Tag: Staff

Payroll and Budget Changes for 2024

Payroll and Budget Changes for 2024

Payroll and Budget Changes for 2024

While churches continue to face pressure to raise wages and spend more on staffing in general, results from our 2023 State of Church Compensation survey indicate that the job market is beginning to calm down and stabilize. For example, even though 8 in 10 congregations anticipate they will spend more on salaries and overall payroll in the coming year, the number of churches looking to increase their staff size continues to grow.

The data from this year’s State of Church Compensation Survey is divided into two sections: 2023 changes and anticipated 2024 changes.

2023 Changes

In last year’s survey, we reported that “around 40% of churches appear to be targeting an increase of 4-5% in their 2023 budget for salaries, benefits, total payroll, and a cost-of-living-adjustment (COLA). Another 20% of congregations are planning for a slightly higher increase in the 5-7% range.”

As the chart below visualizes, our prediction was very accurate. The only signficant difference was that churches increased spending on salaries by about 0.8% more than predicted, which led to a corresponding increase in total payroll spending. If you dig into the data, this overall increase in spending was driven both by churches making fewer cuts than they anticipated and by some churches spending slightly more than they anticipated.

Overall, 8 out of 10 churches made changes to their payroll (either negative or positive) in 2023. Of these churches, 82% increased wages, 32% increased benefits, and 74% increased overall payroll spending. While responses varied between churches, the overall median increase for salaries, benefits, and overall payroll was 4.875%, 4%, and 5% respectively.

In 2023, only 16% of churches reported decreasing their staff on purpose and only 11% reported decreasing their overall payroll spending. The vast majority of churches (74-77%) surveyed indicated that they increased the amount of money they spent on salaries/wages and overall payroll. Comparing these percentages to last year’s predictions, it is clear that churches simply made fewer cuts to staff and salaries than they predicted. We believe this is because they simply couldn’t afford to lose staff (replacing personnel right now is far more expensive than retaining them).

Slightly fewer churches offered bonuses or gift cards in 2023 (63%) than in 2022 (66%), and of those that offered bonuses fewer still offered them in lieu of permanent salary/wage increases (18% in 2023 versus 22% in 2022).

Data gathered on hiring over the course of the pandemic lines up perfectly with figures gathered last year through our surveys on the State of Church Compensation and The Impact of COVID-19 on the American Church.

As the pandemic officially ended and churches found their “new normal,” the number of churches hiring has increased from 22% to 37.3%. At the same time, the number of churches looking to decrease or maintain their staff size has shrunk from 22% to 16.4% and from 56% to 46.2% respectively. In short, more churches are looking to hire and fewer are planning on letting staff go

One way that churches offset some of the salary/wage increases in light of inflation in 2022, was by cutting or decreasing staff hours. This year’s survey indicates that around 75% of churches decreased the total number of hours worked by staff between 2022 and 2023.

The prevailing reasons that churches cited for cuts included decreasing giving/income (53%), often as a result of decreased attendance (22%), a purposeful or natural decrease in the size of their staff (26%), changes to benefits and/or ministry spending (5-7%), and pressure from increased facility or utilities costs (2%). Many churches noted the decrease in staff hours or paid staff was the result of voluntary attrition—staff left for other better paying jobs, retired, stepped down, or cut back their own hours becase they took on a second job (became bivocational).

This trend in 2023 mirrors feedback in last year’s survey that much of the decrease in staffing expenses was due to voluntary changes (turnover, positions left unfilled, and/or an increase in bivocational work).

Of the 35% of churches that increased the amount they spent on benefits between 2022 and 2023, 28% spent more on retirement matching and 54% spent more on health/dental insurance for staff. Less than 6% of churches were able to decrease the amount of money they spent on benefits in their 2023 budget.

2024 Changes

As churches look to 2024, 72% of churches anticipate they will increase spending on salaries/wages, 35% anticipate they will spend more on benefits, and 70% anticipate they will spend more overall on payroll. At the same time, 74% of churches plan on keeping staff hours the same, while 60% plan to maintain the same number of employees.

If true, this would indicates a course correction may be occuring in terms of hiring and staff expansion. Many of the churches that sought to hire and re-hire staff that left, resigned, or retired during the height of the pandemic are not filling those positions. As these positions continue to be filled, we hope that the job market will stabilize even further.

In 2023, churches are much more aligned on a cost of living adjustment of around 3%. Slightly less than half (44%) of churches plan on applying a COLA of between 3 and 3.5% for their 2024 budgets. Around 20% are targeting a lower COLA of between 1.5 and 2.5%, while 19% are considering a higher COLA of between 3.5 and 4.5%.

The median anticipated increase among the 385 churches that responded is 3.5% for salaries, 4% for benefits, and 4% for total payroll. The average projected increases are slightly higher at 3.9% for salaries, 4.58% for benefits, and 4.5% total payroll.

Based on this data, and armed with the knowledge that not every church was able to increase salaries last year due to inflation, we anticipate a 3.75% increase in spending on salaries, a 4.25% increase in benefit spending, and an overall 4.25% increase in total payroll.

Watch this year’s State of Church Compensation webinar to learn more about anticipated changes and pressures for churches as we prepare to move from 2023 to 2024.

Article written by: ChurchSalary.com

Article taken from here.

MinistryJobs.com/blog

Designating a Housing Allowance for 2024

How Not to Waste Your Churches Money

Designating a Housing Allowance for 2024

The housing allowance is the most important tax benefit available to ministers.

But many ministers do not take full advantage of it because they (or their tax adviser or church board) are not familiar with the rules.

What can church leaders do to help? Consider the following guidance.

