Ending Low Pay in the Social Impact Sector

Designing Tomorrow: Creative Strategies for Social Impact

Low pay the social impact sector is reaching a critical point.

Leaders and workers alike are grappling with the harsh realities of compensation in an industry driven by passion and purpose. But at what cost?

In the latest episode of Designing Tomorrow, Eric and Jonathan dive deep into this pressing issue, exploring:

• The cultural shift around work-life balance and its impact on the sector

• Why attracting top talent is crucial for solving intractable social problems

• The hidden costs of underpaying staff, from turnover to missed opportunities

• Practical solutions for leaders and staff looking to improve compensation

They share personal stories and hard-won insights from years in the trenches, challenging conventional wisdom about what's possible when it comes to pay in nonprofits and social enterprises.

Whether you're a seasoned executive or just starting your impact career, this episode offers a fresh perspective on one of the sector's most persistent challenges.

Tune in now to join the conversation and learn how we can build a more sustainable, equitable future for social impact work.

Episode Highlights:

[00:00] - Introduction to pay inequity in the social impact sector and its consequences for mission-driven organizations.

[01:00] - Jonathan shares a personal story about discovering pay disparities at the Seymour Center and his decision to raise wages for key staff.

[03:02] - Discussion on the exploitation of passion in nonprofits, where employees sacrifice their wellbeing for the cause.

[06:16] - Eric and Jonathan examine why low pay stigmatizes discussions about compensation and its damaging effects on organizational impact.

[11:05] - The cost of turnover and how paying fair wages can prevent talent loss, increase organizational stability, and improve mission outcomes.

[16:04] - Strategies to address compensation issues, including prioritizing key performers, normalizing pay transparency, and focusing on quality over quantity.

[25:17] - The importance of appointing an executive sponsor to lead pay equity initiatives within an organization.

Resources:

• David C. Baker - https://punctuation.com/
• Article - How Your Nonprofit Can Escape the Overhead Trap Once and for All
• Article - Philanthropist MacKenzie Scott Proved Unrestricted Funding Works. Follow Her Lead.
• Whitepaper - Going All In: A Digital-First Guide to Sustained Nonprofit Fundraising

Listeners, now you can text us your comments or questions by clicking this link.

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We love hearing feedback from our community, so please email us with your questions or comments — including topics you’d like us to cover in future episodes — at [e-mail]

Thank you for all that you do for your cause and for being part of the movement to move humanity and the planet forward.

Kapitler

1. Pay Discrepancy in Social Impact (00:00:00)

2. Compensation and Performance Based Pay (00:14:04)

3. Strategies for Equitable Compensation in Organizations (00:21:47)