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April 7, 2010

Learning from Lean Staffs during Lean Times

What churches might learn from those that spend less on staffing than the national averages.

 by Matt Branaugh


With many congregations facing tighter budgets as they weather the worst economic recession in decades, a recent survey of U.S. church leaders shows that a small percentage of churches are able to continue doing ministry while keeping staffing costs—the single-biggest expense for nearly every church—well below national averages.

The “Lean Staffing” survey was conducted in January by Christianity Today International's Your Church magazine and Leadership journal, and Leadership Network. It was taken by 735 leaders of Protestant and evangelical churches.

The results show that 1 in 7 spends less than 35 percent of its annual budget on staffing costs. Historically, churches in recent years spend, on average, about 45 percent of their total budgets on staffing costs—and sometimes more.

The “Lean Staffing” study separated 539 respondents to generate the "lean staffing" comparison: 15 percent of that group spends less than 35 percent on staff, while the rest spend between 35 percent and 65 percent. The study used 35 percent or less as a benchmark since it represents a sizable decrease from national averages and it helps with statistical comparisons, said Warren Bird, director of research at Leadership Network.

Besides identifying churches that spend less on staffing, the study also found “lean-staffed” churches typically spend more on ministry efforts outside of their walls, Bird said.

“There are churches that seem to be healthy and outreach-minded that do, indeed, have a lower percentage of their budget going to staffing costs. It can be done,” Bird said. “That was very affirming.”

You can read the full article, which details the survey’s key findings, and you can read the full, 46-page report for free (note: free registration is required).

Also, you can listen to a 12-minute podcast between Warren Bird and me (note: free registration is required to download the podcast), and read Warren's blog post about the research (and the next steps to further research the topic).

Matt Branaugh is director of editorial for Christianity Today International's church management publications and resources. His current duties include editing Your Church magazine and TheYourChurchBlog.com, as well as leading a fantastic editorial team.

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Posted by Matt Branaugh on April 7, 2010 12:32 PM

Related Tags: Budget, budgets, church budgets, compensation, employment, finance, giving, hiring, office, outreach, planning, salaries, staff, stewardship, Teamwork, volunteers

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