Salary Expectations in 2026: Are Scottish Charities Falling Behind?
4 March 2026 / Ryan Keirnan
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Salary Expectations in 2026: Are Scottish Charities Falling Behind?
Across Scotland’s third sector, one topic keeps surfacing in boardrooms and leadership conversations — salary. Not in an abstract way. Not as a philosophical debate. But as a very real, practical tension: Can we still attract the talent we need at the salaries we’re offering?
As specialist recruiters working exclusively in Scotland’s third sector since 2007, we are seeing clear shifts in candidate expectations, particularly at senior and specialist levels. The question is no longer whether salary matters. The simple answer is it does. The question is whether organisations are adapting quickly enough.
The Market Has Moved — Quietly but Significantly
Over the past three years, several structural shifts have reshaped the recruitment landscape:
• Inflationary pressure and cost of living increases
• Public sectors pay adjustments
• Greater salary transparency
• Hybrid working normalisation
• Increased cross-sector mobility
Senior candidates are no longer comparing roles solely within the third sector. They are benchmarking against public bodies, housing associations, social enterprises, and in some cases private sector opportunities offering significantly higher packages. We are increasingly hearing: “I love the mission — but I can’t justify the pay drop.” That’s not a lack of commitment. It’s reality.
The Risk of Standing Still
Many charities are understandably cautious. Funding pressures are real. Grant income is uncertain. Reserves must be protected. However, what we are beginning to observe is a widening gap between the level of experience organisations expect and the salary they are prepared to offer. When expectations remain high but remuneration does not reflect market movement, three things tend to happen:
1. Shortlists shrink
2. Search timelines extend
3. Compromises are made
Sometimes those compromises are manageable. Sometimes they are costly. A misaligned appointment at senior level can impact strategy, culture, fundraising performance and team stability. The financial saving on salary can quickly be outweighed by the operational cost of underperformance or turnover.
Competing Beyond Salary
The third sector cannot and should not try to compete purely on pay. But it must compete intelligently. Where we see organisations succeeding, they are clear on their full value proposition:
• Flexible and genuinely autonomous roles
• Strong governance and supportive boards
• Clarity of strategy
• Visible impact
• Professional development opportunities
• Transparent leadership culture
High-calibre candidates are not solely motivated by salary. But they are motivated by fairness, transparency and respect for their level of responsibility. Increasingly, candidates are asking:
• Is the salary benchmarked?
• Has this been reviewed recently?
• Is there progression built in?
• Does the board understand market rates?
These are sophisticated questions and boards must be ready to answer them.
When Paying More Is the Strategic Decision
There are moments when increasing salary is not a cost — it is a strategic investment. This is particularly true when:
• The role is pivotal to income generation
• The organisation is entering a period of change
• Governance stability needs strengthening
• Services are expanding
• Reputational recovery is required
We have worked with several Scottish charities who initially hesitated on salary, adjusted their approach, and ultimately secured transformational leaders who delivered measurable growth. The key is alignment between ambition and resource. If the strategic expectation is growth, modernisation or cultural reset — the salary must reflect the capability required to deliver it.
The “Passion Discount” Is Eroding
Historically, the third sector relied — sometimes unintentionally — on what could be described as a “passion discount”. The assumption that commitment to cause would offset lower pay. That dynamic is shifting. Today’s senior leaders are highly skilled professionals. Many have mortgages, families, and competing opportunities. Passion remains essential but it is no longer a substitute for competitive reward. The organisations that recognise this are navigating recruitment with far greater confidence.
What Boards Should Be Asking Themselves
Rather than asking, “Can we afford to increase the salary?”
the more strategic question might be “Can we afford not to?”.
Boards should be considering questions like:
• When was this role last benchmarked?
• Has the scope increased without pay review?
• Are we clear on the risk of an underpowered appointment?
• What message does our salary signal to the market?
Sometimes the issue isn’t even the base salary, it’s the lack of clarity, flexibility or progression. Small structural adjustments can make a significant difference to candidates and employees.
A Realistic Outlook for 2026
We do not foresee dramatic, sector-wide salary inflation. But we do anticipate continued pressure at:
• Senior leadership level
• Specialist fundraising roles
• Finance and governance positions
• Volunteer and operations leadership posts
Organisations that are proactive, transparent and market-aware will continue to attract strong candidates. Those that rely solely on mission appeal may find recruitment increasingly challenging. At BTA, we believe salary conversations should be honest, data-informed and strategic — not reactive.
If your organisation is planning senior recruitment this year and would value a confidential discussion about market positioning, we would be pleased to share insight from across the sector.
The right appointment is always more valuable than the cheapest one.
