Is Your Ministry Protected from “Overstaying” Staff?
One of the things we can’t protect a ministry from is an older staff member overstaying their calling at a ministry because they aren’t financially prepared to retire.
Here’s a fairly common scenario to mull over …
The discussion [concerning compensation] was polite but simmering with anxiety:
Attorney: Dan, what are your recommendations for raises?
Dan: Our staff is working hard. Attendance is up 500 people, 25%. Giving is up 35%. We need to give our staff raises.
Attorney: So let me ask my question again, what are your recommendations for raises?
Dan: In the sheet that I handed out, I put 4%. In that WheatFields has never done annual reviews, I am recommending 4% raises across the board.
Attorney: Checking the math on my smartphone, that’s $176,533 in raises – although we should really take the entire benefits budget out of that. I mean medical insurance isn’t tied to salaries but retirement percentages. So essentially you want to do a 2.0% inflation adjustment and that makes sense. You also want to do a 2.0% merit increase for all staff? That won’t encourage your best performers to excel. We need people who can scale with the growth of our church. Is that the best way to invest a number that is closing in on $200,000?
Dan: Um, er, well, wow it is getting hot in here … I wouldn’t have done across the board raises in my business. Yet, our church has been doing raises this way for its entire history.
Entrepreneur: We thought that you were going to bring something new to the table, not this “same old, same old.”
Does this sound like a familiar conversation? Is your Executive Pastor well versed in what is tied and not tied to salaries? Does your Compensation Team have mature, scalable compensation structures? Does your Elder Board know why the staff is paid what it is? Is your church’s compensation rewarding the best performers or the most tenured?
This is often an organizational compensation and personal planning problem. We can’t do much about the personal planning, but we do want to make sure your ministry is doing everything it can from its end to help a pastor financially retire at the appropriate time – that’s why we’re recommending “Smart Money for Church Salaries” to every paid and unpaid church leadership team. ChurchWest Insurance fans can get an exclusive, early-bird discount using the code, below.
Join us in Irvine, CA on September 11, 2018 for a one day workshop, “Smart Money for Church Salaries,” where you’ll learn with David “Fletch” Fletcher, founder of XPastor, as he brings his vast knowledge, expertise, and years of hands-on ministry experience to a ministry near you.
You’ll learn more about how ministries can prepare for future staff and kingdom investment – and it will begin with getting compensation right. Giving confidence to a ministry’s board & compensation committee that the staff isn’t over or under paid, that the finance department is staying in compliance with the IRS, and that the complexities of a pastor’s tax status are simplified will give the ministry confidence in their financial decisions as they move forward into the future and expand their outreach.
This one-day workshop is the BEST way to get your board and paid leadership team on the same page.
This can’t-miss event will be held in Irvine, CA on September 11, 2018.
Early Bird Pricing—$159 each (Code: CHURCHWEST) Regular Pricing—$239 each
You can register, here: http://bit.ly/ChurchWestXPastor
Portions of this article republished with permission from www.xpastor.org