Designating a housing allowance for ministers in church-owned parsonages

Ministers who live in a church-provided parsonage or manse can exclude from their income for federal income tax reporting purposes (1) the fair rental value of the parsonage, and (2) the portion of their compensation designated in advance by the church as a “parsonage allowance”—to the extent that it is used to pay for parsonage-related expenses such as utilities, repairs, and furnishings and does not exceed the fair rental value of the home (furnished, plus utilities).

Recommendation. If your pastor lives in a church-provided parsonage or manse, and incurs any out-of-pocket expenses living there (for example, for utilities or furnishings), then have the church designate a portion of the pastor’s 2024 compensation as a “parsonage allowance.” This should be done in December 2023 so that it will be effective for all of 2024. Parsonage allowances cannot be designated retroactively.

Example. Your youth pastor lives in a church-provided parsonage. He is expected to pay his utilities and provide his furniture. His compensation for 2024 will be $35,000. In its December 2023 meeting, the church board designates $3,000 of this amount as a “parsonage allowance.” The youth pastor has parsonage expenses of at least $3,000 in 2024 (for utilities and furnishings). At the end of the year, the church treasurer issues the youth pastor a W-2 reporting only $32,000 as church compensation. The parsonage allowance is not taxable (assuming that it was used for parsonage expenses) for income tax reporting purposes.

Designating a housing allowance for ministers who own their home

Many ministers own their homes. The portion of their compensation that is designated in advance by the church as a “housing allowance” is not subject to income tax to the extent it is used for housing expenses and does not exceed the home’s annual fair rental value (furnished, plus utilities).

Recommendation. If your pastor owns a home, have the church designate a portion of the pastor’s 2024 compensation as a housing allowance. This action should be taken in December 2023 so that it will be effective for all of 2024. Housing allowances cannot be designated retroactively.


Tip. Use the form in “Sample Housing Allowance Resolution for Pastors.”


Key question. Who should designate the housing allowance? In most churches, it will be the governing board. But this is not always the case. Some church boards delegate this authority (and other compensation decisions) to a personnel or compensation committee. In other churches, the membership approves all compensation decisions at the annual business meeting. Whichever method your church uses, be sure that the allowance is designated in advance, and that the action is in writing.

Designation a housing allowance for ministers who rent a home

Many ministers rent their homes. The Apostle Paul did for a brief time during his ministry. Acts 28:30 states that “for two whole years, Paul stayed there in his own rented house.” Perhaps your minister is renting a home or apartment. If so, you should understand that the portion of your minister’s compensation that is designated in advance by the church as a housing or rental allowance is not subject to income tax to the extent that it is used for rental expenses and does not exceed the fair rental value of the home (furnished, plus utilities). See the above recommendations and tips for ministers who own their homes.

Determining the amount of the allowance

How does your church determine the appropriate amount for a parsonage, housing, or rental allowance? A common practice is for churches to provide their pastor with an “estimated expense form” prior to the end of the year. The pastor estimates likely expenses for the following year on this form, and returns it to the board or other body that designates housing allowances. The allowance is based on the pastor’s estimated expenses.

Tip. Sample expense forms are reproduced at the end of chapter 6 in the annual Church & Clergy Tax Guide. There are separate forms for computing parsonage allowances, housing allowances, and rental allowances. This is a simple and convenient way for your church to designate an appropriate allowance.

Tip. Your church should not be too conservative in designating a housing allowance. The pastor cannot exclude from taxable income an amount more than the church-designated allowance. So, your church may want to designate an allowance in excess of a pastor’s estimated housing expenses for the new year.

Tax reporting

Most churches reduce the pastor’s W-2 by the amount the church designated as a housing allowance. But remember that the allowance is not necessarily nontaxable for income tax reporting purposes. For ministers who own or rent their home, the allowance is nontaxable only to the extent that it does not exceed actual housing expenses or the annual rental value of the home (furnished, plus utilities). It is the minister’s responsibility to report any excess housing allowance as taxable income on his or her tax return.


IRS Publication 517 states:

You must include in gross income the amount of any [housing, rental, or parsonage] allowance that is more than the smallest of

  • Your reasonable salary,
  • The fair rental value of the home plus utilities, or
  • The amount actually used to provide a home.

Include this amount in the total on Form 1040, line 1. On the dotted line next to line 1, enter “Excess allowance” and the amount.

Example. At the end of 2023, a church board determined that Pastor T’s compensation for 2024 would be $50,000. It designated $20,000 of this amount as a housing allowance. At the end of the year the church treasurer issues Pastor T a W-2 that reports taxable income of $30,000 (salary less housing allowance). However, Pastor T only has $17,000 of housing expenses in 2024. As a result, taxable income is understated on his W-2 by $3,000. It is Pastor T’s responsibility to report this $3,000 as additional income on line 7a of Form 1040.

Church treasurers should be sure that their pastor is aware of this reporting responsibility. Many pastors erroneously assume that they can reduce their taxable income by the full amount of the church-designated housing allowance. This will be true only if the allowance is less than the pastor’s actual housing expenses and the annual rental value of the home (including utilities).

Amending the housing allowance

What if the housing allowance designated for your pastor turns out to be too low? For example, the pastor has to pay for unanticipated home repairs, or begins to prepay part of the home mortgage loan. Can the church amend the pastor’s housing allowance? Yes it can, but note that the amendment only operates prospectively—from the date of the amendment forward.

For detailed information on the parsonages and housing allowances, see chapter 6 in the annual Church & Clergy Tax Guide.

Article written by: Richard R. Hammar, Attorney, CPA

Article taken from here.

MinistryJobs.com/blog

So You Want to Quit…

So you want to quit.

I get it.

This has been an excruciating crisis to live through and lead through.

While 25% of all workers want to quit their jobs right now, it appears  it may be even worst for church leaders. Apparently, the majority of pastors are at least thinking about it.

