Background
Each day, the community sector workforce is there when Queenslanders are in need. We provide services to people experiencing homelessness, domestic violence, and mental health issues. We support children, families, people with disability and older people. We provide connection and community, and work to alleviate poverty, disadvantage and inequality for the benefit of all Queenslanders.
By industry, health care and social assistance was the largest employer group in Queensland in 2024. The community sector is made up of 185,514 dedicated staff working across 7,225 charities and supported by 398,293 volunteers. This workforce plays a crucial role in improving outcomes for Queenslanders and contributes significantly to the economic and social wellbeing of the wider community.
Due to the cost-of-living and housing crisis, recent years have seen hardship touch the lives of far more Queenslanders. Across Queensland, community sector workers are continuing to report an increase in the number of people seeking support. They are also reporting a shift in the demographics of those in need, with many people with stable incomes seeking support from services for the first time.
However, while many Queenslanders are struggling with the cost of living, the Queensland economy has been touted as the strongest in the nation. In the 2024-25 Queensland Budget, the Queensland Government made substantial commitments on cost-of-living measures. This includes significant energy bill relief, cheaper public transport, assistance to pay for sporting activities for children and discounts on government fees and charges.
Recognising the critical role of the community service sector, the 2024-25 Queensland Budget also highlighted a range of initiatives that will support some services to respond to the increasing demand on the sector. This included additional funding to emergency food relief services, as well as services delivering programs such as: disability advocacy, community legal centres, gambling help services, refugee support services and the Queensland Financial Resilience Program.
While services continue to experience ongoing increases in demand, they are also managing increasing costs to deliver services. For 2024-25, the community sector secured a modest increase in the indexation of their funding. This was initially announced as 3.75 per cent (as per the 2023-24 budget update), although it was increased to 3.94 per cent in recognition of higher than predicted inflation.
This report outlines the primary issues and challenges identified by the sector that are impacting on efficient and effective service delivery. QCOSS will continue to seek change that will respond to these challenges with the aim of strengthening the sustainability of the sector.
Despite the challenges the sector is experiencing, it also remains strong and committed to achieving significant outcomes for Queensland communities. All across Queensland, community organisations are working together to identify opportunities to improve co-ordination and collaboration of services, and highlighting the importance of community led place-based initiatives that meet the needs of their local communities.
Methodology
Qualitative and quantitative data for this report was obtained from a series of engagements that QCOSS led with the community sector in 2024. This included:
- QCOSS Town Halls were held across Queensland in 11 locations from Cairns to Brisbane, with 262 community sector representatives participating, mainly from regional areas. Discussions, facilitated by QCOSS staff, focused on characteristics of high-performing organisations and issues affecting service users, frontline workers, and community organisations, with responses collected and analysed.
- The 2024 QCOSS Community Sector Survey had a significantly higher response rate than in previous years, with 1,307 community sector employees participating. Respondents included a diverse range of roles, from CEOs to frontline workers, and represented organisations providing services for children and young people, housing and homelessness, and ageing, disability, and carers.
Of the Queensland respondents, a higher proportion worked in regional areas (47 per cent), while 27 per cent worked in capital cities, 6 per cent worked in a remote area, and 18 per cent indicated they worked across all areas of Queensland. A total of 8 per cent of respondents worked in an Aboriginal community-controlled organisation.
Increasing service demand
A common theme raised by QCOSS Town Hall participants, as well as survey respondents, was the significant unmet demand for community services in Queensland. Among survey respondents, only 7 per cent reported that their service was always able to meet demand, while 39 per cent reported usually being able to meet demand.
More than half of respondents (54 per cent) felt their service could never, rarely or only sometimes meet demand.
Which statement reflects the ability of your service to meet demand, so far in 2024?
“We decline approximately 5-10 referrals a week, every week for the last 12 months.”
“My organisation has been struggling to meet needs as most programs are full and their wait lists are full as well. People have to wait 3 or more months to access services.”
