Coordinating Ambitions and Compensation In The Non Profit World
When an increase in revenue results in an increase in pay, employees become more motivated to work. The top down method is when a non profit’s mission and goals motivates plans. A non profits business plan leads the organization towards it’s goals. Compensation plans are built as foundations of anon profits financial and strategic goals.
You must start with your revenue growth, how will your non profit increase donations and grants, will your non profit develop a new service or assist a new constituency? After your plans to expand your Non Profit, you have to consider your employees and how to compensate them for helping the non profit approach its goals. Donation and grant writers are motivated by commissions, but you can come up with other ways to compensate them to show that you appreciate their hard work. You can compare non profits revenue goals against total (realistic) quota. Goals should be individualized to each fund raiser representative. The further the fund raiser exceeds his/her goals, the larger the compensation. Each fund raiser representative can also be motivated and rewarded for the department’s overall success. Other incentives and rewards can be created for the department. Regular performance reviews are valued by the employee and reminds managers how hard each employee is working.
When designing a compensation plan, consider your non profits goals, talk to your board or executive director, and study other compensation methods. When your plan is finalized, make sure your goals and your compensation plan cooperate.
For additional ideas on how to generate revenue or lower the cost structure for your non profit ; we encourage you to contact Metropolitan Risk Advisory.
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