How can you create an inclusive and equitable compensation structure for your theatre team?

1 Define your compensation philosophy

Your compensation philosophy is a statement that outlines the goals, principles, and methods of your theatre's pay system. It should be in line with your mission, vision, and culture, as well as the expectations and needs of your team. Having a clear and consistent compensation philosophy can help you communicate your rationale and criteria for pay decisions, thus fostering trust and transparency among your team members. To define your compensation philosophy, consider what objectives you want to achieve with it - such as rewarding performance, loyalty, innovation, or collaboration - and what values and principles guide your compensation decisions - such as equity, diversity, inclusion, or sustainability. Additionally, think about how you determine and measure the value of different roles and contributions in your theatre - whether it be through market data, job analysis, performance reviews, or feedback - as well as how you adjust and update your compensation structure over time - for example through annual reviews, surveys, benchmarks or audits.

2 Conduct a pay equity analysis

A pay equity analysis is a process of comparing the pay rates of different groups of employees who perform similar or comparable work, and identifying any gaps or disparities that may be caused by discrimination or bias. Not only is pay equity a legal requirement, but it's also a moral and ethical obligation for your theatre. It can help ensure fair and equitable pay for all employees, regardless of gender, race, ethnicity, age, disability, or other protected characteristics. Additionally, a pay equity analysis can help you avoid potential lawsuits, reputational damage, and employee dissatisfaction. To conduct a pay equity analysis, you should first define the scope and criteria of your analysis - such as which roles, functions, or departments to compare and what factors to consider - then collect and analyze the data from sources like payroll records or job descriptions. After that, identify and explain the gaps or disparities in pay rates by looking at causes like market fluctuations or structural inequalities. Finally, develop and implement action plans to address the gaps or disparities such as pay adjustments or training programs.

3 Establish a pay scale and structure

A pay scale and structure is a system of assigning pay ranges and levels to different roles and positions in your theatre. It can help you standardize and simplify your pay decisions, while ensuring internal and external equity and consistency. Additionally, a pay scale and structure can help you manage your budget and resources, as well as motivate and retain your team members. To establish a pay scale and structure, you need to define the job categories and classifications, determine the pay ranges and levels, and apply the pay policies and practices. This could include grouping roles and positions based on their functions, responsibilities, or qualifications; setting the minimum, midpoint, and maximum pay rates for each job category or classification; or applying the pay scale to current or prospective team members based on their performance, experience, or skills.

4 Communicate and review your compensation structure

Your compensation structure is not a fixed system, but one that requires regular communication and review. It is essential to communicate your compensation structure to team members and other stakeholders, such as funders and donors. Doing so can help inform and educate them about the rationale and criteria of your pay decisions, as well as demonstrate your commitment and accountability. You can use emails, newsletters, handbooks, or meetings to share and explain your compensation philosophy, policies, and practices. Additionally, documents, reports, or dashboards can show and breakdown the pay rates and benefits of each team member. Interviews, surveys, or focus groups can also be used to listen and respond to the questions, comments, or suggestions of your team members. To review your compensation structure, you can monitor the outcomes and impacts using indicators or metrics. Additionally, trends, forecasts, or scenarios can help assess and adapt to changes and challenges that may affect your compensation structure. Finally, plans or actions can be used to implement and communicate improvements and adjustments that may enhance your compensation structure.