1. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey HIGHLIGHTS AND TRENDS May 12, 2016 Sponsored by CompassPoint Nonprofit Services

2. Do you regularly use compensation surveys as a part of your job?

3.  1. Compensation Surveys  Purpose  Use  2. Fair Pay for Northern California Nonprofits 2016 Survey  Methodology  Highlights & Trends 3

4. Purpose: The purpose of a compensation survey is to provide a “snapshot” of the labor market as accurately as possible, so that nonprofit managers can make well- informed decisions about paying their employees. 4

5. Characteristics of employers that tend to influence pay levels: 1.Job location 2.Organizational size (financial and/or number of employees) 3.Industry 5

6. Characteristics of employees and jobs that tend to influence pay levels: 1.Tenure at company and/or in job 2.Years of related experience 3.Level of education 4.Specific credential relevant for job 5.Supervisory responsibility 6

7. Pay Philosophy: Where does an organization generally want its pay levels to be in comparison to the market? 7

8. To your knowledge, has your organization developed an overall pay philosophy? If yes, how well do you think the organization practices it? Please choose a rating on a scale of 1 to 5, where 1 is high compliance with the pay philosophy and 5 is low compliance.

9. Use: Employers use compensation survey data to set competitive pay levels for their jobs, often by designing a salary structure that considers both external data (i.e. survey data) and internal job comparisons. 9

10. Considerations for using survey data: A. Data sources Location, size, field of source organizations B. Job matches How similar are our jobs with jobs from data sources? C. Effective date of market data Should we adjust for time elapsed since data was reported? 10

11. Internal job comparisons: The purpose of job assessment is to ensure that pay levels of jobs within departments and across the company are fair in relation to each other. 11

12. Prevent: Underpaying Overpaying Pay Compression 12

13. Methodology: Effective date: January 1, 2016 200 surveyed jobs in 21 job categories 582 participating organizations (self-selected) Job descriptions for matching rather than job titles only 13

14. Are you familiar with Fair Pay for Northern California Nonprofits? If yes, did your organization participate in the recently published 2016 survey?

15. Executive Administrative Accounting/Finance Animal Welfare Cultural, Artistic, Performing Arts Development Education & Recreation Employment/Work Training Food Service Foundation/Philanthropy Gift/Thrift Shop, Warehouse & Food Bank 15 Job categories: Government Affairs, Advocacy, Research Housing/Community Development Human Resources Information Technology Legal Services & Community Organizing Medical & Clinical Services Operations Program Management Social Services & Mental Health Volunteer, Membership & Marketing

16. Five organizations are required to report aggregate data. Five employees are required to report median, average by job, average by employer. Twelve employees are required to report 25 th and 75 th percentiles. If 40% of data comes from a single company, only the average by company is reported. 16 Data Confidentiality

17. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Average Base Salaries: 2001 – 2016 Annual % Increase 2001 2008 2015 20162001-162008-162015-16 Executive Director/C.E.O.$81,942$112,601$142,612$145,6843.91%3.27%2.15% Chief Financial Officer65,01794,378126,219133,8974.93%4.47%6.08% Development Associate31,97740,02245,03845,5272.38%1.62%1.09% Human Resources Manager49,80460,07171,53273,1472.60%2.49%2.26% Human Resources Assistant30,48136,67040,59940,6071.93%1.28%0.02% Staff Accountant39,42148,17653,18054,5272.19%1.56%2.53% IT Manager41,32059,82476,19279,4464.46%3.61%4.27% Facilities Manager46,06361,06775,28176,8333.47%2.91%2.06% LCSW41,13153,52861,71464,7523.07%2.40%4.80% Case Manager30,73138,54643,56543,0012.27%1.38%-1.29% Program Coordinator, SS/MH34,73244,25549,34648,1322.20%1.06%-2.46%

18. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Average Full-Time and Part-Time Turnover Rates: 2008 – 2016 Total # of Employees 20082010201220142015 FTPTFTPTFTPTFTPTFTPT 1 – 925%31%14%15%18% 19%17%19%25% 10 – 2422%21%11%15% 18%17%20% 25 – 4921%31%13%17%12%13% 17%14%16% 50 – 9921%28%14%15% 21%19%21%22%20% 100 – 19921%34%13%21%16%23%15%22%19%21% 200+23%28%17%20%17%21%16%21%18%16% Overall22%29%14%19%16%20%17%20%18%19% 2016 Total # of FTEs FTPT 17%19%1 – 5 19%15%6 – 15 17%18%16 – 40 19%23%41 – 100 18%24%101+ 18%21%Overall

19. How concerned are you about staff turnover during the next 12 months? Please choose a rating on a scale of 1 to 5 where 1 is very concerned and 5 is not at all concerned.

20. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Average Employer Contribution to Insurance Benefits: 2004 – 2016 200420062007200820092010201120122013201420152016 $ cost per month per employee $377$416$439$484$486$554$556$589$603$652$669$682 % of employers paying 100% of medical insurance cost for employees 68%70%68% 70%68%67%66%67%68% % of employers paying 100% of medical insurance cost for dependents 13%9%8% 9%6%5%4%6% 5% % of employers offering an HSA- compatible plan n.a. 18%25%29%23%29%32%27%24%27%

21. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Organization Contributions to Retirement Plans: 2004 – 2016 20042006200820092010201120122013201420152016 % of organizations providing some type of retirement plan 82% 81%78%76%78%79% 80%77% Of those, % that contribute to plan 75%74%79%77%76% 74%76%78% 76% Average % of salary contributed 5.7%5.4%5.3%5.4%5.1%5.3% 5.2%5.1% 4.6%

22. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Bonus/Incentive Pay for Executive Directors: 2004 – 2016 20042006200820092010201120122013201420152016 # of employees277330337284398416384415497520546 % of employees eligible for bonus or incentive pay 27%32%33%40%38% 41%43%45% 46% % of employees who received bonus or incentive pay 17%20%19%21%17% 22% 23%24%25% median amount$4,050$5,000 $8,665$8,100$7,250$7,000$5,581 average amount$9,033$11,175$7,463$10,144$8,812$8,935$13,026$10,549$11,875$12,215$12,216

23. At your organization is there an opportunity for bonus or incentive pay for any employees? Possible answers: Yes, all employees Yes, some employees No

24. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Salary Increase Budgets: 2004 – 2016 20042006200820092010201120122013201420152016 Total # of Organizations 288341329281419408402434520547582 # Reporting Salary Incr. Budgets 206297298183242246266308380429472 % Reporting Salary Incr. Budgets 72%89%91%65%59%60%66%71%73%78%81% Increase Budgets: All Orgs 25 th percentile 0.0%2.5%3.0%0.0% 1.7%2.0% Median 3.0% 2.5%2.0% 3.0% 75 th percentile 4.0% 4.5%3.0% 3.5% Average 3.1%3.2%3.4%2.1%2.0% 2.2%2.5% 2.7%2.8% Increase Budgets: Orgs w/Increases 25 th percentile 3.0% 2.5%2.0% 2.2%2.8%2.5%2.7%2.6% Median 3.5%3.0% 75 th percentile 5.0%4.0%5.0%4.0% Average 4.3%3.7% 3.2%3.4%3.2%3.3%3.5%

25. Is your organization giving regular pay increases during the current fiscal year? If yes, what is the approximate average increase? Possible answers: up to 2% 2% to 3% more than 3%

26. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Executive Director/CEO Compensation: Male and Female % Male Avg Pay: % Female Avg Pay: Avg Female Pay/ Annual Operating Expenses Emps Males Emps Females Avg Male Pay To $499,999 $500,000 - $999,999 $1,000,000 - $2,499,999 $2,500,000 - $4,999,999 $5,000,000 - $8,999,999 $9,000,000 - $14,999,999 $15,000,000 and more All Responses 28% 25% 42% 41% 52% 57% 42% 72% 75% 58% 59% 48% 43% 58% 98% 92% 96% 102% 99% 93% 87% 85% $75,675 103,402 120,126 138,730 164,867 201,722 237,469 159,700 $74,060 94,948 115,329 141,865 163,270 187,068 210,433 133,200

27. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Geographic Differentials within Northern California: 2004 – 2016 Overall compensation levels by county area as compared to the total survey sample 20042007201020132016 Alameda/Contra Costa102%100%101% 100% Central Coast94%96%97% 95% Marin105%104% 106%105% Napa/Solano/Sonoma86%91%96%92%94% Sacramento Region96%93%95%92%90% San Francisco106%105%104% 106% San Mateo/Santa Clara104%105% 104%105%

28. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Impact of the Economic Environment: 2016 % Yes % No Do you anticipate that increased competition from other employers will present a challenge to your organization in the year ahead? Do you see turnover as a significant problem for your organization in the year ahead? Overall, does your organization plan to increase the number of full-time equivalent employees in the year ahead? Is your organization currently operating under a temporary hiring freeze? If Yes, do you plan to lift this freeze in the year ahead? 73% 37% 48% 4% 64% 27% 63% 52% 96% 36% In the year ahead, does your organization plan to increase, keep about the same, or reduce the cost: of employee medical insurance of retirement benefits of other employee benefits Increase Same Reduce 15% 8% 21% 81% 91% 76% Yes, Yes, Entire Yr Part Yr No In the year ahead, do you expect your organization to be operating under an employee salary freeze? 4% 1% 3% 2% 4% 94%

29. From the perspective of your organization, what is your expectation of the local economic environment over the next 12 months? Possible answers: I expect conditions to improve I expect conditions to stay about the same I expect conditions to get worse

30. Fair Pay for Northern California Nonprofits: The 2016 Compensation & Benefits Survey Impact of Recent Ordinances Increasing Minimum Wage: 2016 % of Organizations Organization has developed a formal plan with respect to employee compensation in response to the ordinance. Organization has discussed the issue but not yet developed a formal plan. The minimum wage increase may affect the organization in the future, but it has not yet been addressed. The minimum wage increase does not affect the organization in the near future so It has not been discussed. 26% 12% 5% 57% Of organizations that have either developed a formal plan or discussed the issue: 61% 10% 16% 13% Compensation is being adjusted only at the minimum wage level. Compensation is being adjusted for some nonexempt employees whose current pay is above minimum wage. Compensation is being adjusted for some nonexempt employees whose current pay Is above minimum wage and also for some exempt employees. Compensation is being adjusted for most or all employees.

31. Is your organization located in a city subject to a local ordinance increasing the minimum wage? If yes, choose the statement below that best describes your organization’s response to the increase: 1. Organization has developed a formal plan with respect to employee compensation in response to the ordinance. 2. Organization has discussed the issue but not yet developed a formal plan. 3. The minimum wage increase may affect the organization in the future, but it has not yet been addressed. 4. The minimum wage increase does not affect the organization in the near future so It has not been discussed. If your organization has a formal plan or has discussed the issue, choose the statement below that best describes your organization’s likely response with respect to compensation adjustments: 1. Compensation is being adjusted only at the minimum wage level. 2. Compensation is being adjusted for some nonexempt employees whose current pay is above minimum wage. 3. Compensation is being adjusted for some nonexempt employees whose current pay Is above minimum wage and also for some exempt employees. 4. Compensation is being adjusted for most or all employees.

32. Nonprofit Compensation Associates www.nonprofitcomp.com rita@nonprofitcomp.com 510-645-1005