The shifting dynamics of the workplace
The need for upskilling
New research from the World Economic Forum reveals that by 2030, over 20% of jobs worldwide are expected to have evolved significantly due to labour-market disruptions. These changes – driven by the rapid rise of frontier technologies, the green transition, shifting demographics and geo-economic fragmentation – could create 170 million new jobs. But they could also displace 92 million others, according to the World Economic Forum’s Future of Jobs Report 2025.
Technology is constantly, and quickly, evolving. It is important that the voluntary sector is able to stay abreast of these advances where it can. But with the strained economic backdrop, and a reduced ability to plan long-term because of a constant state of crisis, charities are struggling to keep up.
As Taran Uppal, analyst at Pro Bono Economics, says:
The social sector is hurtling towards a serious skills shortage. Recruitment in the social sector is becoming increasingly difficult: vacancies are on the rise, more of those vacancies are long-term, and the sector is finding it harder to recruit the right skills. The sector has also been cutting back on training, with spending falling by 25% per employee since 2011. This means recruitment challenges are being compounded by training cutbacks, at a time where investment in skills is most needed.
While all charities are grappling to understand how to maximise the opportunities created by AI, whether that’s through automation of processes, generative content creation, understanding trends in giving, or how to use AI to improve service delivery, not all are actively using it yet. This risks opening up a digital divide which will be hard to close unless boards act quickly, particularly if charities that hold more resources than others are able to seize opportunities more quickly.
In 2024, Zoe Amar Digital’s Charity Digital Skills Report found that while 61% of charities are currently using AI in their day-to-day work or operations, only half have a strategy for digital in place.
Charities will need to work out how to use AI to best support what they do, while also using it safely and securely, and in line with regulations such as GDPR. AI and automation can support the drive for efficiency, for example in admin tasks and previously paper-based processes, which frees up staff to focus on areas that technology can’t.
Boards and executive teams not only need to consider employee training and development to meet the fast pace of change within the sector, but also the need to demonstrate skills themselves. Zoe Amar Digital’s report reveals that 62% of charities say their trustees’ digital skills are low or could improve.
Volunteers and trustees in shorter supply
Many charities rely on the goodwill of people to donate their time, skills and experience. From helping deliver services on the frontline, to those lending their skills and experience in trustee roles, charities rely on the generosity of those who care about the issues and communities their organisation supports. But formal volunteering is in decline.
Figures from the Community Life Survey show that formal volunteering in England in the last decade fell to its lowest level since data collection began. In 2013/14, 27% of adults had taken part in formal volunteering at least once a month in the last year. By 2023/2024, that figure had dropped to 16%.
There are a number of reasons for this, including paid work, study or caregiver commitments.
Trustees are a particular recruitment challenge for all charities and they need to have the right skills, whether that's how to use AI in marketing or communications governance, for a charity to achieve success. NCVO’s trustee recruitment and retention report in autumn 2024, revealed that 79% of charities find it difficult to fill board vacancies, often with delays of over six months.
Organisations need to create inclusive opportunities that attract a diverse range of volunteers and trustees, and use digital technology to support this. There also needs to be paid time off work for volunteering, which has proven benefits for the economy as employees who volunteer are more productive in their workplace.
In the year ahead, volunteering in your community, or for causes close to your heart, will be more vital than ever as the charity and voluntary sector works to overcome some of the toughest challenges facing our society. But charities are struggling to recruit and retain volunteers. It’s important that boards and charities look at their volunteering strategies to avoid potential risks to service delivery.
Leadership is changing
Being a leader has never been more challenging. New research shows that 85% of small charity leaders feel their role has negatively impacted their mental health with 20% describing it as ‘severe’. Collaboration and communication between leaders, creating networks and spaces to share and be open, is important to help overcome some of these issues.
But leaders are also under pressure to consider the mental health of their employees too. A recent survey by Acas has shown that nine in 10 employees think it is important for leaders to prioritise staff mental health at work.
As a result, leadership continues to evolve. Leaders increasingly need to show compassion, while also being brave, agile, and creative in the way they run their organisations. NCVO’s new leadership course (‘Leading on purpose: equipping charity leaders to drive lasting change’) is a practical four-month programme for emerging charity leaders, which aims to support them to develop the knowledge, mindset, and connections they need to create impactful, resilient, and effective organisations. It also helps them to think about protecting their wellbeing, and how to avoid burnout.
Evolving workspaces
Since the pandemic, more and more of us are working remotely, flexibly or in a hybrid model. As a result, charities are increasingly reassessing their office space needs in response – especially given the pressures on charity finances.
Charities are typically reducing their office footprints by 30 to 50%, and are working out strategies for how their workforce can connect and collaborate in both real-time and virtually.
Recognising the need for flexibility in working, NCVO offers tenanted spaces and one-off meeting room hire in our Society Building in London’s King’s Cross. It’s the chance to connect with other charities, and we also put the money you spend back into supporting the charity sector.
Repurposing office space for tenant use or meeting room hire is a model other charities could adopt to unlock the potential for generating extra income. But it needs careful consideration and presents different risks and insurance needs that need to be worked through.