In this widely-shared article, Thom Rainer explains that the vast majority of pastors he and his team work with want to quit. The pandemic, division, workload, in-fighting, levels of criticism and loss of momentum in most churches is too discouraging for most pastors.

Thom is right…there has never been a more discouraging season to be a leader. And if your experience is like most pastors, everyone’s angry with you to boot (here’s a post on why everyone’s so mad at you right now).

I recently had a conversation with a top search firm CEO who predicted that next year will be a year of massive turnover in part, because the crisis has made people rethink their options.

I’m writing this post not to convince you to stay where you are, but to think twice before you quit.

Nobody has to stay anywhere forever.

There are good reasons to leave what you’re doing. Over my life, I’ve left fledgling careers in radio and law, exited a  denomination and most recently made another change.

After 25 years of ministry, yesterday I preached my final sermon as part of the teaching team at the church I founded, wrapping up a 5 year succession plan that completes a 25 year ministry.

But there are also bad reasons to leave.

So today, let me be your (free) counsellor/friend. Talk you off the ledge. I’ve needed that conversation more than a few times in my decades of leadership so I could finish instead of quitting.

I’ve been discouraged, defeated, exhausted and pretty much done more than once. But I never left in those seasons.

Looking back, I’m so grateful I didn’t.

So what do you want to do when you want to throw in the towel?

Here are a few things I learned about quitting for the wrong reasons, and a few things about leaving for the right ones.

1. Quitting is Different than Finishing

Quitting is easy. Finishing is hard.

Both quitting and finishing result in the same outcome: you leave. Nobody, after all, stays forever.

But quitting usually involves surrendering to the pain or letting the circumstances control your exit.

By contrast, finishing usually involves pushing through the pain to a moment or season where the circumstances move both you and the mission forward as best you can.

Leaders who quit usually surrender to impulse or unresolved pain. Leaders who finish well don’t.

As a result, leaders who finish well leave far different legacy than leaders who quit.

2. Your Exit Becomes Your Legacy

On that note, your exit determines the legacy you leave behind, both for the organization and for you personally.

People rarely remember how you started in an organization. They always remember how you left.

You can erase years of great leadership in moments with a poor exit. Quitting because you’re frustrated, discouraged, defeated or exhausted rarely creates a great departure.

The way you leave becomes your legacy.

Years or decades of sincere, hard, good work can get reduced to a sentence like “Yeah, he just packed up and left town”, “He got so bitter at the end”, “She burned every bridge” or “His last year left us all scrambling”.

Ouch.

3. Your Problems Follow You

You’ve probably heard the marriage advice (or given it) that all your unresolved issues follow you into your next relationship.

The same is true of leadership.

Relationally, starting over with someone new usually sounds way more promising than it is. Why? Well, you have a pretty realistic (pessimistic) view of the person you’re with which you’re  ready to trade in for an idealistic view of the person you want to be with. In your mind, this new person is perfect, while your present partner is sooooo inferior.

Of course, what you’re forgetting is not only is that picture inaccurate on both counts, but this: You bring yourself with you wherever you go.

Whatever issues you don’t resolve now, you’ll have to resolve in the future.

The same is true in leadership. You have a very realistic view of how hard your current situation is.

But you imagine your new situation with an idealistic view point. They’ll appreciate me. They’ll do what I ask them to do. Their team won’t argue.

That, of course, is also what you thought the last time.

Here’s what I’ve learned: your unresolved issues follow you wherever you go.

We went through a really painful season of leadership about 15 years ago. I wasn’t tempted to leave the church, but we were selling our house around the same time.

I was really tempted to leave the community I was living in and move to a different city nearby. We could start over again, I told myself.

But as my wife and I prayed about it, I became convicted we need to stay. We move ten minutes down the road.

Which meant we’d travel the same roads, shop in the same stories, get groceries at the same supermarket, and run into the same people we had struggled with.

It was exactly the right medicine. That forced me to look at my own failings, to see where I was wrong, and to practice forgiveness.

Escape is poor substitute for personal growth, forgiveness and change.

The challenge with quitting is that your issues and problems come with you. They didn’t quit, you did.

4. Running toward your future is better than running away from your past

So maybe you are called to leave (here are 7 signs it’s time to move on). Maybe your season is legitimately coming to an end.

If you can—and in a carefully discerned departure you usually have time to do this before you go— ask yourself what you’re called to next.

In my current situation, in addition to a sense that the current season was drawing to a close, that a well-executed succession plan was important for all, there was also a budding sense that a new calling or assignment was being birthed: to help leaders thrive.

One of the reasons transitions are so painful (particularly as you get older as a leader) is because all your best days feel like they’re behind you.

Find some wise counsel around you who can help you discern what’s next before you leave what’s now.

Running toward your future is a much better move than running away from your past.

5. A Bad Season Is the Worst Time To Make A Big Decision

So just to frame this season in context, this really is a bad moment. And it’s impacting leaders deeply.

A recent Barna survey has led Barna President David Kinnaman to conclude that the mental health of pastors has reached crisis levels.

Just look at the chart below.

In 2016, only 14% of pastors said they’re mental and emotional health was average to poor.

By April 2020, that number more than doubled, growing to 35%.

In August 2020, fully 50% of pastors now say their mental and emotional health was average to poor.

I wonder where that number will move to as the crisis continues to spiral out of control.

I know when I’m in a discouraging, difficult and depressing season, one of the first things to go is my judgment.

When I’m not in a good place mentally or spiritually, I make emotional decisions and try to back fill them with logic. Or maybe I don’t even bother trying to be logical. I just make (bad) decisions.

