CHAPTER TWENTY-THREECOMPENSATIONTOTAL REWARDS PROGRAMS IN NONPROFIT ORGANIZATIONS

Nancy E. Day

Some profit and nonprofit organizations, particularly those that are smaller and less sophisticated, consider employee compensation as an onerous and expensive obligation on which as little time as possible should be spent. Salaries and benefits may be set haphazardly, based on “gut feelings” about how much certain jobs bring on the general market or on the difficulty of attracting qualified people to key positions. These organizations view compensation as extraneous to their organization's overall mission or strategy. This is unfortunate and unwise, given that labor costs make up over 50 percent of total costs for many U.S. employers (Milkovich, ...

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