"Clientele has changed. Seeing more people in hardship where both couples are working due to high interest rates, increase in cost of living. Not just people on low income.”
Which of these has occurred in your main service or program during 2023-24?
These indicators highlight a service system under significant stress. In response, survey respondents highlighted various actions their organisation were implementing in response to the rapidly increasing demand. This included making non-frontline positions redundant to increase frontline capacity, or reducing the time spent with service users by providing more brief interventions and less intensive supports.
Further to this, several respondents reported trying to recruit more volunteers to respond to demand, while others were required to close programs for days at a time due to not having enough staff to meet demand.
Increasing complexity of service user presentations
QCOSS Town Hall participants consistently reported an increasing level of complexity in the range of issues their service users are seeking support with. Complexity is used to describe presentations where people have multiple issues co-occurring. This complexity of service user presentations is having a direct impact on organisations’ ability to meet demand. This is because service users are needing to stay in programs for longer, which increases wait times.
An overwhelming number of survey respondents reported an increase in the complexity of need among service users (84 per cent), as well as levels of poverty and disadvantage among service users (83 per cent). Several survey respondents also reported that because so many service users are presenting to their service with complex needs, they do not have the funding or capacity to assist everyone. Organisations are therefore needing to triage service users so that those with the highest level of risk and complexity are prioritised.
“The needs of families have changed drastically since COVID. While historical trends may have indicated an increased need, COVID has increased the complexity of needs.”
The QCOSS community sector survey asked respondents about the main issues affecting the people or communities their organisation supports. Cost of living pressures were the most significant issue impacting service users, with 91 per cent of respondents indicating this was the main presenting issue.
Findings about cost-of-living pressures were consistent with those outlined in the QCOSS 2023 Living Affordability in Queensland report, which found that the impact of cost-of-living pressures on households is high stress and low financial wellbeing resulting in poor mental health outcomes. Among the modelled households, only one was able to meet basic living costs while the others were in debt or failing to make ends meet.
Secondly, 84 per cent of survey respondents reported service users were impacted by housing affordability and homelessness. This is supported by independent analysis of the Queensland housing system, which found that Queensland’s housing crisis continues to be unprecedented and has not abated in the past 12 months.
Further to this, demand for homelessness services in Queensland has grown by 34 per cent in five years (compared with 9 per cent nationally), and Queenslanders seeking specialist homelessness services was well above anywhere else seen in Australia.
“Cost of living increases are affecting everyone in the community. More people are presenting with rent arrears as they are choosing to eat over paying rent. Even our staff are struggling with cost of living increase as wages in the community sector are very low.”
“Many more enquiries are due to people being homeless/risk of homelessness and unable to meet the cost of living. As safe housing is such a fundamental need, we are working a lot in this space even though we aren't specifically a homelessness organisation. It has meant that people with other issues… aren't being accepted as often, as we work with those who are most vulnerable and at risk. We have to triage this way due to our limited capacity.”
“Pressures are increasing and multifaceted which have resulted in more mental health issues, homelessness, and strain on relationships.”
Difficulty recruiting and retaining staff
In 2024, the sector continued to face significant workforce challenges with 63 per cent of survey respondents indicating it has become more difficult to attract and retain staff. As well as this:
- 41 per cent agreed that staff turnover is high in their organisation
- 61 per cent agreed that there is significant burnout experienced by our workforce.
These workforce challenges exacerbate the stress that existing workers are under, with over half of the survey respondents (57 per cent) stating that they strongly agreed or agreed that they felt under pressure due to understaffing.
When asked where they plan to be working 12 months from now, 11 per cent of respondents reported that they either don’t plan to be working in the community sector or are planning to leave the workforce or retire.
The community services sector is an ageing workforce, with 34 per cent of survey respondents identifying as being between the ages of 55 to 65 plus. It is important to consider that this will result in more people leaving the community sector workforce and continue to place pressure on our already inadequately resourced workforce.
