Take a Cue From Loreal & Negotiate a Higher Nonprofit Salary (Because You’re Worth It)

March 5, 2008 | Career Advice

This week’s post about pissed off underpaid nonprofit workers struck quite a chord with readers. I received several emails and a number of comments on this topic, so I wanted to present some practical advice here to keep the conversation going. Now I know full well that my little blog is not going to change the flawed mindset of thousands of nonprofit boards and CEOs that staff should be paid better. And y’all know how I feel about excessive CEO salaries, so if I thought cursing somebody out would do the trick, I probably would have done it already. But what I want to focus on today is you, not the sector. We all know the nonprofit field has its strengths and weaknesses. And yes, it royally sucks that doing good for a living can actually get you jacked up financially in the long run. Why do you think I launched Thurman Consulting? I need extra dough as much as the next do gooder. But. We do need to stop acting as if our bosses are the ones holding us down. Like my grandma says, can’t nobody do anything to you unless you let them. So instead of griping about your low salary, try asking for a raise or negotiating better when you come into a position. And by all means, be prepared to walk away from an offer that doesn’t meet your financial needs. Especially if you feel like reader JRay:

I do not plan on becoming a millionaire working in this sector, but it is a slap in the face when an ED makes nearly five times your salary (sometimes even more than that)and you are barely keeping your head above water.

I think a KEY part of this problem is the impact that it has on retention and cultivation of talent. The message it sends to many employees is “you are not valuable.”

But how do you negotiate more money in a sector that’s always crying broke? Here I offer a few ideas, some have to do with flat out asking for a raise, some deal with simply making your work better match your compensation.

Remember that ‘nonprofit’ doesn’t mean you shouldn’t get paid.
Somehow the sector’s done a bang-up brainwashing job on making all employees believe that the budget just can’t possibly bear to pay you a penny more this year. If you feel funny talking about earning more money just because you’re here to “do good, not make a good living,” be aware that it’s the psychology of the sector that may be keeping you from speaking up, not any real taboo around asking for what you’re worth.

Be knowledgeable about what you’re worth.
How are you supposed to negotiate a higher salary when you don’t even know the market rate for your position? These nonprofit salary guides can be helpful in making the case to your boss for more moola. Note that for nonprofits under $2M in size, the market rate for most positions is more than $30k a year, so there’s no earthly reason for you to get stuck in that craziness. And don’t go applying for jobs with ‘assistant’ in the title if you can avoid it. Also don’t be shy to ask your friends who have similar positions (in other organizations) what they make. Knowledge is power.

Start from the top.
Ask for the salary you want when you come in, which should be a number higher than what you need to buy food and pay rent. I know people who have calculated their bare bones needs just to get by and told the hiring manager they could live off of $32,000 a year. I did it myself – my first full-time nonprofit job I made $27,000 and had to take out loans and hostess at a chain restaurant just to feed myself and go to a concert once in a blue moon. But I learned my lesson real quick. What did I think I was, a human Wal-Mart? You are not discount talent, so don’t short yourself when it comes to salary negotiations. You should have enough to live, pay taxes, and make room for whatever makes you happy.

Be clear about what you bring to the organization.
What’s your specific strength that you bring to the table that your nonprofit can’t live without? Does the organization rely on your financial expertise or fundraising ability? How about your supervisory and team-building skills? Sometimes you’ve got to blow your own horn to get people to move. Reminding your boss why he or she needs you (in an appropriately diplomatic way) will definitely work to your advantage when you ask for a raise.

Most importantly, don’t punk out.
When you’re in the meeting with your boss to talk raises or more benefits, for goodness sakes don’t beat around the bush. Speak up for yourself and don’t lose focus on what you came to do: obtain more money. Be clear in your request and don’t try to be vague thinking your boss will get the hint. Ask direct questions, and you will get direct answers.

Here’s what you might say in your meeting with your boss:

I appreciate the opportunity to have this conversation about adjusting my salary. From my scan of salary surveys of other positions in similar organizations, a typical program manager makes at least $40,000 and I feel my current salary of $32,000 is low. Given my contributions and accomplishments, I think a raise to $40,000 is more appropriate. Will you consider this salary adjustment at this time?

(Make sure you set a specific time to resolve the salary adjustment question if you don’t or can’t get an answer right away. Try: I understand that you need to take some time to think about this. Why don’t we touch base again at 10am next Thursday?)

If you get the big N-O, go beyond salary.
If you can’t get a raise, but want to stay at your nonprofit anyway, don’t go away with your tail between your legs. Ask for the next best thing: more vacation time, flexible work hours, or a year-end bonus. Also don’t be afraid to ask to do less work. If you’re walking away with the same $32,000 you came in your boss’ office with, they need to take some responsibilities off your plate. Don’t let your nonprofit take advantage of you. Fair is fair. If you can’t get more money, don’t let your boss give you more work.

