DESIGNING A NOT-FOR-PROFIT COMPENSATION SYSTEM

"JoAnn Senger has gone out of the box to address fundamental compensation issues too-often ignored in the public and not-for-profit sectors. She peels away the 'second-class citizen' label and provides effective compensation structures that reward top performers."
--Jonathan Fraser Light Senior Partner, Nordman, Cormany, Hair & Compton

A step-by-step plan to design and manage a compensation system for not-for-profit organizations

Written by recognized not-for-profit human resource specialist JoAnn Senger, Designing a Not-For-Profit Compensation System provides a step-by-step method to help human resource professionals design and manage a successful compensation system for any public or not-for-profit organization.

When it comes to compensation systems, the not-for-profit sector is rife with complexities, including legislative approval requirements and the board of directors' direct involvement in compensation matters. Addressing these and other unique obstacles, Designing a Not-For-Profit Compensation System:
* Defines various types of not-for-profit and public organizations
* Identifies current types of compensation structures
* Identifies organizational characteristics influencing the usefulness of each structure, including the organization's budgeting and accounting processes and timetables
* Covers maintenance for all compensation structures and the interaction among organizational units
* Details the usefulness of each compensation structure, including midpoint calculations, rate adjustments, variable pay, and market surveys

JOANN SENGER is founder and President of Senger Services, a consulting firm offering such services as counseling, recruitment, policy development, compensation studies, workflow and staffing analysis, training, and targeted interviewing to a large variety of not-for-profit organizations. Clients have included: Ventura County; U.S. Navy through VRMack Management Consultants; Screen Actors Guild; Investigations Etc.; California Institute of Integral Studies; California Institute of Podiatry; Institute of Transpersonal Psychology; the Fielding Institute; and the Western Association of Schools and Colleges (WASC). Senger currently teaches economics for the University of Phoenix; information and cost analysis in HR management for the University of California, Santa Barbara extension program; and preparation classes for the SPHR/PHR certification examinations for California State University at Northridge and Professionals in Human Resource Association (PIHRA). She has also taught benefits and compensation for the California Lutheran University extension program.

Preface.
Introduction.
Definitions.
Chapter 1: Organization—Who Are We?
Type of Organization.
Operational Focus.
Mission Statement.
Number of Years in Existence.
Geographical Presence.
Description of Operations.
Spreadsheet 1: The Organization.
Chapter 2: Governance—Who’s in Charge?
Governing Board.
Number of Members.
Board Member Finances.
Elected/Appointed Officials.
Board Member Titles.
Ex Officio Board Members.
Terms of Service.
Quorum for Decisions.
Number of Meetings per Year.
Role of the Governing Body.
Spreadsheet 2: Governance.
Chapter 3: Revenue—Where Do We Get Our Money?
Fund Sources.
Annual Budget Cycle.
Formal Budget Request Process.
Required Reporting.
Fund Accounting.
Fundraising.
Donors.
Government Support.
Budget Based on Revenue Predictions.
Voter Influence.
Spreadsheet 3: Revenue.
Chapter 4: Workforce—Who Are These People?
Employee Group.
Male/Female.
Full-Time, Part-Time, and Variable-Time Appointments.
Appointment Terms.
Unionized.
Average Years of Service.
Average Age.
Average Salary.
Spreadsheet 4: The Workforce.
Chapter 5: Current Compensation—How Are We Paying Them Now?
Human Resources Information Systems Infrastructure.
Employee Groups.
Number.
Unionized.
Average Years in Job.
Pay Structure.
Job Descriptions.
Salaries Public.
Performance Management.
Salary Increase Date.
Compensation Authority.
Spreadsheet 5: Current Compensation.
Chapter 6: Exempt Workforce—Your Colleagues and Your Boss.
Employee Group.
Jobs.
Revenue Impact.
Base Pay.
Base Pay Increases.
Variable Pay.
Person-Based Pay.
Health Benefits.
Pension/Retirement.
Perquisites.
Compensation Authority.
Spreadsheet 6: The Exempt Workforce.
Chapter 7: Nonexempt Workforce—The Workers.
Employee Group.
Jobs.
Revenue Impact.
Base Pay.
Base Pay Increase.
Variable Pay.
Person-Based Pay.
Health Benefits.
Pension/Retirement.
Perquisites.
Compensation Authority.
Spreadsheet 7: The Nonexempt Workforce.
Chapter 8: Jobs—Job Analysis: Finally!
Employee Group.
Jobs.
Number of Incumbents.
Revenue Impact.
Job Analysis: Job Descriptions.
Job Analysis: Job Specifications.
Job Evaluation: On Having a Point of View.
Nonquantitative Job Evaluation Methods.
Quantitative Job Evaluation Methods.
Other.
Spreadsheet 8: The Jobs.
Chapter 9: New Compensation Structure—Getting Down to Business.
The “Real” Reason Why You’re Here.
Ancillary Pay.
Flat Rates.
Flat Rates for Jobs in Series.
Salary Ranges.
Salary Ranges with Steps.
Broadbanding.
Commission-Based Salary Structures.
Salary Rates Established by Negotiation.
Variable Pay.
The External Labor Market.
Constructing Salary Ranges.
Adjusting Flat Rates.
Exempt/Nonexempt.
Range Code.
Employee Group.
Jobs.
New Salary Range.
Spread Percentage.
Steps.
Flat Rate.
Commission.
Person-Based Pay.
Variable Pay.
Benchmark.
Primary Influence.
Spreadsheet 9: New Compensation Structure.
Chapter 10: Performance Management—Pay for Performance or Pay for Promotions?
Your Performance Management Mission.
Internal and External Authorities.
Budget Impact.
Organizational Culture.
Supervisory Attitudes.
Measurement Basis.
The Importance of Promotions.
Employee Group.
Jobs.
Revenue Impact.
Performance Review Schedule.
Salary Increase Schedule.
Compensation Arrangement.
Base Salary Increase.
Variable Pay.
Measurement Basis.
Performance Review Technique.
Spreadsheet 10: Performance Management.
Chapter 11: Maintenance—Is It That Time Already?
Employee Group.
Jobs.
Status.
Job Description.
Job Evaluation.
Turnover.
Compensation Arrangement.
Impact.
Management View.
Spreadsheet 11: Maintaining the Structure.
Chapter 12: Conclusion—The Bottom Line.
Nature of Revenue.
Relationship between Organizational Success and Revenue.
Pay for Performance or Promotion.
Coordination within the Organization.
Appendices.
Appendix A: Survey—Compensation in Nonprofit/Public Organizations.
Appendix B: Complete Spreadsheet Workbook.
Appendix C: HRIS Data Elements—Summer 2004.
Bibliography.
Index.