This is a guest blog post by Ted Miller of Guardian Wealth Management. Ted was a pastor for 25 years and now operates a 403(b)(9) retirement plan for churches.
Salary discussions can be sensitive, particularly for pastors who must balance financial needs with spiritual and communal responsibilities. Engaging in these conversations with a church board requires a thoughtful and strategic approach to ensure that both parties feel heard and respected.
The very first concern is for a pastor to evaluate and address their own insecurities. Without pride it is good to recognize one’s strengths and without shame to clearly see one’s weaknesses. In this evaluation, I have found it to be very helpful to engage the help of a friend or trusted advisor. For many years I had another successful pastor that would come to my church and provide coaching for our staff and board. This friend would help all of us to dream bigger and would inevitably help the board to think about the need for a regular salary evaluation. In the spirit of confident humility, I offer these guidelines for an effective salary conversation.
1. Prepare Thoroughly
Before approaching the board, gather all necessary information to support your case. This includes:
- Market Research: Understand the standard salary range for pastors in similar-sized churches or geographical areas. Resources like the National Association of Church Business Administration (NACBA) or similar organizations can provide valuable benchmarks.
- Church Finances: Review the church’s financial status, including income, expenditures, and budget forecasts. Be prepared to discuss how your salary fits within the overall financial health of the church.
- Personal Contributions: Reflect on your accomplishments and contributions. Document specific achievements, such as growth in membership, successful programs, or community outreach initiatives, to illustrate the impact of your work.
2. Choose the Right Time
Timing is crucial in salary discussions. Ideally, bring up the topic during the board’s budget planning sessions or during annual review periods. Avoid times of financial difficulty or when the board is focused on urgent issues.
3. Frame the Conversation Positively
Approach the discussion with a positive and collaborative mindset. Instead of framing it as a demand, present it as a mutual benefit. For example:
- Express Appreciation: Start by acknowledging the board’s support and the church’s mission. Highlight your commitment to the church and its vision.
- Share Your Perspective: Explain how your role has evolved and how it aligns with the church’s goals. Emphasize your dedication to the church’s growth and community impact.
4. Present a Well-Reasoned Case
When discussing salary, be clear and specific:
- Justify Your Request: Use the information you’ve gathered to explain why an adjustment is warranted. Present comparisons with similar positions and demonstrate how your salary aligns with your responsibilities and contributions.
- Be Transparent: Discuss the current financial situation openly. If the church is facing budget constraints, suggest a phased approach or alternative compensation options, such as additional benefits or professional development opportunities.
5. Listen and Engage
Engage in a two-way dialogue:
- Seek Feedback: Invite board members to share their perspectives and concerns. Understanding their point of view can help you address any objections and find common ground.
- Be Flexible: Be prepared to negotiate and consider alternative solutions. If the board cannot meet your salary request immediately, discuss potential future adjustments or other forms of compensation.
6. Follow Up
After the discussion, summarize the key points and any agreements reached in writing. This ensures clarity and provides a reference for future conversations. If a decision is deferred, request a timeline for when it will be revisited.
7. Maintain Professionalism
Regardless of the outcome, maintain professionalism and gratitude. Salary discussions can be challenging, but handling them with respect and understanding strengthens your relationship with the board and reinforces your commitment to the church’s mission.
Conclusion
Discussing salary with a church board requires preparation, clear communication, and empathy. By presenting a well-reasoned case, choosing the right time, and engaging in constructive dialogue, pastors can navigate these discussions effectively. The goal is to reach a mutually agreeable solution that supports both the pastor’s needs and the church’s well-being, fostering a positive and productive working relationship.
If I can be of service to you and/or your board, please feel free to connect at Ted.miller at guardianwm.com, or (214) 501-1400 (Office).