As a result, I’ve realized that a bad season is the worst time to make a big decision. This is true for anything from quitting your job, to leaving your spouse to (honestly) even making big financial decisions.

Never quit on a bad day.

Sure, maybe you are called to move on.

Give the decision room to breathe. Pray. Bring in wise counsel. Consult. Hire a coach. Read. Reflect. Think.

Get healthy, and if you can’t do that right now (because it will be a long journey), at least get healthy people around you to make some recommendations.

If you can, make your decision to finish up on a good day.

If it’s a bad day, stick it out or let other people make the decision with your, or if it’s really bad, have them make the decision for you.

This isn’t a good season for most leaders.

Article written by: CAREY NIEUWHOF

Article taken from here.

7 Good Questions Before You Hire For An Open Position

7 Good Questions Before You Hire For An Open Position

7 Good Questions Before You Hire For An Open Position

This has been a crazy year, especially when it comes to leading and managing staff changes.

Very few churches have a staff that looks the same today as it did early in March of 2020. How are you feeling about your team?

Remember, every time you change just one staff member, you change your culture—unless you place intentional effort into cultivating and sustaining the culture you want.

Redesigning staff structure when you weren’t planning on it has brought both positive and negative outcomes in many churches.

Re-deployment of staff members from one position to another is very common among churches right now, and re-deployment of a staff member has, in many cases, turned out to be a surprisingly positive and productive change.

However, a more difficult but understandable reality is also in play; there have been lay-offs, voluntary resignations, and some salary reductions.

Few churches are hiring in general, except for positions they absolutely must-have.

The good that comes from the hiring pressures and complexities in 2020 is that church leaders have learned better how to play chess, not checkers, when it comes to staffing strategy. Think ahead as much as possible.

Decision-making is not always easy, but it has become more focused.

If there is any “sloppy” in your hiring process, it has to be eliminated. There is no room for optional, fast, or casual hires.

Staffing has become more intentional, and hiring for your team must be:

  • Mission-critical
  • Growth directed
  • Clearly focused
  • Quickly productive
  • Option oriented

Here are 7 questions that will help you think through your hiring decisions before you actually start a search and interview process.

7 Helpful Questions before you begin the hiring process.

1) Are you hiring for productivity or relief?

Digging deeper in staffing conversations with churches, I’ve learned that while we all know that the best reason for hiring a new staff member is increased productivity, it is often for some relief.

That’s understandable.

Some of your staff carry very heavy loads, and maybe you do too.

But hiring someone primarily because you or someone on your team is exhausted or needs help is not the right place to start.

It’s better to start solving that problem by reducing their list of responsibilities first. Get tough about what doesn’t need to be done.

The staff member is more important than their tasks. You can always temporarily shorten their list some if they are overloaded.

Let me be really blunt. The parts of an existing job that are often assigned to the new position are the less productive and sometimes more annoying roles. Resist that at all costs. Tighten up the position responsibilities!

When you hire, make it your goal to achieve greater productivity as well as the health of your staff.

2) Do you need vision and creativity or implementation and progress?

Most staff members need to possess some skill in both vision and creativity as well as implementation and making measurable progress.

However, a team of mostly visionaries and ideators and too few who can or will execute is not a good mix for consistent progress.

Knowing what your team needs most, ideas, or execution will help shape the design of the role you want to hire. You can ask this question about nearly any position on your team.

3) Do you need to drive growth or manage critical systems and processes?

Driving toward the vision to realize healthy growth and managing key systems and processes are both vital and necessary, but they are rarely a hiring priority at the same time.

It’s smart to put vision and progress first when hiring. However, if you do that long enough without hiring support staff to keep that growth from creating chaos (reactionary, last-minute leadership, etc.,) you can end up losing the ground you have gained.

In short, people will begin to leave your church because you can’t keep up with the basics of everyday growth and ministry.

Which do you need most right now?

4) Are you hiring for the present or banking on the future?

Typically, you bank on your vision (the future) when you hire, but COVID has made that difficult because you can’t see around the corner as well as you once could.

Therefore, strategy is shorter in duration, and that often affects how you hire.

You probably have some staff needs right now, but unsure if you will need the same roles six to nine months from now.

This is a good example of chess, not checkers.

Obviously, you don’t want to hire someone and have to let them go in six months.

Consider one or two other key roles and responsibilities that are needed and similar in nature to the position you are working on. Then ask yourself if the potential staff member may be able to pivot to a new role if needed.

Yes, this practice is layered, nuanced, and subjective. But you are wise to at least consider this question each time you hire in this crazy season.

Think versatility, adaptability, and resilience with new staff.

5) What level of risk are you willing to take?

No matter how much homework you do when you hire a new staff member, there is always an unknown element. There is always a measure of risk. It’s especially important these days to close that risk gap as much as you can.

COVID has changed the level of margin most church leaders are willing to “gamble” on a risk. I’m not suggesting that before COVID, you could be carefree or even careless in your hiring approach, but you likely had a little more margin for a mistake.

If you can only hire one or two people, for example, maybe for an extended period of time, you have to get it right.

Here’s the point. Make your decision in full recognition of how much risk you can accept.

  • Know what you need.
  • Know what you want.
  • Don’t lower your standards just to complete the hire.

It’s far better to endure the pressure of an unfilled staff position than to hire the wrong person.

6) Is this position the highest priority to hire right now?

Having a solid grasp on which staffing positions are the highest priorities is an issue of your hiring process, team alignment, and decision-making.

Your strategy should be set and agreed upon, but the interpretation of how to accomplish it can be subjective.

If you gather your exec staff at the table, or senior pastor and the board, it is likely that no one in the room would give the exact same list of hiring priorities. That’s not a sign of misalignment; in fact, that’s a healthy difference of opinion that helps make better decisions.

