The impact on charity workforce planning following the 2025 budget

The government’s 2025 budget has significant implications for the charity sector, which will undoubtedly impact workforce strategies over the coming months and years. As operating costs continue to rise and resources tighten, organisations are likely to make strategic adjustments in people management, talent retention, and most significantly perhaps, cost control.   As a trusted recruitment partner to many charities and other non-profit organisations, we understand these ongoing challenges and will strive to support our clients in a way that compliments their people strategy over the coming months, whilst taking into consideration the needs of and resources available to that organisation.  

Below I summarise some of the challenges that may lie ahead and considerations when trying to navigate these.

1. Managing staffing costs and retaining talent

With the minimum wage rising and National Insurance contributions up, charities face increases in staffing costs. Many smaller charities or those heavily reliant on lower-paid roles, may feel these pressures even more acutely, especially where funding is already limited.  This could lead to more cautious hiring, re-evaluating staffing structures, and, in some cases, recruitment freezes, all of which was already prevalent during 2024.  In many cases, however, this approach will not be sustainable, the impact is already being felt by existing employees and the services users and beneficiaries. 

Talent retention will be essential, so it will be crucial to undertake benchmarking assessments and to consider non-monetary benefits such as flexible work arrangements and development opportunities to boost morale and maintain engagement with the workforce.  

For salary benchmarking tables and the latest on flexible working, benefits and motivators download our free TPP Salary Rewards and Retention Survey here.

2. Growing volunteer participation and programs

Many charities are likely to focus more on volunteer support and engagement to help maintain service delivery, particularly as paid roles become costlier.  However, developing more effective volunteer management processes and support will be challenging to do.  This is where there may be power in a collective and collaborative approach to building volunteer training and engagement programs across the sector.  

Building a robust volunteer program includes not only recruiting more volunteers but also offering training and support to ensure they are prepared and confident in their roles.  Volunteer profiles are now super varied, with many younger people actively seeking opportunities to support organisations, albeit that they too want to work in a more flexible way than has traditionally been on offer when volunteering.  Volunteer coordinators and support resources will play a critical role in this shift.   

It is also worth noting that Trustee recruitment is a continued challenge for many charities, and a well-structured, highly skilled, engaged and diverse board will also be critical to navigating some of the challenges ahead.   

TPP offers free advertising service for voluntary roles, including Trustee and Chair positions – you can find out more about this free advertising service here.

TPP can also support you with board recruitment, find out more here.

3. Supporting well-being and avoiding burnout

With continued funding challenges and increasing demand for services, staff members face greater workloads, which as demonstrated in our TPP Salary, Rewards and Retention survey, leads to people deciding to leave the sector entirely, a lack of productivity or worse, experiencing burnout. 

Charities must now, more than ever, ensure that their people strategy includes sufficient and high quality employee well-being provisions, including mental health support and workload management. This could involve adding or expanding assistance such as, 

• Employee assistance programmes (EAPs), 
• Prioritising mental health and well-being initiatives, 
• Building a positive, flexible workplace culture. This can be more challenging in hybrid working environments, which many charities have now adopted more permanently. 

Investing in these areas can enhance morale, reduce staff turnover, and build stronger resilience across teams.

You can read more about supporting employee wellbeing in this TPP blog post.

4. Flexible workforce planning and budgeting 

With economic uncertainty affecting public and individual funding, organisations will benefit from continuing to focus on flexible workforce planning and scenario-based budgeting. 

Temporary staffing solutions, project-based/fixed term contract roles, and adaptable team structures could provide the flexibility needed to respond to shifts in funding or service demand. By planning for different scenarios and effective succession planning, charities can maintain essential services and support their workforce while adapting to changing circumstances.   To do this, organisations need fast and efficient access to high quality, reliable and suitably skilled temporary and interim staff, which will require building strong relationships with trusted partners who are able to support the organisation in this way.

Did you know TPP offers permanent, fixed term contract, interim and temporary recruitment solutions – find out more here.

5. Strengthening stakeholder relationships and advocacy

As the budget potentially leaves some service and funding gaps, many charities may need to increase their advocacy efforts with donors, government bodies, and the public. This will mean that roles in communications, stakeholder engagement, and policy advocacy will likely be key to securing support and influencing post-election policy decisions.

Did you know TPP recruits to Leadership & Governance, Education & Training, Finance, IT & Facilities, Fundraising & Development, Human Resources, MarComms & Digital and Office & Specialist Support vacancies across a wide range of non-profit organisations – find out more here

What next?

Charity leaders will no doubt be taking a proactive and flexible approach to implementing strategies that balance cost control with talent attraction and retention, developing or acquiring much needed future-ready skills and optimal service delivery.  

With dedication and hard work from their excellent HR and talent acquisition teams, this will all be possible and we look forward to supporting the sector in any way that we can, to ensure charities can navigate this challenging budgetary landscape by aligning their workforce strategies with both financial realities and organisational goals.

For more insights, market knowledge or recruitment support tailored to the charity sector, visit TPP Recruitment