Why nonprofits need a pay equity analysis
Recruiting and retaining qualified talent is critical to the success of nonprofit organizations. By ensuring employees are paid equitably and competitively, employers can attract qualified candidates, instill a culture of increased creativity and productivity, and reduce turnover.
First, you must establish what is equitable and competitive compensation. That requires evaluating each position against similar positions in the market. In addition, you should address the impact of the increases in minimum wage in many states and the impact of salary compression, which may have a significant effect on pay equity.
Get the expertise you need
One way to establish equitable and competitive pay practices is to conduct a competitive pay equity analysis. As a best practice, nonprofit organizations should consider working with an independent third party to conduct a competitive pay analysis using both external market comparisons and internal equity considerations. Many organizations also have a requirement, whether from their funding source or within their policies and procedures, to evaluate compensation every one to three years.
In order to make selecting a partner more efficient, Wipfli has developed a sample RFP. Our sample RFP can help you secure a third-party organization to assist you with developing a successful compensation plan and practices for your organization. Feel free to use this competitive pay analysis RFP tool in its current state, or edit it to make it work for your organization.
