How active is the executive search for non-profits right now?
The not-for-profit sector has been highly active in executive search throughout 2024. Like any other sector, it is driven by the need to maximize impact, secure funding, and effectively engage with all stakeholders, ranging from volunteers to government bodies. In the Australian market, we have seen particularly high activity in three key areas: aged care, childcare, and disability services. These sectors face funding pressures and regulatory changes, requiring leadership that can identify opportunities for growth, including merger and acquisition activity.
Why is the non-profit sector attractive to senior executives perhaps looking to steer away from the for-profit sector?
The not-for-profit sector is increasingly attractive to senior executives from commercial backgrounds because they bring valuable skills and experience while finding greater meaning and purpose in their careers. Historically, executives transitioned to the non-profit sector at the end of their careers to give back. However, this trend is shifting, with individuals now seeking careers that align with their values earlier in their professional lives. This is especially true for those with expertise in M&A, digital marketing, and operational leadership.
Do you usually present candidates from both for-profit and non-profit backgrounds when gathering talent pools?
When presenting candidates for leadership roles and board positions in the nonprofit sector, we draw from both not-for-profit and commercial backgrounds. A key characteristic we look for is evidence of experience and commitment to the sector, such as volunteer work or serving on a nonprofit board. Leadership in a not-for-profit setting is increasingly complex and requires resilience and the ability to engage with a diverse mix of stakeholders. Managing a large, complex non-profit is no different from running a major commercial enterprise.
What challenges do non-profits face in 2024?
In 2024, the not-for-profit sector faces several challenges. The primary challenge is workforce-related: attracting and retaining skilled staff, while managing volunteer engagement amid a decline in volunteering. To address this, not-for-profits are seeking innovative marketing and outreach strategies. This occurs against a backdrop of government funding constraints and a significant decrease in donations due to economic uncertainty. Not-for-profits are also leveraging technology to gain attention in Australia. Additionally, significant regulatory changes in areas like childcare and aged care, along with increased compliance requirements, are straining already scarce resources.
