Compensation could be a politically charged situation for nonprofits. On one particular hand, most organizations ought to spend enough salaries to attract competent and qualified many people. Alternatively, yet, there’s continually a sentiment that just about every dollar spent on executive salaries is known as a dollar that is subtracted from intended nonprofit system beneficiaries. Fortunately, compensation committees may help bridge the gap.
The function of a compensation committee commonly contains the following duties:
- Researching what equivalent organizations spend: This investigation contains identifying equivalent organizations and positions involving equivalent ability sets.
- Documenting how the committee tends to make compensation choices: This documentation is very important considering that if salaries are questioned, the committee requires to become capable of clarify how it decided on the salary it ultimately awarded.
- Awarding raises: Commonly compensation committees are charged with evaluating staff, documenting the outcomes of efficiency evaluations, and deciding the amount of raises and bonuses to award.
Elmer Tamayo is the author of myaccountinginfo.net who took-up his degree of "BS in Accountancy" major in accounting. A Web designer and blogger, His passion is Reading books, searching new tech update on the world wide web. Read More...
