If good stewardship is your church’s goal, you simply cannot afford to overlook compensation.
Why? Large churches in America tend to invest about half of their overall budget on compensation, according to the latest research by our friend, Dr. Warren Bird at Leadership Network.
This was just one of my top takeaways after sitting down with Warren for a recent podcast interview on large church compensation trends. In addition to the compensation/budget ratio, here were 6 other interesting insights:
- Church budget is the most influential factor in setting pastors’ salaries.
- Outsourcing is on the rise (outsourcing is included in “compensation,” which equals about half of church budgets).
- The second highest ranking church staff member tends to be compensated around 70% of the lead/senior pastor.
- Compensation is rising for staff serving in communications and student ministries.
- More churches are incorporating bonuses as part of their overall compensation strategy.
- Few churches disclose detailed compensation information beyond church boards or committees… making integrity in the compensation-setting process even more key (see ECFA Standard 6).
Check out Leadnet.org/salary for more great tools and free downloads on large church compensation trends.