Category Archives: Compensation

CBIZ Webinar – FLSA Overtime Regulatory Changes

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By:          Zack Pace, SVP, Benefits Consulting

Last week, Stephen Miller of SHRM interviewed me regarding the probable impact of the new FLSA overtime regulations on employee benefit eligibility terms. In short, I don’t foresee a major impact. The resulting article is available, here: Overtime Pay Changes Will Affect Employee Benefits, Too.

On the other hand, as many of you have already fervently explained to me, the impact to cash compensation structures could be sweeping. Fortunately, my colleagues in CBIZ Compensation, Ed Rataj and Amber Duncan, have closely followed these proposed and final regulations since the beginning. Along with Karen McLeese, JD, they will share what they’ve learned and what to do next in upcoming webinars on:

  • May 25th at 11:30 AM EDT
  • June 14th at 11:30 AM EDT

Which date and time is more convenient for you?

Agenda for the webinar:

  • Overview the new regulations
  • Review the ramifications, potential unintended consequences, and long-term implications
  • Discuss creative implementation strategies
  • Review illustrative examples

The full invitation is available here: https://attendee.gotowebinar.com/rt/5803185362686746370

I hope you can join us.

You can reach me on zpace@cbiz.com or via Twitter.

Total Compensation for Nonprofits: What’s Changing

Total Compensation for Nonprofits

Zack Pace, SVP, Benefits Consulting at CBIZ; and Priya Kapila, Manager, Compensation Consulting at CBIZ present at the CBIZ Annual Update on January 14, 2015.

By:  Zack Pace, SVP, Benefits Consulting
Priya Kapila, Manager, Compensation Consulting

Because cash compensation is lower at nonprofit organizations than at for profits, nonprofit benefit compensation is higher. That’s been the Prevailing Wisdom for years, right? For example, a CBIZ colleague that teaches the Certified Employee Benefits Specialist (CEBS) course confirms that this lesson is part of the curriculum.

However, over the last few years, we’ve noticed changes afoot. We began noticing less differentiation between nonprofit and for profit salaries and benefit designs. Thus, we began to wonder if the Prevailing Wisdom was changing.

For our Annual Client & Friends seminar, we decided to research this topic and confirm if our observations were anecdotal aberrations or part of a larger trend. Our resulting presentation is located here, on SlideShare: Total Compensation Considerations for Nonprofits.

Our research confirmed that:

  1. Because nonprofits are increasingly competing with for profits for talent, the difference in guaranteed cash compensation has narrowed.
  2. The benefits compensation gap has also narrowed because of this increasing competition and the impact of the Affordable Care Act.
  3. This narrowing is more pronounced for staff total compensation than it is for executives.

Our source material is cited in the presentation.

Five interesting examples from our research:

  1. More pay disparity often exists between various types of nonprofits than does, for example, between a nonprofit association and a for profit employer.
  2. While there’s downward pressure on nonprofit executive pay via regularity scrutiny and public opinion, there’s upward pressure via transparency and competition with for profits.
  3. High Deductible Health Plan adoption among nonprofits is almost on par with for profits.
  4. Because of The Affordable Care Act, for profits have lowered their hours requirement and reduced their eligibility waiting period to levels similar to that of nonprofits.
  5. Considerable interest in Nonqualified Deferred Compensation programs is building among nonprofits as a means of creating “golden handcuffs.”

We concluded our presentation with this call to action:

  1. Benchmark your benefit programs.
  2. Benchmark your salary levels and executive pay.
  3. Evaluate how much your organization is competing against for profits for talent.
  4. Make any prudent adjustments.
  5. Develop a 3-year evergreen plan.

Final Questions to consider:

  1. Is your nonprofit increasingly competing with for profits for talent?
  2. If wages at your nonprofit are now similar to for profits, should reductions in your benefits compensation be considered?

Please let us know via the below comment section.

You can reach Zack on zpace@cbiz.com and follow him on LinkedIn & Twitter.

You can reach Priya on pkapila@cbiz.com and follow her on LinkedIn.