Housing Opportunities and Maintenance for the Elderly (H.O.M.E.)

COMPENSATION PHILOSOPHY STATEMENT

Board of Directors approval on December 7, 2020

Introduction

H.O.M.E. strives to be a leading mission-driven organization that is a sought-after place to work. We want to compensate staff fairly and competitively and provide a robust array of benefits; to create an environment that encourages an appropriate work-life balance and respects employees’ time and lives as whole people; and to build a diverse and equitable workplace. This is important as an organizational value. Retaining talented staff is a priority. We want to keep excellent team members and support ongoing learning and professional growth. We believe the best way to achieve our mission is to attract, train, and retain and support a committed, talented, diverse team of employees. We created this policy to be explicit about our compensation and salary structure in the interest of promoting transparency and equity. H.O.M.E. administers the compensation program in a manner that is consistent and free of discrimination.

Establishing Salary Ranges

1. H.O.M.E. provides pay levels that are at a minimum, externally competitive at market rates with peers in similar positions, in similar-sized nonprofits and in our region.

2. Our values reflect a commitment to minimally pay Resident Assistants the “Living Wage” ($15.00/hour in 2020) as determined by the National Employment Law Project.

3. We minimally pay all other permanent staff positions the “Housing Wage” each year ($20.68/hour in 2020) as determined by the National Low-Income Housing Coalition.

4. Our midpoint salary ranges are compared to market rate by analyzing the medians of salary ranges listed in national, regional, and local nonprofit salary surveys of nonprofits working in the same field and with the same budget size. In addition, we review 990 data from peer organizations.

5. All job descriptions are evaluated for qualification requirements, impact, and scope. Similar positions are grouped together on a “salary band” (the horizontal row) on the salary range chart.

6. Salary ranges in a salary band are the same regardless of department. We value the work of each department equally--all departments are key to the success of our mission. Salary levels for all Director, Manager, Coordinator, and Assistant positions are aligned across departments. This ensures that the principles of pay equity are applied.

7. Every three or four years, we revise the Salary Range Chart by using national, regional, and local nonprofit salary surveys to ensure we stay at market rates. If changes to the Salary Ranges Chart are then made, it is presented to the Executive Committee for approval during a committee meeting prior to the board meeting during which the annual budget is approved.

8. Salary ranges and performance criteria are published on a Salary Ranges Chart. We communicate openly regarding our budget realities and the design of our compensation program. The Salary Ranges Chart is available to all employees in the Employee Handbook. The compensation-setting process is intended to be transparent so that all employees and supervisors understand the salary-setting process.

COLA

9. H.O.M.E. is committed to ensuring that employees keep up with cost of living increases to ensure their financial stability. Cost of Living Adjustment (COLA) will be budgeted and awarded each year. We see this as an economic justice issue.

10. Every year, the Salary Ranges Chart is increased by the Cost of Living Adjustment (COLA). The COLA is determined each October 31st for the following calendar year by using the amount set forth by the Social Security Administration.

11. COLA will be budgeted each year during the Board-approved budget process and awarded to all employees not currently on a performance improvement plan or with verbal/written warning(s)

a) New hires after July 1 (the last quarter of the fiscal year) will not be granted COLA in their first year

b) Each year, the Salary Ranges chart is adjusted by the COLA in January and salaries are adjusted and paid

c) Merit raises based on performance are handled in a separate process and do not relate to COLA.

Starting Salaries

12. Upon hiring a new employee, salary is determined based on skill, knowledge, and experience the individual brings to the position. Starting salaries are set within the first two columns of the Salary Ranges Chart.

Additional qualifications that could warrant a starting offer above this include:

• Established reputation in the field.

• Demonstrated ability to handle more complex work.

• Demonstrated high degree of competency in most of the core skills required of the position.

• Experience with lived experience of housing instability or homelessness.

• Additional years of relevant work beyond the minimum required of the position.

• Additional education in the field beyond the minimum required of the position.

Merit Increases

13. Each year, as a part of the annual budget process - which is subject to Board approval - the Executive Director will budget a salary pool for merit raises.

14. A salary request process is followed: Compensation will be reviewed with staff at the time of the annual performance evaluation. Factors for possible merit raise consideration include Performance Criteria, budget for the coming year, responsibilities, and the recommendation of the supervisor to the Executive Director. They deliberate, reach a decision, and HR prepares written notification for each staff and the HR files. If salary is to be changed, the new amount will normally be effective at the beginning of the fiscal year. On rare occasion, a salary raise request may fall outside the annual evaluation and budgeting process.

15. A performance evaluation must be completed and submitted before a merit-based raise request is considered.

Benefits

16. H.O.M.E. benefits are a key component of the total compensation package offered to employees and reflect our values. H.O.M.E. provides a leave and benefit package that matches or leads the nonprofit market for some of the non-insurance benefits. H.O.M.E. has a commitment in FY2021 to develop a plan to match the market for insurance benefits in the future.

17. Every three years, we conduct benefits survey research to ensure this.

18. H.O.M.E. seeks to improve the benefits package and is actively exploring new options and ways of maximizing the impact of our benefits spending.

Executive Director’s Salary

19. The Board of Directors hires the Executive Director and is responsible for setting compensation. To conform with IRS and other applicable rules regarding the process for setting Executive Director compensation and benefits package, the Board of Directors may use additional processes from the ones laid out in this policy, to determine the compensation.

Changes in Position

20. Promotions: Promotions are moves from one position (and salary band) to another. When an employee is promoted, they take on a new role, leaving their former position vacant, to be filled or eliminated. A promoted employee will generally be offered an increased salary based on the new position’s salary band. The salary offered at time of a promotion will generally be based on the same criteria as an initial hire. No promoted employee will be asked to take a reduction in salary

21. Lateral moves: A lateral transfer occurs when an employee accepts an offer to move to a different position in the same salary band. A lateral transfer generally does not include a salary change.

H.O.M.E. presents this written policy in the spirit of transparency, but it does not create a binding legal obligation, nor does it constitute an employment contract or guarantee of compensation. H.O.M.E. retains the discretion to make alterations to this policy at any time.