Monday, February 11, 2019

Hey Fletch … Can you give some thoughts about bonuses for staff? We are toying with the idea and don’t know what to make of it.

DRF—There isn’t must hard research data on how many churches are doing bonuses and what they cover. What is commonly called a bonus at Christmas is really a small gift. I’m talking about a $25 gift certificate, the $50 ham or the $100 bill. For tax reasons, they are bonuses and taxable income … but not what people hope for when they hear the word “bonus.”

William Vanderbloemen pointed out in the Smart Money for Church Salaries workshops that some churches tie a significant bonus into productivity. That work is often measured against the expectations in the job description or in quarterly goals.

Some use a bonus to recognize performance that is far and above the ordinary, without much metrics attached. Another way is for a church to give a bonus to staff in lieu of raises.

Determine what works for your church culture. You will need to see how your staff respond and what fits your church polity.

For more information, check out the Smart Money for Church Salaries video series or the book.