NFP CEOs share top skills in short supply

Sector leaders say upskilling in these specific areas is one way to help address the current jobs crisis and increase staff retention.

Three-quarters of NFP leaders are feeling the adverse effects of widespread skills shortages according to a new report, but upskilling employees in specific areas, including problem solving, adaptability and data analysis, may offer a solution.

Despite efforts made at the recent Jobs and Skills Summit to lift workforce participation, there is still no short-term remedy to accessing a much-needed supply of talent. 

This, coupled with a record low unemployment rate and rising cost pressure on wages, has created a perfect employee market and NFPs are struggling to remain competitive.

One key fix offered in the 3rd annual not-for-profit CEO survey, is a targeted upskilling strategy that applies a role-based focus, shifting away from a blanket approach.

See more: Why now is the time to think about upskilling your employees

According to the report, NFP leaders extract more value from upskilling when they strike a balance between soft and technical skills. 

Problem solving, adaptability and resilience were identified as the soft skills NFP CEOs believe their employees need most. Meanwhile, training in new software and programs, data analysis, teamwork and collaboration are seen as advantageous technical and digital skills.

Interestingly, cybersecurity and privacy skills are not seen as a priority, despite the vulnerability of the sector to cyber attacks.

NFPs that invested in upskilling saw significant organisational benefit, including a stronger workplace culture and engagement (80 per cent), higher productivity (77 per cent), greater organisational growth (72 per cent) and a rise in innovation (63 per cent). Additionally, 58 per cent of leaders cited upskilling as an effective talent acquisition and retention tool. 

Barriers to upskilling include the size, resourcing and capacity of a NFP.

There appears to be a significant disparity in the ability for smaller and larger NFPs to invest in uspskilling their employees. More than half of CEOs from small NFPs (annual revenue under $500,000) did not provide employees with upskilling to help their workforce adapt to the impact of new technology over the past year. In comparison, almost 90 per cent of CEOs from large NFPs (annual revenue over $3 million) provided digital training to their employees.

See more: Smaller NFPs struggling to upskill their workforce

Instead, many NFP leaders are relying on outsourcing, due to internal skills shortages and difficulty accessing a consistent volunteer base. Just over half of CEOs (51 per cent) believe that outsourcing some or all non-core activities including finance, human resources and legal services, would provide value to their organisation – an increase of 8 per cent from 2021.

Belinda Louis, partner of outsourced finance at PwC Australia, commented in the report that many NFPs struggling with the current economic and employment climate have used outsourcing as a critical means to continue their operations.

“We have seen a range of NFPs really grapple with these issues and as a result, are increasingly turning to outsourcing solutions to alleviate resource constraints and optimise processes allowing for greater focus on mission,” she said. 

PwC’s 3rd annual not-for-profit CEO survey includes insights from over 230 leaders in the NFP sector across Australia and New Zealand.