Brilliant consultant and thought-leader Mala Nagarajan returns to our podcast to share six practices that nonprofits can use to de-link privilege (or, on the other side of the coin, marginalization) from salaries, and reconstruct compensation in a way that is equitable.

The six compensation practices that Mala discusses are:

  1. Construct salaries with multiple components.
  2. No longer negotiate at the beginning of employment.
  3. Tie the highest salary to the lowest salary.
  4. Consider all salaries as interdependent, and to consider leadership at every level.
  5. Acknowledge that everyone has different capacities.
  6. Separate pay from performance.

These practices are drawn from the Compensation Scale Equity Process and Calculator™ developed by Vega Mala Consulting, of which our guest is Cofounder and Principal. We introduce this process and calculator in the episode as well, and discuss how nonprofits and other consultants can utilize it. We also discuss what nonprofits can do right away even if they are unable to work with consultants to address equity in their compensation structure.

Read the full article about nonprofit compensation by Rusty Stahl at Fund the People.