When a board finds a specific process to become sticky, time-consuming, or controversial, it may perhaps opt to delegate the matter to a committee. Compensation committees are a situation in point. Frequently boards attempt to place board members on the compensation committees that have some kind of related expertise in evaluating capabilities sets and setting compensation. Once they establish compensation committees, lots of nonprofits assign the following duties to it:
- Researching proper initial salaries for new positions: These determinations may perhaps be depending on market place surveys and on evaluation on the nonprofit organization’s recruiting desires.
- Evaluating the efficiency of senior management and staff: This can be an ancillary duty to setting compensation. The committee’s function may perhaps be basically to compile efficiency evaluation information from other board members and staff, then hyperlink it to a compensation recommendation in some meaningful way.
- Recommending salary levels and adjustments, ordinarily on an annual basis: Suggestions should really include things like the investigation and evaluation that the committee made use of in producing its selection, which include salary surveys and tips from trained consultants with backgrounds in personnel and human resources management. These people today are in some cases referred to as compensation consultants.
