Is the cost of living a crisis for professional bodies?

“Cost” has and will always be a factor in an individual’s decision making, and for professional bodies and membership organisations it still remains a key reason for member resignations. With the most recent cost of living crisis, questions around subscription fees and the affordability of services have become even more prevalent.

In our experience, the underlying rationale behind a member’s concerns with cost were often about value for money, benefit take up and overall use of the membership. Arguably, these issues were influenceable with improved engagement, support and benefit awareness. Although this feedback is still very common, conversations about the cost of membership are now genuinely about “the cost” and whether it is affordable.

Some of the factors influencing the comments are whether membership is essential/a requirement for their career and if their employer contributes to the subscription fees. In addition, members in certain sectors often belong to multiple organisations (medical professions for example), creating another question; “which is my “first home” for membership and which is non-essential?” Ultimately, living costs will always take priority, and if membership is not a requirement for their employment, it can be viewed as a luxury members can’t afford at this time.

However, we have seen organisations adapting to the cost challenge by offering reduced rates to those on lower incomes, payment freezes for those on career breaks and parental leave, the ability to pay Direct Debits by instalments and, in some cases, financial support through their benevolent fund. In addition, many have increased their free online CPD events, webinars and online resources.

We have also received feedback to suggest that many ex-members would rejoin their respective bodies when returning to work or when their finances would allow, and conversations with those who have now rejoined have revealed that in some instances it is not the amount to be paid but when it is due.

For the majority of professional bodies their peak renewal period is January, whether an anniversary or rolling monthly renewal. This is a financially difficult month for most individuals, and many become habitual “late payers” choosing to pay their fees at a later, more affordable, time. It is a known challenge for many organisations and an area where the ability to spread the cost of subscription fees can assist.

But is cost the top reason for resignations?

In our experience the answer is No. For most of the renewal intervention and lapsed member campaigns we have conducted, “Career Change” coupled with “Retirement” remains the key cause. In recent times, the cost of living has had more baring on career movement and salary expectations, but the overall feedback has remained a constant. Unlike value and benefit take up, this is something professional bodies cannot influence, arguably other than through continued advocacy and campaigning for the profession. In many cases this may also relate to public and industry awareness of the organisation or the profession itself.

“Retirement” has and will always be high on the resignations list, but it is likely to gain momentum over the coming years as more of the core long-serving members reach their retirement age. Although most membership bodies offer a retired grade with reduced fees, it is inevitable that many will leave when they are no longer active in the field and is something for organisations to be thinking about now.

Nevertheless, the cost of membership is clearly a major factor in the decision on whether to join an organisation and renew each year. It is a factor that is even more apparent now with the cost of living, but it is not the only factor. There are some aspects that can potentially be influenced while there are others that cannot, and it is about the organisations ability to adapt to the challenges and support its members and prospective members through these periods of change or uncertainty.

The key discussions to be had on cost are around the affordability of services and the ease of making payment; can we accommodate multiple payment options, can we spread out the cost, and is our renewal period appropriate and suitable for both us and our members?