Our compensation policy and salary administration practices apply to all SVEF regular and part-time staff members. It does not apply to fee for service, temporary employees or independent contractors.
The goals of SVEF’s compensation policy are that it is:
B. Fair and equitable
C. Provides competitive total compensation
SVEF’s compensation practices aspire to motivate improved performance, attract and retain top performers, improve cost-effectiveness (by rewarding successful performance) and provide opportunities for internal collaboration through the definition of performance goals.
SVEF’s compensation practices aim to be: focused and appropriate for the agency, competitive with the external market, internally equitable, in full compliance with wage and hour laws, flexible and responsive to necessary changes, understandable to employees and efficient to administer.
All SVEF employees covered by this policy and practices should have access to their job description and comparative external market data. In addition, SVEF employees are entitled to know the comparative external market data on other positions when it relates to their immediate career path or to immediate promotional opportunities.
Our practices are SVEF confidential. Any external requests for this information should be directed to the CEO or COO.
SVEF reserves the right to change or alter this compensation administration policy and practice at any time.
B. SVEF’S COMPENSATION PHILOSOPHY
To the best of the agency’s ability, we will define a salary range for each job title based on available comparative market data in the non-profit sector. SVEF’s goal is to target base salary at the median of the external market. However, many factors will influence the ultimate result (such as, available funding, individual performance, SVEF’s performance, external economic factors, etc). To ensure appropriate oversight and alignment with the external market trends, the CEO and a subset of the Board will annually review the total compensation program at SVEF. To the extent possible, each job content will be benchmarked to appropriate market data every year. The result of this review in conjunction with the annual performance evaluation will inform any individual salary action. Any salary action will be influenced by the employee’s current base pay relative to the market, i.e. employee’s job performance, employee’s job experience relative to the position, SVEF’s performance and funding availability.
Recognizing that base pay is only one component of total compensation, SVEF strives for a comprehensive plan that provides competitive pay for all employees. Our program is designed to:
Attract and retain a highly qualified, motivated and dedicated group of individuals;
Promote external equity, enabling payment of competitive base salaries when compared to similarly situated organizations;
Performance driven – provide equitable salaries in recognition of job performance and job responsibility by aligning pay with performance expectations;
Promote internal equity, enabling payment of fair and equitable salaries within SVEF;
Promote teamwork and foster an environment of personal and professional growth for the entire workforce; and,
Consider the agency’s financial position and provide for the equitable distribution of pay throughout SVEF.
All SVEF employees shall be equitably compensated for assigned duties and responsibilities without regard to race, color, religion, gender, age, national origin, marital status, or sensory, physical or mental disability, veteran status, sexual orientation or any other basis of discrimination prohibited by local, state and federal law.
C. COMPENSATION PROGRAM SUMMARY
Total compensation has many elements. In addition to base pay, and if applicable, overtime pay, SVEF has many indirect pay elements in its total compensation package. Among the indirect pay elements are:
Health and welfare plans: health coverage, life insurance, long term disability insurance, flexible spending accounts, a savings plan.
Mandated benefits: short term disability, worker’s compensation insurance, unemployment insurance and FICA (social security).
Paid time off: holidays, sick time and vacation days or school breaks.
An employee’s base compensation is determined by various components: job skills, job-relevant experience, performance in the job, and the comparable worth of the position both within and outside SVEF.
Annual Performance Review
SVEF has an annual Performance Review process for performance evaluation, development discussions, and salary planning. It is a component that goes into your manager’s recommendation for any salary action.
The health and welfare of the SVEF’s employees are critical to our success. We offer eligible employees and their dependents the opportunity to participate in the agency’s medical programs. Eligible employees are also eligible to participate in Life, STD, and LTD insurance plans; flexible spending programs; and a 403(b) plan.
D. COMPARATIVE BENCHMARKING AND SALARY ADMINISTRATION PROCESS
Each year SVEF participates in a non-profit sector benchmarking salary survey which allows us to obtain external market data to compare jobs. The process is part science and part judgment. It is very difficult to match each of our jobs in the market at a hundred percent. The process of analyzing the external data is as follows:
We compare the essential major duties and responsibilities of each of our jobs to the market benchmark job with similar duties and responsibilities.
Once the match is determined, we align our job at the different market segments similar to us, provided for each job such as:
Field of service or service sector
Size of agency (number of employees)
Number of employees managed (for supervisor/manager jobs)
We then look at the median (50th percentile) base salary of the most appropriate market segment match for each of our jobs as our target base salary, however, we create a salary range that falls between the minimum and maximum range based on experience and capabilities for that position (typically, between the 25th and 75th percentile of the market, however, circumstances may dictate broadening the range).
This target base salary will be the reference point for the salary action decision if any. At the appropriate cycle during the year, your manager will make a recommendation based on your current base pay relative to the market, your job performance, SVEF’s performance, and funding availability.
The CEO and a subset of the Board will review and decide on the recommendations.
Any annual review salary action will be communicated to each employee in the month of January.
For more information regarding the information above, please contact the Finance Team at email@example.com or 408.790.9400, ext 2.