Misalignment on your team occurs when you leave the table,  and you were not able or willing to agree on your hiring priorities.

One of the most healthy and productive conversations you can have amongst your leadership team about staffing starts with a question like this; “If you need three staff members and you can only afford one, how do you make that decision?”

7) What would happen if you did not rehire the position?

If you have a position open and unfilled for six to nine months or longer, there’s a good possibility you don’t need that position.

That’s not always the case, but it’s worth asking the hard question.

COVID makes it more difficult to answer, but that question is more objective than subjective.

Here are a few more questions to help you think it through.

  • What measurable progress will be lost if you don’t rehire that position?
  • Will you be placing undue pressure on other staff members? (Keep in mind your option to thin out your ministry expectations.)
  • What can your budget sustain?
  • Could a volunteer do the work? Part of the work? Temporarily?

Article written by: Dan Reiland – Dr. Dan Reiland serves as Executive Pastor at 12Stone Church in Lawrenceville, Georgia. He previously partnered with John Maxwell for 20 years, first as Executive Pastor at Skyline Wesleyan Church in San Diego, then as Vice President of Leadership and Church Development at INJOY. He and Dr. Maxwell still enjoy partnering on a number of church related projects together.

Article taken from here.

Find more ministry blogs at MinistryJobs.com/blog

Building a Healthy Staff Culture

What's the Word Wednesday

Building a Healthy Staff Culture

If you are a leader, one of the things you must always think about is culture. The culture of your church or business. The culture of your staff and team.

The problem with culture, though, is that it isn’t always written on the wall. As one author put it, What You Do Is Who You Are. Which means you are continually building culture.

You are creating it through your interactions, personally and in meetings. You are creating it through how you spend your money and time. You are creating it through how people work in meetings. You are building it through how you handle your own emotions. You are creating it through whether or not you burn out or if you are healthy.

While culture is a squishy thing, a leader must pay attention to it because if you aren’t, your culture will get away from you.

The reason is: Whatever culture you create at work, people will emulate.

If you look around and see dishonest, burned out, or backstabbing people. That’s the leadership and culture.

If they’re honest, balanced, and humble, that’s leadership and culture.

If the marriages in your church are falling apart, that’s leadership and culture.

Those closest to the leader emulate the leader and his or her life and pass those things on. Yes, people make decisions along the way, and a leader isn’t responsible for everyone’s personal choices, but the reality is that a leader shows what makes someone successful or what is allowed.

For example, very quickly in a new job, you learn what it means to be successful somewhere. Can you be late on things? Who holds the real power at a church (hint: it isn’t always the person with the title)? How do things get done?

All of this goes back to culture.

That’s why Henry Cloud famously said: “A leader gets what he or she created or allows.”

Culture will end up determining if you are successful in reaching your goals. But it will also determine where you end up as a leader or a church.

And this is the most important reason to pay attention to it. Because you may not like where you end up, you may not like the church you become.

Written by Josh Reich

Article taken from here.

Find more ministry blogs at MinistryJobs.com/blog

To Hire or Not to Hire

To Hire or Not to Hire

To Hire or Not to Hire

The unique challenges of the Covid pandemic highlighted how churches must reallocate personnel dollars in the future. As more ministry shifts online, churches will need to beef-up their digital ministry staffing. Additionally, volunteers saw unprecedented expectations placed on their shoulders during the pandemic.

These changes have left many church leaders wondering–what should be a paid position and what should be a volunteer position?

Truthfully, this is a timeless question that churches should have been thinking about more critically for years. Large churches or churches with significant incomes tend to hire out every position they can. It is not uncommon for churches of 1000 in average weekly attendance to pay all of their musicians! By contrast, smaller churches or churches with fewer means tend to wait as long as possible to hire a position, often burning out the same handful of volunteers who do most of the work.

The right balance is in-between these extremes. Rather than make a comprehensive list of which positions should be paid and which should be a volunteer (which could vary from church to church), use these three guiding principles to help you know when to hire.

Principle 1: The position involves shaping strategy.

Our Leadership Pipeline Design process emphasizes that volunteers are capable of higher-level leadership skills than most churches assume. Volunteers can coach, manage the schedules for other volunteers, and delegate tasks to frontline volunteers. We call these “L3 Leaders” or volunteers at the Coach Level.

Churches often think that staff should do 100% of the coaching, scheduling, and delegating. But even in a midsize church, this expectation is unrealistic. Consider that a Children’s Pastor in a mid-size church could have hundreds of volunteers. How is he or she supposed to manage the schedules or coach that many people? Hint: it’s not possible.

Any paid staff person should be at a position that requires strategy development, not just management and task execution. A focus on strategy does not mean that staff sit in their offices all day and don’t manage people (they do!) or don’t execute tasks (they do, but should focus on fewer tasks). However, healthy churches understand that ministry staff positions primarily exist to bring strategic thinking and leadership leverage to a specific ministry.

If a position does not require translating church-wide vision into ministry-specific strategy, only volunteer management or task execution, it is not worth hiring out. Volunteers can do it.

As a church gets larger and complexity increases, the need for strategy development increases. It’s reasonable for a large church to have staff in production or marketing. But the same principle applies–don’t hire people to run the camera or press next on ProPresenter. Hire the people who are shaping your digital production strategy, and leverage volunteers for the rest.

Principle 2: The position requires safeguarding theology.

This principle can be tricky. Even your children’s ministry volunteers that work in the preschool classroom, to some extent, are safeguarding theology. Indeed, small group leaders and Sunday school teachers are defending theology.

However, this principle’s intention is not just teaching proper theology, but making high-level theological decisions. For example, children’s ministry volunteers should not choose the curriculum–someone at the staff level should. Small group leaders should not select their content–a staff leader should.

