Compensation in Your Organization: Three Actions You Can Take Now

If you attended the Nonprofit Summit or you’ve reviewed the recently updated Together SC guiding principles, and compensation study you maybe wondering (or worried?) about compensation in your organization.

For nonprofits and mission-driven organizations, implementing a compensation philosophy that ensures market-based, livable wages and meaningful benefits is essential to attracting and retaining talent while advancing impact.

If you are unsure where to begin, consider these three steps to begin moving toward a compensation structure that aligns with best practices and our guiding principles.

1. Define (or Refine) Your Compensation Philosophy

A compensation philosophy is your organization’s north star for how you pay people. It should clearly articulate your commitment to:

• Market competitiveness
• Internal equity
• Livable wages
• Benefits that support employee wellbeing

Start by asking:

• Do we aim to lead, match, or lag the market?
• How do we define “livable compensation” in our community? MIT’s living wage data is a great reference.
• What role do benefits play in our total rewards strategy?

Documenting these decisions creates consistency, transparency, and accountability. It also provides a framework for making tough budget decisions without losing sight of your values.

2. Benchmark Using Current Market Data

Market-based compensation requires that you understand the current market. This is where salary benchmarking is important.

Leaders should:

• Become familiar with reputable, up-to-date salary data like the Together SC 2025 salary study. If your organization includes different types of positions, look to other professional associations for salary data.
• Compare current roles against similar positions in peer organizations.
• Identify gaps where employees may be underpaid relative to the market.

The 2025 salary study is an especially valuable tool because it reflects recent economic shifts, inflation impacts, and evolving expectations around benefits like health insurance and retirement contributions.

This step doesn’t require immediate across-the-board changes, but it does give you a clear picture of where you stand and where to prioritize adjustments.

3. Strengthen Total Compensation: Pay + Benefits

Compensation is not just salary. A truly livable and competitive approach includes benefits that support long-term stability and wellbeing.

Focus on:

• Health insurance access: Ideally, a health insurance plan is affordable and provides meaningful coverage, but if you aren’t able to provide an employer-sponsored plan, consider other creative options like an ICHRA, QSEHRA, or health stipends.
• Retirement options: Offer employees the opportunity to contribute to retirement plans, ideally with some level of employer support over time.
• Creative and inclusive solutions for time away from work: Consider your employee population in determining the best approach for paid time off, wellness days, volunteering time, sabbatical leave, short-term disability, etc.
• Incremental improvements: Again, if budget constraints exist, consider phased enhancements.

Even small steps, like introducing a retirement plan or increasing employer-paid premiums, show your commitment to employees’ futures.

You may feel overwhelmed when recognizing the gaps in your organization and you may not be able to make necessary adjustments in one budget year. Use these considerations to develop a feasible implementation plan and garner board support. As you consider the best approach for your organization, remember that this work is about alignment: aligning your compensation practices with your mission, your values, and the reality of what your employees need to thrive.