Designing Compensation Programs for Non profits

Rewards for Employees and Company Values

Strategic planning in nonprofit organizations is helpful in ensuring that the management can align the employees’ and agency’s goals and objectives to be achieved. This approach further influences the way a reward system is designed in meeting the workforce needs. The systematic and continuous nature of strategic plans implies that the organizations will be in a position to adapt to their future endeavors. The process helps organizations anticipate and respond efficiently to dramatic changes that happen in the environment. Therefore, by implementing a strategic plan in nonprofit organizations, they are reflecting on their reality, which ultimately affects the design of their reward systems. All this is possible if the strategic plan is aligned with the pathway to success model that looks at rewarding employees in the organization (Eldenburg, Gaertner & Goodman, 2015). It is also worth noting that reward systems need to be designed alongside organizational strategies because they should align with the organization’s objective and strategy. By doing this, the strategy will be helping the nonprofit organization to create its work culture.

The mission and values of the nonprofit organization directly connected to their compensation system because it is necessary to identify the goals and objectives of the company when developing the compensation program. Therefore, the mission and values of the organization should be scrutinized as a way of understanding and balancing employees’ needs and those of the organization. This is reflected in the reward systems adopted. By having such elements in mind, the organization will build a strong foundation for its employees and the organization (Goleman, Boyatzis, & McKee, 2001). The value of the organization is considered when formulating compensation systems because leaders will look at the value that the employee is bringing to the company and what they deserved to be paid for their efforts. In contrast, the mission will guide the human resource personnel to identify the positions of the employees in question for the compensation system that needs to be developed. Therefore, executive directors and managers of nonprofit organizations will examine their compensation system and practice to help them align with their organizational goals, mission, and values. In turn, this will influence their decisions relating to base pay, non-monetary recognition, equity (internal and external) and the rewards plus adjustments to be made on pay (Word & Sowa, 2017).