Money or the Mission? Comparing drivers of employee engagement in commercial and not-for-profit organisations

It is generally held that the Not-for-Profit sector is a unique HR environment where limited reward opportunities mean organisations have to seek alternative ways to motivate staff. To test this, climate surveys were completed by 1159 employees in 53 NFP and 53 for-profit organisations. Most HR and management practices were rated very similarly across the sectors. However, compared to commercial organisations, employees in NFP organisations reported greater levels of safety compliance and were less results-focussed. Slightly higher levels of engagement in NFPs were attributable to age differences. While rewards were less important in NFPs, Mission and Values were important for engaging employees in both sectors. Purpose, Participation and Progress were the key work systems driving Passion in both sectors.