Many churches are failing in this area. Too many churches are giving up this responsibility! They let small group leaders hop on to Right Now Media and select their group’s content without much oversight. This abdication is dangerous.

I worked with a church that touted its commitment to Biblical teaching as one of its highest values. When I visited a Sunday School class, I heard one of the worst theological breakdowns of Genesis 3. Afterward, I confronted the elders who confirmed that Sunday School teachers were “on their own” for writing content.

When ministry staff are too busy executing tasks, they abdicate their responsibility to safeguard the theology taught by the volunteers beneath them. If a role requires ensuring that theology taught downline is proper and Biblical, it is likely to require a staff member.

Principle 3: The position manages significant financial obligations.

It is common for lay leaders to spend budgetary funds. A youth volunteer might need to pick up snacks, or a production volunteer might have to grab a cable from an electronics store. But if a non-board level position requires the development of a budget and its day-to-day management, this is likely a staff position.

Volunteers should not manage budgets because it is impossible to hold them accountable the same way a staff member can. If a volunteer mismanages a budget, you can remove them from the position, but they might remain at the church. They might complain to others or mobilize the congregation to antagonize leadership. Staff members have a higher degree of oversight through meetings, and more importantly, you can fire staff for gross misconduct.

Major ministry budgets should be managed by staff, not volunteers.

What about administrative positions?

As a general rule, I consider administrative positions as extensions of ministry staff. A senior pastor’s assistant is an extension of the senior pastor’s role, in that he or she handles tasks that otherwise only the pastor could do. For example, an assistant may manage the pastor’s schedule, filter email, and perform initial sermon research.

A ministry assistant in a smaller church, likewise, may take on some tasks that are difficult to outsource or delegate to a volunteer. For example, he or she may take deposits to the bank or post office. These tasks might require a higher degree of accountability than could be expected of a volunteer, but would overburden ministry staff.

Bonus note: what to do about the gray.

Your church may have needs that don’t fit into clean categories, or your church might lack volunteers with the necessary skills to execute needed tasks.

For example, many churches realized through the pandemic that they simply didn’t have the social media or marketing tools necessary to be successful. The knee-jerk reaction is to hire a staff person in instances where there is a gap between the skills you have on-staff or in volunteers and what you need.

However, two options may be better suited to meet the need:

1. Outsource the job.

When it comes to certain ministry needs, if your church doesn’t have the existing skillset available through volunteers, consider outsourcing. Companies like Church Media Squad, among others, handle graphic design needs. You can outsource custom video editing. If your church needs help improving record-keeping, look into virtual assistant services from a group like Belay that has a track record of working with churches successfully.

Outsourcing is often cheaper than hiring on-site, gives you the flexibility to terminate a contract without the relational headache, eliminates overhead in taxes and benefits, and usually gives you access to talent above what you find on your own. Bottom line: if you cannot delegate critical, specialized tasks to qualified volunteers, consider outsourcing before hiring staff.

2. Put it off for now.

Ministry envy is real. It’s easy to look at the “cool” church down the street or online and think that you must be able to execute at the same level. You don’t. Do a few things and do them with excellence. Don’t worry about being on Facebook, YouTube, Twitter, Instagram, and whatever social media company launches before I finish typing this sentence.

Pick one and do it well. Leverage the assets you do have to execute well on a few things. As you get more qualified volunteers or financial resources to outsource, take your ministry to the next level. But don’t feel pressured to take on more than you can do well at this moment. There is no shame in that!

To hire or not to hire?

Leverage the three principles outlined above to determine if a role is better suited for a volunteer or a staff position. Your church has limited resources, and every staff member you hire adds an exponential layer of complexity to your organization.

Be sure to pause, consider, and plan before taking action in growing your staff.

Written By Scott Ball, Vice President and a Lead Guide with The Malphurs Group.
Article taken from here.

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The Fallacy of the “3 Cs” in Hiring

The Right Way to Leave Your Church

The Fallacy of the “3 Cs” in Hiring

There’s been a lot written about the “3 Cs” of effective hiring – character, competence, and chemistry. While these may be a good check-list, among other best practices for hiring, I believe one of these three can be misconstrued if we’re not keenly aware of the influences that affect its misinterpretation.

I couldn’t agree more about the priority of character in the hiring process. Whether it’s in a church setting or in a secular setting, character counts. No doubt, this is perhaps the most important trait to assess when considering a candidate for a position.

I also agree with the importance of competence. A candidate must have the necessary education, experience, and skills to do the job well. Many believe this is the least important of the three, because many jobs include skills that can be learned over time. Some, of course, require a deeper level of experience and skill and must be present from the beginning.

It’s “chemistry” that I believe is often misinterpreted in some ways. The misinterpretation comes when “chemistry” is used to define how well the pastor or the top leader “likes” the person. Do they have similar personalities, similar interests, or similar hobbies? I’ll call this “personal chemistry.” I think this is where the chemistry criteria gets off track.

Sure, it might be nice if two leaders who work closely together can play golf or go fishing together on the weekends. Or they can start every meeting talking about all the games from the previous weekend and the performance of their favorite athlete. But I don’t believe this kind of “personal chemistry” is necessary for there to be a good organizational fit.

Many organizations do reflect the personality of its leader, but most organizations should be more sophisticated than to only hire staff with whom the top leader can have a “high five” relationship. When a leader expects his closest team members to be too much like him, he misses an opportunity for some valuable diversity.

Perhaps the best interpretation of “chemistry” in the 3 Cs is when it’s used to refer to the candidate’s fit in the culture of the organization. Let’s call this “cultural chemistry.” Cultural factors in an organization can allow some leaders to flourish and others, while equally competent, to struggle or fail.  We should closely assess whether the candidate’s values and their vision line up with those of the organization. We should determine if there are factors that would create a significant misalignment with the team with whom they’ll be working. We should focus more on the candidate’s identity and less on his persona.

