How Much Do Nonprofits Pay Their Staff?

How much should you pay your staff?  This is a real world, everyday struggle for nonprofit leaders.  The compensation package includes more than the paycheck.  The intangibles beyond the paycheck set nonprofits apart - a positive workplace environment, work that aligns with ones core values, and opportunity for deep fulfillment through making a difference. 

Yet, the question remains – what amount to pay? 

It all begins with a compensation study.  Identify a compensation study resource that is applicable to your type of work and can be applied to your nonprofit by variables such as size, funding sources, number of employees, or budget. Using this market information, build a pay scale that creates a framework for each “level” in your organization.   

To apply the pay scale you will need to assess all current staff positions- not the person, the position.  Document the results in a job description for every position.  What tasks do they manage? What decision making responsibilities do they have? What level of delivery of the programs and services are they responsible for? Do they have executive leadership functions? Do they carry the primary mission? This documentation will help you assign all roles to their “level” in the pay scale.

Using this process will bring peace and clarity to the compensation process.  It will make pay more equitable across your organization.  It also becomes a proactive solution to a very common expectation GAP between employees and the organization - PAY!  The best effort a nonprofit can make is to ensure that the pay they offer is commensurate to the job the employee is performing.   Partner that with regular appreciation and celebration of the intangible rewards of the work they do – and you have your best chance at retaining satisfied staff. 

Retaining staff has major mission impacts!  I end with a scripture that reminds me of both the employer and the employees role in this. 

Luke 10:7b (EXB)

[For] A worker ·should be given his pay [deserves his wages; is worthy of his hire].

Don’t move from house to house [to avoid the temptation of constantly seeking better accommodations].