Sample Request for Proposal (RFP) for Wage/Compensation Comparability Study

We all know that recruiting and retaining talent is critical to the success of all nonprofit organizations.  However, establishing competitive compensation is often a challenge, as funding can be limited and is strategically directed to programming.  In order for organizational leadership and Board of Directors to understand what impact compensation can have on achieving the organization’s strategies, an analysis needs to be performed to understand the current state of compensation.  Each role should be evaluated against the market, specifically looking at competitive organizations, in order to determine what a competitive compensation package is for each role.  In addition, the impacts of the increase in minimum wage in many states and the impact of salary compression is necessitating a better understanding of compensation.

As a best practice, organizations should significantly consider working with an independent 3rd party when dealing with compensation.  Many organizations also have a requirement, whether from their funding source or within their policies and procedures, to evaluate compensation every 1 to 3 years.  In order to assist making that process more efficient, we have developed a sample RFP to assist you in securing a 3rd party organization to help you analyze your compensation.  Feel free to use this tool in the current state, or edit to make it work for your organization.