1. Staffing—Class 3

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3. 10 Webinar Discussions 1.Hiring—David Lyons. April 22 2.Hiring, part 2—Dr. Bill Egner. April 29 3.Compensation—Sutton Turner. May 6 4.Compensation—May 8 (9 am) & May 13 5.Reviews—Dr. Paul Utnage. May 20

4. Note Special Times  Compensation  May 8 (9 am)  And May 13  Terminations  Tuesday, May 28 at 2 pm  Not Monday, Memorial Day, the 27 th

5. Today’s Class Part 1—Introduction, 10 min. Part 2—Interactive Lecture with Sutton Turner, 40 min. Part 3—Q & A, 30 min.

6. Staffing, Class 3: Compensation The Puritans supposedly said, “God, you keep our pastors humble and we will keep them poor.” At what standard should church staff live at? How do you determine fair and just pay? This session will present the elements and examples of excellent staffing pay grids. The role of a compensation analysis will be explored. This all goes into the annual process of determining raises and the potential role of bonuses. For the Q&A time, consider questions that address the motive and method in compensation, not just the numbers.

7. Required Reading  Caesar Takes A Pastor’s Salary by Dr. David Fletcher www.xpastor.org/money/housing- allowance/caesar-takes-a-pastors-salary  Before You Pay the Pastor by Richard Hammar, JD, CPA www.xpastor.org/banner/before-you-pay-the- pastor

8. Suggested Reading  Paying the Executive Pastor: How Much is Enough? By Dr. David Fletcher http://www.xpastor.org/staffing/compensation- raises/paying-the-executive-pastor-how-much-is-enough (be sure to read the accompanying PDF file)  2012-2013 Compensation Handbook for Church Staff http://store.churchlawtodaystore.com/20cohaforchs.html

9. Participate in a Compensation Survey  Compensation Survey of Executive Pastors www.xpastor.org/staffing/compensation- surveys/executive-pastor-compensation  Compensation Survey of Senior Pastors www.xpastor.org/staffing/compensation- surveys/senior-pastor-compensation  Compensation Survey of All Staff www.xpastor.org/staffing/compensation- surveys/whole-church-compensation

10. Assistant Professors Dr. Bill Egner Dr. Brad McKerly

11. Sutton Turner Sutton Turner is the Executive Pastor of Mars Hill Church of Seattle, Washington—14 campuses with 14,000 in worship each week. He oversees all church operations— finance, communication, property, etc. In 2011, the Turner family moved around the world to be a part of Mars Hill. Sutton left a lucrative job in the Middle East to use his gifts to serve the church. He has a degree from Harvard Business School, led multibillion-dollar organizations, and even worked as an executive pastor for a number of years at a large church in Texas.

12. Salary Grids An Inductive Lesson on Setting a Compensation Grid

13. Pastors Quad 1 Quad 2 Quad 3 Quad 4Salary AverageQuad 3 Sr. Pastor/Lead Pastor$105,000$115,000$125,000$135,000$125,000 Executive Pastor$85,000$95,000$105,000$115,000$105,00084% Pastor Team Leader$62,000$69,500$77,000$84,500$70,50073% Pastor$52,000$57,000$62,000$67,000$57,50081% Associate Pastor$41,000$44,000$47,000$50,000$44,10076% *all pastors are exempt as "professionals" *pastors pay the full 15.3% of "social security tax" *lower pastoral salaries by 7.65% to compare to business

14. Raises with a Grid Advancing in Quads 1.Experience 2.Expertise 3.Education 4.Performance 5.Alignment with vision 6.Team player Exact Salaries? Quads are not to be exact salaries but guides for determining salaries

15. Ministry Staff Quad 1 Quad 2 Quad 3 Quad 4Salary AverageQuad 3 Ministry Director (exempt)$50,000$57,500$65,000$72,500$52,500 Associate Director (exempt)$42,000$46,000$50,000$54,000$46,30077% Program Staff$36,000$40,000$44,000$48,000$43,40088% Tech Team$20,000$24,000$28,000$32,000$25,10064% Intern$18,000$19,000$20,000$21,000$19,00071%

16. Why a Salary Grid  The Salary Guide gives a metric to examine titles and salaries.  By establishing fair, national-level salaries, The Salary Guide retains quality staff.  By having quads, the process of giving raises has standards and pre-determined levels of accomplishment and skill.  The Salary Guide is reviewed every two or three years.

17. Finance & Office Staff Quad 1 Quad 2 Quad 3 Quad 4Salary AverageQuad 3 Business Office CFO/Treasurer (exempt)$60,000$67,500$75,000$82,500$91,400 Manager (exempt)$40,000$45,000$50,000$60,000$63,00067% Accounting & HR Assistant$34,000$38,000$42,000$46,000 84% AP & Donor Records$30,000$33,000$36,000$39,000$39,50086% Office Staff Exec. Assist (exempt)$35,000$39,000$44,000$48,000$35,500 Office Manger (exempt)$30,000$34,000$38,000$42,000$32,00086% Coordinator$26,000$30,000$34,000$38,000$29,40089% Admin. Assistant$23,000$27,000$31,000$35,000$25,10091% Receptionist$20,000$23,000$26,000$29,000$21,00084%

18. Identify Problems  Mismatches of titles with positions  Some newer pastors are not receiving a housing allowance and are receiving social security  Some women function as “commissioned” directors and should be receiving housing allowances.  The annual review process is under study and improvement.  Some staff are being underpaid, less than Quad 1.  The most pressing issues will be addressed in the coming fiscal year. Some issues will take several years to resolve.

19. Facilities Quad 1 Quad 2 Quad 3 Quad 4Salary AverageQuad 3 Department Head (exempt)$51,000$55,000$59,000$63,000$59,600 Maint. Supervisor (exempt)$34,000$37,000$41,000$44,000$34,10069% Maintenance: Tehnical$30,000$34,000$38,000$42,000$31,10093% Custodial Supervisor$23,000$27,000$30,000$33,000$23,40079% Lead Custodian$20,000$23,000$26,000$29,000$20,10087% Custodian$18,000$21,000$24,000$27,000$19,27492%

20. Basis First is the existing salary structure of our church. All titles and salaries have been examined and compiled into categories of personnel. Second is national salary guides and surveys:  Leadership Network Salary Survey  National Association of Church Business Administrators, Salary Survey.  XPastor’s Top to Bottom Compensation Surveys

21. Q & A Send Questions via Chat to Tami Consider questions that address the motive and method in compensation, not just the numbers.