“Lack of affordable housing is the main pressure, felt by clients as well as staff. It also prevents us from expanding our recruitment strategy beyond our local area - it is now the case that we ask in interviews if people have somewhere to reside in our area before we can employ them.”
Systemic workforce planning is required to address the challenges individual organisations are facing. A strategy could include actions for capturing unskilled, early career and recent graduate workers, providing meaningful employment opportunities, and ensuring they have the support they need.
This support is particularly important in the first five years of their work in the sector, so they can develop the skills and behaviours they need to work effectively with service users and in community organisations and to work within a values-based and human rights respecting industry.
Low wages
Remuneration was a significant reason for workers leaving the social service sector workforce.
The community services sector is a highly feminised workforce, with approximately 81 per cent of workers employed in the ‘social assistance services’ workforce in Queensland identifying as female. Significant gender gaps still persist for women with respect to labour force participation and wages. Women are more likely to be employed in part-time and insecure work compared to men and perform the bulk of unpaid care work.
Respondents also highlighted that there are inequitable pay arrangements between roles in government, private and non-government organisations. Organisations feel that they cannot compete with the incentives, remuneration and superannuation that the private and government sector offer.
“Limited wage rises to meet increases in economic climate means that staff are struggling financially and so look for other work opportunities where they can get a higher wage.”
Increasing service delivery costs
Increasing costs was a common theme raised by QCOSS Town Hall participants, as well as survey respondents. An overwhelming number of respondents indicated that their organisation is struggling to meet the increasing costs involved in delivering services. Some organisations reported trying to diversify their funding streams by applying for additional grants and exploring philanthropic funding and donations.
When asked about the adequacy of funding that their organisation receives from government, only 9 per cent of respondents believed government funding covered the full costs of service delivery, and just 8 per cent felt it meets community demand. Additionally, only 11 per cent think the funding allows their organisation to reliably plan for the future.
Are these costs not funded, under-funded or adequately funded?
Several respondents highlighted that funding arrangements should adequately resource administrative and back-of-house positions, such as Information and Communications Technology (ICT), finance, human resources, policy and compliance and other positions that are essential to effectively running an organisation.
Some organisations highlighted that an increase in funding, longer-term contracts, as well as the ability to use funds flexibly has had a significantly positive impact on their financial position.
Appropriate indexation is a key component of a sustainable community service sector. This is because poor indexation leads to a reduction in sustainability, increased risk to service users and government, and a reduction in service quantity. When asked whether overall indexation is adequate, 50 per cent of CEO respondents to the QCOSS community sector survey disagreed with this statement. Many also highlighted concern that indexation is not in line with rising costs, while several also reported that they would like to see better communication regarding indexation.
Poor procurement practices
Survey respondents and QCOSS Town Hall participants consistently highlighted that procurement processes are negatively impacting the financial sustainability of their organisation and the outcomes their organisation is seeking to achieve. Survey respondents identified that the length of service agreements is inadequate and that short-term funding is a barrier to improving community outcomes.
Short-term funding prevents organisations from being able to implement longer-term plans that respond to the root cause of an issue, and they also impact on the community sector’s ability to maintain a stable workforce.
Contract renewal left to the last minute, gaps in funding, or funding that is not safely wound down leads to serious consequences for organisations, workers and service users.
“Additional funding announcements for housing and homelessness service providers but only offering short term contracts - in some cases only 6 months. Factoring in recruitment time, employee contracts can be as short as 3 months.”
Strong organisational responses to workplace stress
Survey respondents generally reported feeling safe at work, and that their organisation has good systems in place to prevent harm to clients or community members (79 per cent), and to workers (74 per cent). However, several responses indicated that while there are processes in place to ensure protection of physical safety, workers are at risk of vicarious trauma and burnout.
