11 Sep Church salaries and the current economy
Church salary increases are not keeping up with the rate of inflation. For ministry employees, this means the money they are bringing home, even if it is more than it was last year, isn’t going as far as it used to.
As costs of housing, groceries, and other household costs continue to rise, what can ministries do to try and keep up?
A recent Salary Trend Report, sponsored by The Church Network, found that the median salary of 10 key positions in churches studied showed an overall increase in actual dollars paid over the last few years; however, when compared to the rate of inflation, the increases did not keep up. This data means the actual value of staff compensation has decreased, because the purchasing power of church employees has decreased with inflation.
In addition to the pressures employees might be facing, churches are feeling the same financial pressures, as their money doesn’t seem to go as far either, with costs of utilities, maintenance and supplies continuing to increase.
In an election year, when financial radars are up, and uncertainty lingers, churches should take a look at their financial reserves, overall cost of operations, giving trends and expectations, as well as staff morale. It’s a lot to consider when budgeting for the upcoming year.
One factor to consider: charitable giving
Giving to charity in general has increased over time, but as Giving USA recently reported, the percentage of giving to religious organizations has decreased from 57% of giving between 1984-1988 to only 27% of giving between 2019-2023.
Money magazine estimates that potentially 14% of the more than $84 trillion of wealth that will be transferred from one generation to the next through 2045 will be given to charity. If planned legacy giving is not currently part of a church’s generosity strategy, now is a good time to think about that.
Staff morale — another consideration
As churches consider all the factors that affect what they can pay their employees, another thing to think about is staff morale. Employees want to feel appreciated, and compensation is one way to do that.
It is not the primary motivator for all employees, so other types of appreciation can also be reviewed, such as extra time off, an Employee Appreciation Day, flexible work schedules, celebrating achievements and giving public recognition. However, at the end of the day, those employees who are working well at the church and contributing to the overall mission should be compensated accordingly.
Human resources are the most valuable resources
As church leaders, individuals are placed in our care to be nurtured, mentored, coached, and embraced as part of the team. Most people don’t get into ministry because of the pay — it’s a calling. However, we don’t need to use calling as a weapon against paying people well for quality work and their contribution to God’s mission.
As salaries are considered in the budget for the coming year, reflect on other areas that could be trimmed, or ways you can increase giving to ensure your staff doesn’t just get a check that looks like it’s more than it was last year, but it has more true value in the current economy. Use salary surveys, such as MinistryPay.com, to compare to other churches — but do more than what the average church is doing, because the average church isn’t keeping up.
It’s time to be more than average. Your employees are worth it. The mission is worth it.
Original content by the Church Executive. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.