The topic of remuneration is an important part of the planning process when parish leaders consider adding to their staff. Compensation is most likely your top expense. Once you identify your needs and how to meet those needs it is then time to see what financial resources can be committed to this. We have provided a separate section on compensation because what you pay someone and how you make decisions about this can profoundly affect the quality of your parish’s ministry. It can also affect your ability to attract and retain reliable, productive lay pastoral assistants.

The terminology of employee compensation can be confusing. The following guide to terms is adapted from Human Resources Kit for Dummies:

Compensation – This refers to any remuneration that employees receive in exchange for their work.

Base wage or salary – This is the pay that employees receive before any types of deductions.

Benefits – Any perks (e.g. health insurance, paid vacation) provided by an employer in addition to wages or salary.

Exempt workers – These are employees who are paid as a flat weekly, biweekly, or monthly amount, regardless of how many hours they work.

Non-exempt workers – These are full time employees who are paid per hour.

Think strategically about compensation, keeping the needs and ministries of your parish in mind. Here are some good questions to guide your planning:

• Do your staff members feel they receive a fair and equitable wage for the work they perform?
• Are your payroll costs in line with the overall financial health of your parish?
• Is your basic philosophy of compensation clearly understood by all your staff and does it have the strong support of you, the parish council, and the employees alike?
• Does the pay scale for the various jobs in the parish reflect the relative importance of the job and the skills that performing those jobs requires?
• Are your compensation policies in line with state and federal laws involving minimum wages and job classifications?
• Can the candidate reasonably live in your area with the salary you provide?
• Is your salary range too low for a full-time employee? Should you consider hiring a part-time employee?
• Have you conducted research on how similar jobs in your area compete with this job? Consider looking at teacher salaries in your area or hospital chaplains.

Most parish leaders find working with a human resources professional very helpful in sorting out all the complexities of creating a compensation program. Many find legal counsel helpful too.