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Sector Convergence

The historical gap of contrast between the private (PS) and non-profit sectors (NP) continues to narrow. Recent evolutions within each sector have led to a more aligned trajectory. For example, the emergence of corporate social responsibility/corporate citizenship efforts on the PS side has led to an increased awareness of NP operating conditions, expertise and challenges – which, in the spirit of capitalism, presents new business opportunities. These corporate citizenship efforts have also influenced workforce engagement levels. Employees feel good about their employer’s community impact which influences job effort.

Meanwhile, the growth in social enterprises from within the NP sector holds the promise for broader cause/mandate awareness, sustainable program funding alternatives and new career advancement possibilities.  Technical roles, like Quality Assurance or Data Management for example, have very similar job duties across the two sectors.

As the gap continues to narrow, this should lead to a greater flow of labour across the sectors.  As this inter-sector labour market grows we will likely see an increase in NP wage rates. Change of this magnitude though will take some time. So the work of a Compensation Specialist will continue to have an intra-sector labour market focus for some time to come.

Which other human resource specialist is actively building bridges across the two sectors? I can think of at least 2.


By Dave Nanderam, Managing Partner, ASSOCIUM Consultants. Through our collaborative approaches, innovative HR products and customized advisory solutions we impact four leadership priorities: managing risk, driving productivity, strengthening talent capabilities and supporting your bottom line. Let’s connect to find out how ASSOCIUM Consultants can help your organization.

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