God made us with different personalities, passions, and interests for a reason. That kind of diversity can be very healthy for an organization. Those diffeences can complement the others on the leadership team. They can provide balance, perspective, and accountability. If we’re all essentially the same, even in our “personal chemistry,” some valuable contribution to the team is likely to be missing.

Written By Steve Smith, Executive Pastor at First Baptist Church of Broken Arrow, Oklahoma.
Article taken from here.

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How to Have Better Conversations With Your Senior Leader

Pastor Appreciation Ideas: Over 50 Creative Ways to Bless Your Pastor and Staff

How to Have Better Conversations With Your Senior Leader

If you are a children’s pastor, youth director, or next-gen leader, chances are you have asked yourself some version of the following questions.

How do I help my senior leader understand my vision?

Is there a way to get my senior leader to agree with me on this decision?

How do I get my senior leader to see things my way?

Part of leading a next-gen ministry is leading up to your senior leadership, so how do you have better conversations with your senior leader?

1) Think about the bigger picture.

Just like there are elements or dynamics of your job that your senior leadership may not fully understand, there are also elements of your pastor’s job that you may not be aware of or fully understand. It’s easy to look at your pastor and wonder why they made a particular decision. But other dynamics may be playing into that decision. Your senior pastor may be managing board dynamics, staffing issues, or budget restrictions. By understanding that they have to see the whole picture while you carry your ministry’s vision, you’ll be able to build a bridge and have better conversations.

Before presenting a new idea, try asking yourself these questions.

If I were in their shoes and position, what dynamics would play into this decision?

What information will they need to know?

How does this decision affect the church as a whole?

You will earn points with your leader when you show that you have thought beyond just your ministry.

 

2) Ask, don’t demand.

When you present new ideas, try posing them as questions. Use phrases like, “Would it be possible to” or “Would you be open to.” By asking questions instead of making demands, you start the conversation with less tension and leave more room to discuss the idea.

 

3) Try it as an experiment.

If you are making a significant change, ask for a trial period. Offer to try it for a few months and then re-evaluate if it doesn’t work. Not only does this demonstrate flexibility, but it also makes the decision less overwhelming.

 

4) Give your leader time.

Remember, there may be other dynamics that affect this decision. Your pastor may even have to run the decision by a board, elders, or other staff. By giving them time to think about it, they can make better decisions and will most likely feel more positive about the conversation in general.

Written By Carey Nieuwhof
Article taken from here.

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What to Look for in a New Worship Pastor Job

It’s Too Loud

Looking for a new worship pastor position at a new church? Things to consider:

 

In early 2014, I was working at a university and received an invitation to bring a team of students to a church in Colorado Springs. The trip went well. Eventually it led to my wife and I flying out to this church once a month. Every trip we would do training and lead worship on Sunday morning; which ended up lasting fifteen months. About halfway through our “consultation” period we began to sense that this church could very well be our next home. Sure enough, in the spring of 2015 we committed and moved that fall.

We had an ideal situation for choosing a next ministry destination:

(1) plenty of hours spent on the ground, (2) over a long period of time, (3) while engaging with congregants, staff, and the senior pastor. All of these factors gave us the opportunity to discern what it might be like to live, work, and worship with those people.

I doubt the slow process like this will ever happen like that again, but I’m grateful for it. Typically the timeline of “trying out” is more compressed, which on top of asking all the questions, makes it difficult to really grasp the culture of a church.

There are three groups of people that are important to engage with while auditioning for a new position.

Here I’ll share who they are and what kinds of things I’d be asking and listening for in times of engagement.

Senior Pastor / Senior Leadership

In most Evangelical or charismatic churches, the senior pastor is the key culture setter and decision maker. The first two questions I’d ask is: Who will your direct report be? And how directly involved will the senior pastor be in your department?

Obviously, the senior leader casts the overall vision, but some senior pastors have very generic, basic wishes for their worship leader and will be relatively uninvolved in your day-to-day operations. Other times – particularly if they are former worship leaders themselves – the senior leader will have very specific expectations down to weekly involvement in song selection, style, service flow, etc.

Some people work better with regular specific guidance. Others will hate it and feel micromanaged.

Let me be clear: neither is inherently right or wrong. You just don’t want to be three months in and have this blindside you.

Don’t be afraid to ask specific questions.

Are you being hired to be the primary worship or to build a great team?

Or are you being hired to be a production manager / creative director with the title “Worship Pastor”?

If it seems like there’s a lack of clarity from the senior leader, get more specific.

Ask things like:

How do you envision me spending the bulk of my time? Songwriting? Meeting with team members and volunteers? Praying and preparing solely for Sunday morning?

You need to know the Senior Pastor’s vision for you position & all of these questions will help you draw it out – despite what’s posted in the job description.

At the end of the day, if you feel like you can align with the vision that the senior leader casts for your position there’s a good chance you’ll be able to thrive. If not, you probably shouldn’t take the position even if the benefit package is fantastic.

Current Staff Members (Colleagues)

One of the greatest things the pastor did when we were auditioning was setting up time with other staff members, where he wasn’t there, with explicit permission to ask them anything we wanted. It revealed his security as a leader to trust employees to talk about the strengths and weaknesses of the organization and not feel threatened by it. If you request this and it’s either denied or evaded then that might be a sign that the culture isn’t open and honest.

If you are able to get time with future colleagues, ask them what it’s really like to work there.

Is it common for things to change at the last minute with no rhyme or reason given?

Difficult to get vacations approved or what typically happens when personal requests are made?

