Volunteers are indispensable for non-profit organizations, but dissatisfaction with executives can reduce volunteer engagement. PhD research by Wim Maas has shown that high compensation levels for executives adversely affect volunteer engagement when the compensation details receive media coverage.
Wim Maas’ PhD research shows that fewer volunteers will be likely to work for organizations with excessive executive compensation. Media attention plays a crucial role. Wim: "My study shows that volunteers react when they are informed through the media of high executive compensation.". "Without media coverage, volunteers seem to be unaware of salary levels."
Small organizations and culture sector more sensitive
This does not hold equally for all’organizations. In small non-profit and charity organizations and institutions, media coverage of high compensation levels often lead to a clear reduction in the number of volunteers. "Volunteers in small organizations seem to have strong moral expectations," Wim concludes. "In these organizations, fairness is perceived as very important."
A remarkable outcome is that the art sector is particularly sensitive to negative reactions, even without media coverage on compensation. "Volunteers in this sector seem to have higher expectations of how resources are spent or they are better informed about salaries."
Role of the news media
Wim emphasizes the importance of the news media in disseminating information on remuneration practices. Although American salary data are publicly available through tax filings, American volunteers appear not to react unless this information mentioned in the media. "The media function as an important bridge between organizations and their volunteers," the researcher states. "Without media coverage, many volunteers remain unaware about compensation levels."
Implications for non-profits
The outcomes underline the need for non-profits to be careful in their compensation strategies. Transparency and avoiding negative publicity are essential in protecting the relationship with volunteers. It is also important that organizations proactively communicate about the relationship between executive pay and their social mission.
For non-profits that rely on volunteers, an ethical compensation strategy and open communication are essential in retaining volunteer engagement. As the researcher concludes: "Volunteers contribute labor and they expect a fair and equitable allocation of resources by the organizations they support."
