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🧑🔎💵Nonprofit Tech Workers Earn 33 Per Cent Less Than Tech Workers in Other Industries

Wednesday, 24 July 2024 08:00.AM

- Tech workers in nonprofits earn on average over $30,000 less than tech workers annually in other industries in Canada. Many nonprofits already report not having the necessary skills to use technology already in place. -

New research on the tech workforce in Canada's nonprofit sector shows there is a significant gap in the skill sets needed for workers to succeed in an increasingly digital world. Our research shows that significant pay disparities exist in this sector and is likely a major contributor to the tech talent shortage in this industry.

Findings are according to a new research report, Canada's nonprofit Tech Workforce, under the Futureproofing the Community Service Workforce initiative.

The report analyzes Canadian census data to evaluate the size and composition of the tech workforce as well as pay disparities within the nonprofit sector.

Among the key findings:

1. Only one per cent of nonprofit workers are employed in tech roles compared to five per cent industry average. The relatively small tech workforce in the non-profit sector is likely a combination of lower demand and lower ability to attract tech work.

2. Job for job, tech workers doing the same work for nonprofits earn less. Hiring for tech skills in nonprofits relies heavily on workers willing to take large salary discounts. For example, information system specialists (the most common tech profession within nonprofits) earn 20 per cent less working for nonprofits than they would working elsewhere.

3. The nonprofit sector tends to be more diverse than other sectors when it comes to gender and Indigenous identity. Tech workers in the nonprofit sector are twice as likely to be women compared to the wider economy. Visible minorities are overrepresented in all tech occupations, including tech work within nonprofits. In nonprofits, 39 per cent of tech workers have a visible minority identity, compared to just 28 per cent of all workers in Canada.

4. Indigenous Peoples, women, and visible minority tech workers in nonprofits are all paid less than other workers. Despite increased representation, women working in tech for nonprofits only earn 86 per cent of what men working in tech for nonprofits earn. Indigenous tech workers are similarly underpaid for tech occupations within nonprofit organizations versus non-Indigenous tech workers in nonprofits.

The nonprofit sector is a critical resource to communities across the country and also acts as a major employer in Canada. According to Statistics Canada, 2.5 million Canadians were employed in the sector in 2021, including 618,000 Canadians employed by community nonprofits. Additionally, Statistics Canada estimates that nonprofits account for 8.3 per cent of Canada's economy in 2021.

To date, there has been limited research into the state of the nonprofit sector within Canada. To address this gap, Futureproofing the Community Service Workforce aims to understand and unlock the nonprofit sector's digital skills potential.

A companion study released alongside this report, Digital Skills Demand in the nonprofit Sector, explores the state of digital skills required by all workers (Information Communications Technology (ICT) workers and non-ICT workers) in the nonprofit sector.

SOURCE: Canadian Centre for Nonprofit Digital Resilience

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