Compensation could be a politically charged situation for nonprofits. On one particular hand, most organizations ought to spend enough salaries to attract competent and qualified many people. Alternatively, yet, there’s continually a sentiment that just about every dollar spent on executive salaries is known as a dollar that is subtracted from intended nonprofit system beneficiaries. Fortunately, compensation committees may help bridge the gap.
The function of a compensation committee commonly contains the following duties:
- Researching what equivalent organizations spend: This investigation contains identifying equivalent organizations and positions involving equivalent ability sets.
- Documenting how the committee tends to make compensation choices: This documentation is very important considering that if salaries are questioned, the committee requires to become capable of clarify how it decided on the salary it ultimately awarded.
- Awarding raises: Commonly compensation committees are charged with evaluating staff, documenting the outcomes of efficiency evaluations, and deciding the amount of raises and bonuses to award.
