March 18, 2014

CAPintel

Nonprofit/Government Compensation Survey Results

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Bertha Masuda
Partner bertha.masuda@capartners.com 310-541-6233

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The survey, based on 2013 survey data, provides a rare look at how non-profit/government organizations attract, motivate and incentivize their employees. Data includes hard-to-find statistics on the size and nature of short-term and long-term incentive pay practices, including the types of plans and vehicles used. More than 175 participants from nonprofit and government organizations responded to the survey.

Previously conducted in 2007 and 2011, this year’s incentive pay compensation surveys represent our third collaboration with WorldatWork. With this longitudinal data, we provide insight on the key compensation trends and explain the reasons behind them.

Compensation Trends: Nonprofit/Government Organizations:

  • In 2013, 78% of nonprofit and government organizations reported using short-term incentive plans, while 16% reported using cash long-term incentive plans.
  • Nonprofit and government organizations favor simplicity by operating a limited number of short-term incentive plans. Of the respondents, 68% report having three or fewer short-term incentive plans in place.
  • The majority of organizations (62%) rely on 4 to 6 performance measures in their Annual Incentive Plans in order to reward performance across several different dimensions.