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February 24, 2011

Pay Raises for Pastors and Church Staff in 2011?

Increases may come at many American companies. Will churches follow?

by Matt Branaugh


payraisesforpastors.jpg

A recent Wall Street Journal headline immediately caught my eye: “Higher Pay Gains Seen for 2011.”

The article goes on to explain the very real chance American workers will receive bigger pay raises this year:

With corporate America sitting on large piles of cash and manufacturers seeing a surge in exports to fast-growing emerging markets, signs are mounting that some of the benefits will start trickling down to employees.
This could mean average wage gains of as much as 3% in 2011, compared with 1.7% in 2010—enough to boost consumer spending, which accounts for more than two-thirds of the economy, but not so much that it would stoke concerns of an inflationary spiral.

In addition, a recent issue of Kiplinger highlights the U.S. economy is on track for GDP growth of 3.5% this year, up from last year’s 2.9%.

While I doubt many churches are sitting on large cash reserves, these headlines make me wonder—will churches give pastors and staff members raises this year? A couple of weeks ago, my church approved 3% raises for the senior pastor and staff (we’re a congregation of about 120 people). Will yours?

It’s a serious question. If you chair a church board, it’s worth a long, hard look. After a multiyear recession, many churches implemented pay freezes to help weather budget challenges. A recent article on ChurchLawAndTax.com illustrates why now is the time to reevaluate:

Mercer, a global human resources consulting firm, surveyed more than 1,100 mid-sized and large employers. Nearly all of them plan to increase base pay salaries for workers in 2011, at an average of 2.9 percent. Only 2 percent of the employers surveyed plan freezes, compared to 13 percent who said the same in 2010 and 31 percent in 2009.

The reason, a Mercer executive said in a prepared statement, is that “employers realize that top-performing employees are loathe to going another year without an increase in pay.”

I realize church giving isn’t simply explained by direct cause-and-effect, in this case the cause being the general economy and the effect being giving. And I still remember what author and researcher Ed Stetzer told us back in early 2009: Giving at evangelical churches tends to be heavily influenced by unemployment rates, and even then, the effects don’t tend to show up until later. Right now, unemployment rates still remain in double-digit percentages for good portions of the country (although Kiplinger also says productivity rates are so tapped that many companies will begin hiring in earnest again soon).

And I recognize that the calling to ministry (at least for most) isn’t predicated on a desire to get rich.

But pouring hours of time in service to a local church needs to result in some tangible fruits—namely, providing for one’s family. With the costs of most goods, including food and gas, on the rise heading into the spring, it’s hard not to imagine high-performing church pastors and staff members (who have faithfully served despite little or no pay increases in recent years) wondering about opportunities elsewhere, especially if a pay freeze remains in effect at their current gig.

What is the salary outlook at your congregation? Did salaries freeze during the economic slump, and are there signs of a coming thaw? Did a freeze never come, leading to incremental annual increases? Or are raises unheard of, regardless of the economic climate?

While you’re thinking about this subject, let me invite you (shameless plug) to complete the National Church Compensation Survey. Your confidential answers will help us produce the 2012-2013 Compensation Handbook for Church Staff, a valuable resource for churches, as well as those employed by churches, who rely on its information about pay and benefits. In honor of your time, you’ll receive a $15 coupon for church management resources at YourChurchResources.com.

Matt Branaugh is director of editorial for Christianity Today International’s Church Management Team, which means he leads a great group of editors and designers who create print and electronic resources that help churches stay safe, legal, and financially sound, and he edits the Church Law & Tax Report and Church Finance Today newsletters.

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Posted by Matt Branaugh on February 24, 2011 8:00 AM

Related Tags: benefits, board, compensation, finances, Law, money, pastors, planning, salaries, staff, tax

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