Flexibility with office hours or is it more of a “clock in, clock out” environment?

When you’re asking these questions, do you sense fear or dishonestly in their answers?

Candidly, do they seem scared for their jobs? Or do they seem to have healthy relationships with their direct reports?

Lastly, inquire about the workplace expectations.

Does every little thing require approval?

Is there space to have open conversations and share disagreements with superiors?

This group can be the most tricky to get direct answers from, but if you ask good questions and pay attention you can learn a lot about how the organization really works.

The Volunteers in Your Area

Volunteers are choosing to attend and serve in this ministry; which is where you should expect to learn the best things about the church. They have nothing to lose! Weaknesses in the ministry are easiest to find out about from volunteers.

With volunteers I would ask questions like:

What drew you to this church and what has kept you here (you’d be surprised how often they’re not the same)?

Which areas of the church have you participated in and which areas seem to be the most healthy and life-giving?

Then I would ask them pointed questions about the worship ministry.

Do you feel like your voice is honored when you share thoughts, opinions, or suggestions?

How have you been treated when you’ve needed to take time off or request off for sickness?

Try and get a sense of any unspoken frustrations. Maybe there aren’t any – fantastic! That also speaks to the culture.

The most crucial thing to remember…

There are no perfect churches and we all know that. But there are churches who are honest with their imperfections and are pursuing Christlikeness together – then there are others who aren’t.

Ultimately, you want to be where God wants you to be. But, unless you sense a strong call from God, you don’t want to be in an unhealthy, stifling environment where fear and control pervade the culture. Engaging with these three groups of people can help you discern if this is that kind of place or not.

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Written By Jonathan Swindal
Article taken from https://worshiponline.com/what-to-look-for-in-a-new-worship-pastor-job/
For more info and resources about worship ministry > https://worshiponline.com/

Cost of Living Differences Matter in Salary Negotiations!

3 Thoughts on What Christian Leadership Should Look Like

Cost of Living Differences Matter in Salary Negotiations!

If you find yourself looking for a new position in a higher or lower cost of living location, you want to make sure you come with the right tools when it comes to salary negotiations. Now more than ever, candidates hold what seems to be the majority of the cards during these negotiations, but you still need facts to back you up! As a Co-Founder of Froot Group Staffing, a church staffing company, I have been involved in many salary negotiations and I want to share with you a few things that may help you if you find yourself in this situation in the near future.

  1. Know Your Worth

This is the first measure you need to identify before factoring in the cost of living differences. In my opinion, your worth is not based on how much debt you have, whether or not your spouse works, or how many kids you have. Your worth is based solely on what YOU can bring to the table. Sure those other factors may cause you to make different decisions when it comes to finding the right job, but having more responsibility on your plate means you need to bring more to the table if you want to be worth more to an organization that is willing to hire you.

Education, years of experience, the quality of experience you have had in the past, staff you have overseen, ability to relate and connect with people, and other competencies are all factors that organizations will look at when factoring your worth. Knowing the results of some of these factors will help you (and the organization) determine what you are worth paying.

  1. Moving Up

I always receive questions from candidates I speak to about whether it is alright to move up in salary when transitioning from one place to the next. We always need to check our heart on this before diving into justifying it to ourselves, but in short I believe the answer is yes. Many organizations are not actively keeping up with inflation year to year in giving their employees raises, so use this transition as an opportunity to correct your worth with how inflation has grown.

Our number one ministry we are called to take care of is our families, so as long as our increase is in line with what we believe our worth is and how inflation has affected that worth, then I believe our hearts are in the right place when asking for this increase. Remember, 1 Timothy 6:10 says “For the LOVE of money is a root of all kinds of evil…”, not money in itself.

  1. Cost of Living Differences

Finally, this is the final factor in determining what salary number to present to the organization you are applying for. There are typically two different scenarios you will find yourself in. One, you are moving from a higher cost of living area to a lower cost of living area, or vice versa. Both can be difficult pills to swallow!

Housing costs are the largest factor in the cost differences, which often is driven by…you guessed it…location location location! If you are moving from Elkhart, IN to Miami, FL where the cost of living difference is around 53%, you can’t always expect a 53% increase in salary, because part of what you are “paying for” is the benefit of the location. Now you might look at that difference and say a 30% increase in salary is more reasonable, but maybe you’d need to find a house 20 minutes from your organization instead of 5 to expand your housing search.

I believe that the hardest move to make is from a higher cost of living area to a lower area. Making $80k in a city like Houston and a similar position in Canton, OH is going to equate to around $62k for a lateral move. However the same $400k house in Houston may translate to $250k in Canton, which is a HUGE difference and may actually give you more room in your budget after paying your mortgage. These are all factors to consider!

  1. Calculating Tools

The best tools I use to come up with some of these calculations are very simple to use. The first place I like to go to is bestplaces.net to give me a general idea of the cost of living differences. The site allows you to put in your current city, future city, and current salary to give you a rough estimate of what your current salary should laterally translate to in your future city.

Zillow is the next place I go to. I always try to cross reference what bestplaces.net is telling me the median home cost is with the actual types of homes I would consider purchasing through Zillow. Make sure those numbers align and adjust your cost of living differences as needed, though make sure your calculations are all lateral! Again, you’re not worth more because you want a larger house!

ChurchSalary.com is the final resource I typically use. This is one of the most robust tools because it calculates many factors, including the church specific position you are applying for. It does require a subscription, but many churches subscribe to this resource as well as search firms. If you become a Froot Group candidate, I would be more than happy to run a free report through ChurchSalary.com for you!

Written by: Alex Purtell

Alex is a co-founder of Froot Group, a church staffing company, and a worship pastor at Lifepoint Church in Lewis Center, OH.

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