Future proofing: automation and outsourcing opportunities

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In a climate where demand for services is largely up and revenue and volunteering typically down, greater organisational growth emerged as a top outcome of upskilling programs. Recognition of this increase on last year indicating that forward-thinking leaders are making the connection between upskilling and their ability to diversify or positively impact funding sources and deliver better services to those in need.

At the same time, NFP leaders also say upskilling programs have super-charged workforce productivity helping them to do more with less in a resource constrained sector.

Furthermore, NFPs are demonstrating strategic intent around outsourcing to alleviate resource constraints and improve efficiency. While 43% of NFP CEOs say outsourcing back-office functions would benefit their organisation, many find it difficult to know where to start, the benefits are often unclear and it can feel at cross purposes with their social impact mission.

The willingness to outsource indicates a strong appetite among leaders to think more broadly about available talent pools in different locations across Australia and abroad. The pandemic has proven that many jobs aren’t dependent upon workers being in a single location. NFP employers make themselves more attractive to potential new hires by being flexible about where and when people work.

However, NFP CEO's views on automation emerged as a surprising feature in this year's survey, not only because they are largely resolute about it not impacting the sector, but also because it sits at odds with the majority of workers’ deep anxiety about automation threatening job security. 

Over half (56%) of NFP CEOs surveyed say automation is not a threat to jobs in the sector. Just 12% think it will put jobs at risk. This contrasts with PwC’s Upskilling Hopes and Fears survey which shows that 59% of Australian adult workers are worried that automation is threatening their job and they need to upskill.

While the opposing views might reflect the different perspectives of employers and employees regarding the impact of automation, it may also suggest that CEOs believe that a lot of activities undertaken by NFPs, such as those done by frontline staff, are not easily automated. 

Given the resource constraints, perceived costs and complexities of automation, and the delivery of frontline services by NFPs, it is hardly surprising that automation has not been embraced early. But NFP leaders need to start looking for a way to invert that paradigm because while automation may impact jobs in the sector differently, it could enable efficiencies. The opportunity to offer employees a richer experience by automating low value tasks e.g. some fundraising activities, volunteer management, marketing campaigns and invoicing and allowing them to concentrate on skilled tasks is something NFP leaders could embrace.

Connected to this is the need to change the conversation around operating costs and the link to improved service delivery. NFPs are under intense pressure to keep administrative costs low even though healthy operating costs allow organisations to execute their mission more effectively. Altering this perception requires a new narrative that links actions to outcomes in a clear and compelling way.

NFPs are progressing to varying degrees in their upskilling journey. However, the number that recognise the link to growth continues to increase. With limited learning and development budgets, this compelling value proposition backs up the need to do more.