Determining Appropriate Compensation
Posted by: Kevin M. Stone in Untagged on
Sep 27, 2008
I am frequently asked how I recommend that a salary amount be determined for a potential candidate a church may be considering for a new position.
Here’s a quick summary:
In determining the amount a potential new staff member should be offered in terms of compensation, there are 3 primary considerations:
1. Market
2. Current Compensation Package
3. Internal Equity
Market
We do an annual market survey looking at “comparison positions” from our staff versus the national market. We use the NACBA (National Association of Church Business Administration). They have an online “salary survey” database that allows you to customize your search very well. Of course there are only a certain number of positions, so you have to pick something that it “close” to the Job Description you’ve created for the position.
Current Compensation Package
If the candidate to whom you are considering making an offer is currently employed, you have to consider where their “total compensation” is at their current place of employment and what it will take to get them. If the person is coming from outside the church, this is often the biggest challenge.
Internal Equity
Obviously, you have to consider how the amount you are going to have to pay this individual will impact other people on your staff. I know that salaries are supposed to be “confidential,” but my experience has been that people talk whether you like it or not. So, you have to be able to “defend” anything you do when it comes to compensation should the need arise. If nothing else, you have to defend it when you are gaining Management Team buy in on your annual salary budget!
Here’s a quick summary:
In determining the amount a potential new staff member should be offered in terms of compensation, there are 3 primary considerations:
1. Market
2. Current Compensation Package
3. Internal Equity
Market
We do an annual market survey looking at “comparison positions” from our staff versus the national market. We use the NACBA (National Association of Church Business Administration). They have an online “salary survey” database that allows you to customize your search very well. Of course there are only a certain number of positions, so you have to pick something that it “close” to the Job Description you’ve created for the position.
Current Compensation Package
If the candidate to whom you are considering making an offer is currently employed, you have to consider where their “total compensation” is at their current place of employment and what it will take to get them. If the person is coming from outside the church, this is often the biggest challenge.
Internal Equity
Obviously, you have to consider how the amount you are going to have to pay this individual will impact other people on your staff. I know that salaries are supposed to be “confidential,” but my experience has been that people talk whether you like it or not. So, you have to be able to “defend” anything you do when it comes to compensation should the need arise. If nothing else, you have to defend it when you are gaining Management Team buy in on your annual salary budget!