In the current environment of increasing demand, workers are being exposed to a greater number of highly complex client situations, and many workers are working significant overtime to meet demand. This has a flow on effect and impacts staff retention.
When asked whether they feel emotionally drained from their work, 61 per cent of respondents either strongly agreed or agreed with this statement.
An overwhelming number of responses indicated that more focus on wellbeing and psychosocial health is needed, with financial allowances and opportunities to support this.
It is important to note that there is now a code of practice on managing the risk of psychosocial hazards at work, under the Work Health and Safety Act 2011 (WHS Act). All organisations covered by the WHS Act must manage risks to both physical and psychological health of workers, volunteers, and service users, so far as is reasonably practicable.
“Our organisation cannot afford EAP [Employee Assistance Program] due to excessive costs to small organisations who cannot carry the cost.”
Career progression and professional development
Providing clear career pathways and opportunities for progression can help organisations retain skilled workers.
Community sector survey respondents were asked whether they have good prospects for career advancement. Of the total respondents, 35 per cent agreed or strongly agreed with this statement, 36 per cent indicated they were neutral or not sure, and 29 per cent disagreed or strongly disagreed that they had good prospects for career advancement
Career progression was identified as one of the main reasons (49 per cent) for workers leaving the community services sector.
A number of survey respondents indicated that their organisation did not provide opportunities for career growth or progression, which contributed to their reason for planning to leave their role.
Professional development also aligns with perceived opportunity for staff to progress in their career, and is important to maintaining a committed and skilled workforce. Professional development was not always available due to demands on staff time, and funding pressures.
“[There needs to be] recognition [by] funding bodies of the need for increased funding overall for training and professional development, which in our case comes out of the management fees.”
Currently, many frontline staff who move into supervisory roles receive very little to no training or mentoring. Building leadership capability in organisations enables psychosocial wellbeing, adequate supervision of staff, the tailoring of career progression and succession planning, as well as the contextualisation of professional development.
Conclusion
In 2023-24, the community services sector faced increased levels of service demand, amidst a housing and cost-of-living crisis. The complexity of service user presentations and the challenges recruiting and retaining employees and volunteers strained the capacity of community service organisations across Queensland to meet demand.
A significant number of organisations reported finding it difficult to cover increasing operating and service delivery costs. Sector workers raised concerns about weak remuneration and insecure short-term contracts as significant factors impacting on recruitment and retention. Poor procurement processes, such as contract renewals being severely delayed, also had a negative impact on the workforce. Sector workers consistently identified that opportunities for career progression would support more workers to stay in the sector, and that further access to professional development would support staff to feel more prepared to deal with the multifaceted demands of practicing in the community sector.
Despite immense challenges, there is still cause for optimism. After the QCOSS community sector survey closed, the Queensland Government announced the implementation of a range of procurement principles for social services as part of the 2024 Queensland Budget. QCOSS and our members have advocated consistently for the adoption of these procurement principles.
The procurement principles for social services will support longer-term contracts with default five-year terms. With longer-term contracts, organisations will be better equipped to stabilise their workforces, implement longer-term plans and achieve better outcomes. Longer-term contracts (and more advanced contract renewals) will also have a positive impact on regional and remote service providers, as it will improve employment stability. The conditions also stipulate that, where contractual requirements are being met, six months’ notice (in writing) will be provided before agreements cease, are not renewed or are substantially reduced.
Under the new conditions, permanent employment for workers will be prioritised, with sufficient funding and contractual flexibility to ensure workers are paid entitlements (including redundancies). QCOSS welcomes the Queensland Government’s commitment to immediate implementation of the procurement principles for social services, as it will support the delivery of more efficient and effective services that will improve the quality of life for Queenslanders experiencing disadvantage.
In 2024-25, QCOSS will seek to leverage the insights from this report to identify issues that require a strategic response. We will continue to shine a light on emerging issues, trends and ideas, and use key points of feedback to inform and develop programs to support Queensland’s growing, impactful and resilient community sector.