I’m not saying you should throw in the towel if you don’t get your way, but if you can’t work with your organization on the salary issue, I’d rather you quit your job than be miserably broke. Being a martyr for your nonprofit is just not cute, so don’t do it.

Has anyone tried these techniques with success (I have!)? If not, what’s holding you back from asking for what you want?

Did you enjoy this post? Subscribe and automatically receive new ones!

Subscribe in a reader

Tags: Career Advice

Anonymous

Another way to achieve a higher salary in the nonprofit sector is to be a worker in the profit center (fundraising), rather than the cost center (program management). Fundraisers/ development professionals / the people who bring in the money - whatever you want to call them - typically earn more than those who spend the money (program staff), at the same title level and age range.
Anonymous

I think it's important to tout your successes all the time - not just when you're asking for a raise. It doesn't come naturally to me, but a former boss taught me to keep a list of accomplishments for the department, and when big tasks are completed, add them to the list. It just takes a minute and is a great thing to share at the end of the year with your boss. Also makes resume-writing a lot easier!
Elisa

Hey Rosetta,
As usual, great post. I got about halfway through writing my own post on the topic and then looked over here. Looks like great minds think alike :)
http://www.nonprofitcongress.org/?q=node/898
Elisa
Amy Springmeyer

I have to chuckle at your comment to avoid titles with "assistant" in them because I just transitioned from "program manager" to "technical ASSISTANT specialist" and make $8k more a year because of it. Less work, less responsibility (no managing) of course, but definitely MORE money and more time to work on my Master's thesis.

As for the other recommendations, I have to agree that it never hurts to ask and one should always have some data to back up their requests.

In my former position as a manager, we were unable to provide either COLA's or merit raises for 2 years. My employee came up with some alternatives, such as 1/2 days off on Fridays, a flex day here or there, etc. It was completely reasonable and he got the extra time off.
Nereid

thank you thank you thank you thank you!!!!

I'm the sole staffer at a small performing ensemble based in Philadelphia. I'm the first full-time employee they have ever had, and getting them to come up with $40k for a salary was hard! That was four years ago, and it hasn't changed, except that I started at part-time (30) and am now full-time (40). When I bring up the money issue, I'm told they just gave me a raise. I say, no, you gave me more hours. The pay rate hasn't changed.

I know I need to negotiate something better, but I also know the organization can't afford it. Lame excuse, I know.
Jennifer Lynn

I work for a NYC nonprofit. While the disparity in CEO to regular person salary in nonprofits is huge—it’s the same way in for-profit companies. The market simply requires the CEO’s/ED’s salaries to be the most competitive. But staff salaries should also be competitive; and they are in for-profit companies.

The difference is that nonprofits are funded by government agencies or donors who want to say that X high percentage of their funds goes “directly to those in need.” (I also think that they assume we do the work becasue we love it, and that love will pay the rent...HA!)As a result, agreements/contracts often prohibit nonprofits from dedicating a reasonable amount of resources to staff salaries and overhead costs. Unfortunately (like teachers and cops) society likes to say they value nonprofit workers, but if you follow the money, nothing could be further from the truth.

That said, this screwed up system will start to become less sustainable if nonprofit workers rise up, en masse, and do what Rosetta suggests here. If we refuse to work for less than we’re worth (within reason), the industry standard and funder expectations will begin to rise.
Anonymous

Rosetta, thank you for this post. Really. This relates to the previous WaPo article about non-profits not being able to retain talent. I see this unfortunate pattern in non-profits lately: They hire you young (20s) and underpay you because they can. They continually place new pressures and growth expectations on you, while simultaneously never giving you a raise and telling you "times are too tough" to even have the audacity to ask for a raise.

In their minds, once you get to the point where you start asking for a raise or other rewards, it's time for you to move on and for them to hire some other young, over-eager person for the position.

I honestly get the feeling that they don't even care if you leave--they might even WANT you to leave.

There is this non-profit culture that balks at one's "boldness" for expecting anything more. It's really pretty hostile and assumes you should have zero agency and bargaining power. (The audacity of expecting your pay to reflect your performance!)
Ask a Manager

I manage a medium-sized nonprofit and do our hiring and negotiation and most of this advice is absolutely right on. Here's the thing: I will pay as much as I need to pay to get good people. If it becomes clear that I need to pay more to get the right people, I will end up recognizing that I need to pay more. It's basic market economics. If I want you badly enough, you can absolutely negotiate more money -- not an astronomical amount, but you can almost always add on a few thousand dollars, minimum, when we're hiring you, if you go after it. And sometimes more, depending on the position and how hard it is to fill. (Conversely, though, if it's a position that's easy to fill with someone good, you have less bargaining power.)

The one thing I disagree with is asking to do less work in exchange for less money. I'm all for putting reasonable limits on how much work burden you take on, but linking it to salary is likely to rub your boss the wrong way.