How to Restructure Salaries and Staff in Lean Financial Times
Budget shortfalls can be reduced in a number of ways
Back in March, many thought the pandemic would end in a few short months, but as it stretches into month seven, the economic impacts are becoming harsher for some associations. Those who have been able to hold off cutting employees may now be looking at a more dire economic picture. If that’s where you’re at, thinking differently when it comes to compensation and job duties can help the economic picture as well, said an expert at financial advisory firm BDO.
“There are lots of changes in the way we go to work,” said Judy Canavan, a managing director who specializes in compensation at BDO. “Be as creative as possible with regard to holding your team together and utilize people in ways you had not thought of before, with regards to job sharing, or shifting to contract roles.”
A recent BDO survey found that 27 percent of nonprofits have made compensation adjustments in response to the COVID-19 pandemic. Some have reduced hours worked, taking people to 75 percent hours and 75 percent pay. Others have implemented pay reductions.
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