As not for profit organisations wind down for the end of 2025, it presents a valuable opportunity to pause and reflect on what the data tells us about employee experience across the sector.
Drawing on benchmark data from 2024 and 2025, this review highlights how employees across Australian NFP organisations are experiencing their work, leadership and wellbeing. The results show meaningful progress in several key areas, alongside persistent challenges that continue to shape workforce sustainability in a sector defined by purpose, limited funding and increasing demand.
Engagement and Belonging strengthened in 2025
Employee engagement across the NFP sector continued to improve in 2025. Data from more than 50,000 employees shows engagement increased from 81 percent in 2024 to 84 percent in 2025. This reflects a growing sense of emotional commitment, motivation and connection to work, which remains one of the strongest strengths of the sector.
When compared to broader benchmarks, this result remains particularly encouraging. Corporate sector engagement sits closer to the mid seventies, positioning NFP organisations well above average despite ongoing financial and operational pressures.
Belonging and inclusion also showed noticeable improvement. Inclusion scores rose by approximately seven percentage points, with more employees agreeing that they feel valued and part of a cohesive team. This improvement reflects deliberate efforts by many organisations to build inclusive cultures and strengthen internal connection following years of disruption.
That said, inclusion scores across the sector remain slightly below broader industry benchmarks, indicating there is still work to do to ensure all employees experience genuine inclusion regardless of role, background or identity.
Leadership confidence continued to lift
Perceptions of leadership improved modestly in 2025. Employees reported increased confidence in leadership direction, communication and alignment with organisational values. While these improvements are encouraging, leadership scores remain lower than several operational measures, reinforcing the importance of continued focus on leadership capability, transparency and recognition.
In the NFP sector in particular, leadership experience plays a critical role in shaping engagement and retention. Small improvements year on year suggest progress, but also highlight that leadership remains a key lever for future gains.
Wellbeing showed meaningful improvement
Employee wellbeing recorded one of the strongest improvements in 2025, rising from 73 percent to 77 percent favourable. This reflects growing organisational attention to workload, flexibility and mental health support following sustained pressure across recent years.
Employees reported feeling more supported, more comfortable discussing wellbeing, and better able to manage competing demands. While burnout has not disappeared, the data suggests many organisations took active steps to respond to fatigue and stress, with positive results.
Operational experience improved across most areas
Every major employee experience category improved or held steady in 2025. Scores related to sense of purpose, collaboration, communication and management support all rose, in some cases significantly.
Management support in particular showed a strong recovery after being a clear pressure point in 2024. Improved communication, clearer expectations and more responsive leadership at the team level contributed to stronger day to day experiences for many employees.
These gains highlight the impact of listening to feedback and taking visible action.
Remuneration and growth remain unresolved challenges
Despite overall progress, remuneration and benefits remain the most significant challenge for the sector. While satisfaction improved slightly in 2025, a large proportion of employees still do not feel fairly compensated.
Cost of living pressures have amplified long standing pay constraints in the sector, making remuneration a persistent risk to retention. Growth and development also remained flat, with employees signalling limited access to learning, progression and long term career pathways.
These two areas represent the most significant threats to workforce sustainability moving forward.
External pressures shaped the 2025 experience
Broader economic and social conditions had a clear influence on employee experience in 2025. Cost of living pressures continued to affect financial wellbeing, while burnout remained a reality for many employees working in emotionally demanding environments.
At the same time, increased awareness of wellbeing, greater flexibility for some roles, and renewed connection to purpose helped offset some of these pressures. Employee experience outcomes in 2025 did not occur in isolation, but reflected how organisations responded to the wider environment their people were navigating.
Key reflections from 2025
The 2025 data reinforces several important truths for the NFP sector. Purpose remains a powerful driver of engagement. Listening and responding to feedback delivers measurable improvement. Wellbeing and engagement are deeply connected. And unresolved issues such as pay and development continue to undermine otherwise positive experiences.
The progress made in 2025 is meaningful, but fragile. Without sustained attention, these gains risk stalling or reversing.
Want to see how your organisation stacks up against NFP sector benchmarks or other industries?
Speak with our Employee Experience team to gain deeper insight.
