Why Salary Research Matters for Hiring
There’s a harmful misconception out there that nonprofits should pay less than everyone else because they are nonprofits.
We all know we’re not getting into this work to get rich. But did you know that a recent report showed that 22% of nonprofit workers earn so little they qualify for financial hardship assistance?
When nonprofits underpay staff, they not only increase the risk of turnover (which delays community programming), they also risk adding to the very issues – poverty, food insecurity, etc. – they are trying to solve.
(Can you tell this is an issue I’m passionate about?)
Offering a fair salary can improve retention, show your team they are valued, and attract top talent (who doesn’t want top talent trying to solve these huge social issues?).
Where to Find Reliable Data
One issue might be that we just don’t know what “fair” actually looks like here.
According to HR experts at Beqom, “fair compensation refers to providing employees with pay that appropriately reflects their roles, skills, experience, and performance, rather than being influenced by demographic factors such as age, ethnicity, and gender.”
Here are a few trusted resources to help you get started:
Even a quick scan of these reports can help you feel more confident about what’s fair. You might also be able to find state-specific data if your state’s nonprofit association does this research annually (several do).
💡 Tip: If you can’t find your exact job title, look for roles with similar responsibilities or required skills (yes – even in for-profit companies). The key is to get a range you can adapt to your nonprofit’s unique needs.
Tips for Interpreting the Data
Once you have salary data in hand, keep these tips in mind:
- Adjust for local differences: Cost of living can vary a lot between cities or rural areas, so consider what’s typical for your community.
- Think about organizational size and scope: Salaries at a 2-person nonprofit look different from those at a national organization. Larger nonprofits with more extensive operations and fundraising capabilities typically offer higher compensation.
- Factor in total compensation: Benefits, flexible schedules, and growth opportunities all matter. The Council of Nonprofits reminds us that total compensation goes beyond salary. It’s the full package of how your organization invests in and supports your team.
It might feel like a lot, but starting with just one small step, like pulling a salary report, can set you on the path to building a more equitable workplace.
Checklist to Hire Your First Employee 🚀
If you're preparing to hire paid staff for your nonprofit, I also have this helpful video providing a Checklist to Hire you might want to check out!
