed framework, NFPs can position themselves as a strategic and secure career choice for modern Australian tech professionals, helping them attract and retain the talent needed to drive digital transformation and increase social impact.
This approach will also help overcome the common frustration I hear from CIO’s and Tech Leaders in the NFP sector, ‘Candidates don’t understand the considerable financial benefit available through salary packaging. We feel like we have to promote the tax benefits up front, or candidates won’t even consider our organisation as an employer of choice”.
1. the evolving australian tech labour market: a nuanced perspective
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1.1 deconstructing the "wage gap"
The Australian tech sector is a cornerstone of the national economy, with a high demand for skilled professionals. While some high-profile roles, like Chief Technology Officers or Chief Data Officers, can command salaries over $350,000, this creates a skewed perception. The average tech professional in Australia earns a more modest $90,000 to $140,000 annually. Although we have seen considerable post Covid wage increases across sectors.
NFPs don't need to compete with the top 1% of earners; their real competition is with the vast majority of the workforce. By understanding this, NFPs can reframe the challenge from an insurmountable financial deficit to a more manageable strategic one.
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1.2 the shifting currency of talent: beyond remuneration
The Australian tech workforce is re-evaluating its priorities. Recent mass redundancies in the "New Tech" sector over the course of the last 2 years (including the very public redundancies in the Financial Services, Tech and Professional Services sectors this month), have increased concerns about job security and workplace culture. This has led many tech workers to seek environments that offer greater stability and a healthier professional life.
NFPs can capitalise on this by positioning themselves as a "purpose-driven sanctuary"—a stable, secure, and values-aligned alternative to the high-pressure, high-risk environments of the corporate world. The ability of NFPs to offer security and a commitment to employee well-being is a powerful, non-financial attraction lever. “Job Security” in the current economic climate, ranks consistently within the top 3 drivers for candidates within Randstad’s annual employer brand research.
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1.3 the NFP sector's inherent strengths
The Australian NFP sector is a significant part of the economy, employing over 1.3 million people. Its core strength lies in its mission and purpose, which naturally attracts staff who are passionate about creating positive community impact. Beyond mission, NFPs often have a human-centric culture where employees feel "supported, respected and valued." Unlike for-profit companies, which may struggle to authentically replicate this, NFPs' mission and culture form a powerful basis for a modern EVP. Again, ‘feeling valued’ and “aligned to purpose” rank very highly in Randstad’s annual candidate surveys.
2. the new NFP employee value proposition: a comprehensive framework
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2.1 leveraging the power of salary packaging
Salary packaging is an underutilised but potent financial tool for NFPs. It allows employees to use a portion of their pre-tax income to pay for personal expenses, such as rent, mortgages, or groceries. This reduces their taxable income, leading to a higher net salary. For example, a professional earning $120,000 can salary package the maximum $15,900 cap, reducing their taxable income and saving thousands of dollars in tax.
To make this a differentiator, NFPs should do more than just list it as a benefit. Salary packaging really needs to be promoted, from the start of the candidate engagement process, as a key, unique EVP offering. We need to proactively educate candidates on its value, using clear examples (a simple breakdown/comparison of the maths behind the benefit), to demonstrate how it translates into greater disposable income. This reframes the conversation and directly addresses the perceived salary gap.
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2.2 cultivating a modern, people-centric culture
Hybrid and remote work are now non-negotiable for most tech professionals. NFPs can adopt a "human deal EVP," which acknowledges that work is a subset of life, not separate from it. This cultural commitment must go beyond policy and extend to fostering psychological safety, where employees feel they can speak up without fear of punishment or humiliation. This builds a high-trust, collaborative environment that is highly attractive to talent.
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2.3 the purpose premium: quantifying and communicating mission-driven impact
The most powerful lever for NFPs is their mission. This is the "purpose premium," where the intrinsic value of the work outweighs the extrinsic value of a higher salary. The days of technology being considered as "the back office" are gone. Technology in the NFP sector is the core strategic tool for mission delivery. The Australian Red Cross for example, used digital transformation to increase donor engagement by an astounding 1300%. I believe that by showcasing these clear, tangible impacts, NFPs can make their EVP authentic and difficult for for-profit competitors to replicate.
3. strategic talent acquisition and retention: a playbook for NFPs
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3.1 building a differentiated employer brand
You only have to jump on a large corporate careers page to experience the ‘slick corporate employer’ feel. But for NFP’s it’s about being different, building an employer brand based on authenticity rather than corporate benefits.
This means leveraging genuine, personal testimonials from employees to tell the human stories of the organisation and its impact. I can say with confidence, my 20 plus years in recruitment has taught me that stories are the most powerful sales tool when marketing a job and organisation. This transparent approach attracts candidates who are aligned with the organisation's values from the outset, leading to better retention. Low-cost, high-impact channels like a website's career section and social media are ideal for sharing these stories. I would also like to highlight the importance of utilising multiple, concurrent social media channels. In some cases our clients are using promotional channels such as TikTok and Instagram, as well as LinkedIn, Facebook, Indeed etc. Remember, your average workplace in Australia is made up of typically four different generations. Each accessing content in very different ways.
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3.2 targeted recruitment and sourcing
NFPs should use a dual-channel recruitment strategy that combines broad reach with a targeted approach. It is crucial to partner with recruiters who understand the NFP sector and have a network of mission-aligned professionals. These specialised partners can proactively source candidates who are motivated by more than just compensation, ensuring the right fit.
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3.3 investing in growth: professional development as a retention lever
In a fiscally constrained environment, professional development is an NFP's most powerful retention tool. Tech professionals are driven by a need for continuous learning. By offering clear career pathways, mentorship, and opportunities for upskilling (e.g., subsidising certifications or supporting conference attendance), NFPs can meet this core need. This investment offers a dual return: it increases employee loyalty and enhances the organisation's long-term capabilities.
4. the forward-looking NFP: navigating disruption and opportunity
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4.1 the next wave of in-demand skills
The demand for skills like AI, Cybersecurity, Data Analysis, and Cloud Computing is growing rapidly. For NFPs, these technologies are essential for mission sustainability and amplifying impact. NFPs can attract talent with these skills by mapping them directly to mission-driven applications. For example, a data analyst can be drawn to the challenge of optimising resource allocation to better serve the community, which is far more compelling than simply analysing corporate data.
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4.2 the role of board and leadership
A successful tech talent strategy is a strategic imperative that must be driven from the top. Evidence shows that a board-level understanding of technology is no longer a luxury but a prerequisite for mission delivery. By appointing technology-focused leaders to executive committees, NFPs signal to the market that technology is a core strategic pillar, not just a back-office function. The greatest risk is not a lack of talent but a lack of digitally-literate leadership.
5. conclusion: a call to action for australian NFPs
To overcome their perceived disadvantage, Australian NFPs must construct a more compelling and authentic EVP. The key recommendations are:
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reframe the financial narrative:
proactively communicate the tangible benefits of salary packaging.
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formalise a people-first culture:
leverage the mission-driven nature to offer flexible work and psychological safety.
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elevate the purpose premium:
showcase how technology enables the mission.
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invest strategically in talent:
use specialist recruiters and position professional development as a core retention strategy.
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cultivate digitally-savvy leadership:
ensure technology is represented and incorporated into the strategy at the highest levels of the organisation.
In summary then, the message is clear. NFPs can attract and retain skilled tech professionals.
It’s all about a clear, concise, compelling EVP promoting the NFP sector’s unique value proposition as an employer!