Determining the salary range for an open position is a difficult task. Nonprofits should create a comprehensive salary structure and pay scale for the entire organization, and lots of factors should be considered. We will discuss this process in another article. Today, we will focus on transparency.
Lack of salary transparency is a major problem in the world of nonprofit recruitment. Public Good Talent is based in Denver, so we will focus on Colorado for the moment. On the date of publication, the front page of the Colorado Nonprofit Associate Job Board contained 25 job announcements. Of those 25 postings, 12 of them did not include a salary range. That is a full 48% of postings that were unclear about how much they would pay the potential employee. Most of those postings included language such as “Competitive salary based on experience and qualification.”
This is not a good practice. Let’s talk about why.
Salary matters
Culture. Perks. Flexibility. Mission. All of these things are important, but they are not more important than pay. PayScale surveyed over 70,000 employees to examine the relationship between salary and workplace engagement. The results showed that an organization’s ability to clearly discuss compensation was one of the top predictors of employee sentiment, including “satisfaction” and “intent to leave.” Transparent discussion of pay was found to be more important than other measures of employee engagement, such as advancement opportunities, employer appreciation, and enthusiasm for the organization. In short, there are lots of factors that determine an employee’s level of engagement, but compensation is still the primary driver.
Honesty is always the best policy
As a nonprofit leader, you work hard to improve your community and make the world a better place. Integrity and decency are part of your DNA, and they should be a part of your organization’s DNA, too. Given the choice between honesty and obfuscation, which reflects the culture you are trying to create?
While the other points in this article are practical considerations that apply to all employment sectors, the question of honesty is particularly important for small nonprofits. With your modest organizational budget, you will never be able to outspend large corporations and attract candidates through staggeringly large salaries. But being transparent about your salary range sends a powerful message: We care about honesty, and we are not going to bulls#*t you.
Candidates interpret your lack of a salary as a low salary
If your open position has a much higher salary than similar positions in the sector, you would be transparent about that, right? Of course you would. You want to attract the best and brightest, and if you are offering a large salary, that is a huge selling point.
Candidates know this. They understand that a high salary is a major selling point, and they correctly assume you would advertise the salary if it were truly competitive. Conversely, they also make this logical assumption: if the salary is not advertised, it must be pretty low. If a candidate is on the fence about applying for a position, the lack of a clear salary range can be a deciding factor.
Respect your candidates’ (and your own!) time
Right or wrong, the job application process seems to get long from year to year. While the length of the interview process varies based on role, industry, and location, the trend is clear: In a world focused on quickness and efficiency, recruitment is an exception. A recent Glassdoor study found that the average length of the hiring process in the U.S. is nearly 24 days, which some roles taking an average of 50 days or more. In addition to the length of the process, employers are increasingly requiring more upfront work from the applicants. For example, in addition to the standard phone and in-person interviews, it is not unusual for an employer to ask a candidate to submit a homework assignment and participate in a meet-and-greet with the other team members.
This increasing investment, both in terms of time and energy, is a major reason to be honest about your salary range. Put yourself in the shoes of the candidate: Can you imagine spending nearly a month participating in a laborious interview process and then discovering that the role pays half the salary you were expecting? What a waste of time! And the candidate is not the only one wasting their time. Think of how much time your existing staff is spending screening resumes and conducting interviews with people who would not actually be interested in the role if they knew the salary range.
If you are ashamed to post your salary range, ask yourself some deeper questions
For a moment, let us assume that you are hesitant to post your salary range because you know it is not truly competitive. This is a natural inclination; no one wants to be seen as stingy or under-resourced. However, this inclination should prompt some additional questions: Why are we not able to offer a competitive salary for this position? Is this the absolute best we can do, or are we being overly frugal? If we offer a subpar salary, will we receive subpar performance? Is this salary an accurate reflection of our organization’s priorities? If we cannot afford a competitive salary, should we reevaluate the requirements for this position to better align with our budget?
Sometimes a low salary is an accurate reflection of your priorities, and this is okay
Not all organizations can afford to pay a lavish salary for every position. Nonprofits must make difficult decisions about priorities, and you may need to spend less on a particular role to allow yourself to spend more money in other areas. This is okay! This article cannot change the reality of your organization’s budget.
However, when you cannot offer a competitive salary, honesty is still the best policy. Always be clear about what you can offer. You have nothing to gain by keeping secrets. Here is some sample language for when your salary range is below the industry norm: “We are offering a salary of $ABC-XYZ for this position, depending upon experience and qualifications. This is a great opportunity for someone seeking to learn on the job and make a difference in their community. We offer countless professional development opportunities, and we expect this person to grow and take on additional responsibilities. Excellent performance will be rewarded with advancement opportunities and increased compensation.”
This type of language makes it clear that you understand the reality of the situation. You cannot always afford to hire someone with decades of senior-level experience, but you can invest in this person’s career in a manner that will allow for a more generous salary in the future.
Public Good Talent is a boutique recruitment firm serving nonprofits and small businesses who are working to improve their communities. Based in Denver, Colorado, PGT serves organizations across the country.
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