Tag: nonprofit wages

Study: Human Service Wages Are Even Worse Than You Imagined

By Erica C. Barnett

It’s well-known that human services workers, particularly those who work for nonprofit agencies, are underpaid, making less than both private-market workers with similar backgrounds and skills and government employees who do similar work. A new city-funded study, initiated by the Seattle Human Services Coalition and conducted by researchers at the University of Washington found that nonprofit human-services workers are paid 37 percent less than workers in other industries with comparable jobs, and that people who left jobs in human services for jobs in other fields saw their wages increase more than 14 percent.

The study took a novel approach, comparing jobs based on factors like responsibility, skills, and effort required to perform them, regardless of whether they were in the same field or had a similar job description. The idea was to eliminate some of the disparities that are built into many job types; jobs that are mostly held by men, for example, tend to pay significantly more than jobs that are mostly held by women even if the jobs require a similar level of education, experience, and skill.

“Previously, a lot of us would use different surveys that would compare nonprofit to nonprofit without really looking at the underlying factors of what makes up our jobs,” Ballard Food Bank executive director Jen Muzia said. In this “comparable worth” analysis, for example, a school age enrichment worker (average salary: $45,000) has a similar job worth as a journey electrician (average salary: $79,000.)

Using this method, along with a straightforward market analysis of average wages for different jobs in human services and non-human services positions, the researchers concluded that “human services workers are systematically paid less than workers in non-care industries, with estimated pay gaps of 30% or more.” To reach parity, the report concludes, human service workers would need an average pay boost of 43 to percent.

In the short term, the researchers recommend pay increases of 7 percent across the board for nonprofit human service workers, on top of annual adjustments for inflation, with longer-term substantive changes—such as new salary standards with minimum pay for various types of jobs—by 2030.

“We’ve had to delay the start of some of our preschool classrooms for about two months because we didn’t have the staff to open the classroom. It impacts kids’ and families’ access to the programs and services that they need.”—Neighborhood House director Janice Deguchi

Nonprofit leaders say they’re losing talented workers—and struggling to recruit new ones—because they can’t offer competitive wages. Janice Deguchi, the executive director of Neighborhood House, said the nonprofit recently lost a teacher who had been working to connect a developmentally delayed child to the group’s early-learning program and other services.

“She worked all year to help this family,” Deguchi said, “and then she left the entire field of early learning to work in marketing for more money.” Faced with the prospect of starting all over with a new set of teachers, the family left the program. “That was just a huge missed opportunity,” she said, “because that teacher couldn’t stay in the field.”

More broadly, Deguchi said, low wages have made it hard to hire qualified staff. “We’ve had to delay the start of some of our preschool classrooms for about two months because we didn’t have the staff to open the classroom. So it does impact kids’ and families’ access to the programs and services that they need.”

Steve Daschle, the director of Southwest Youth and Family Services, said another issue with high turnover is that nonprofits have to constantly train new workers, which means “we don’t have the opportunity to develop relationships—which is key to building successful human services efforts. People leave as they gain the expertise. They move to a different sector. And so we have to start from scratch with new staff in those positions and that, I think, hampers our ability to fully support the community.”

The Human Services Coalition will use the study as part of its advocacy campaign for higher wages at nonprofits, which organizer Jason Austin says will go beyond annual requests for funding from the city and King County. “We’re going to take these results to all of the community groups and to our members and really have a live conversation about what it’s going to take to raise [new] revenues, because it’s not necessarily just the traditional policy advocacy,” Austin said. “Jen’s program [the Ballard Food Bank] is mostly funded by from non governmental sources. So we also need to take this information to individual donors to the philanthropic community, to private funders, and also implement the recommendations of the report in those spaces.”

Getting the city and county to support large wage increases won’t be easy. For years, both governments have struggled to fund cost of living increases that would keep social service providers’ wages from declining in real terms—much less raise them to livable levels. Last year, Mayor Bruce Harrell proposed capping wage increases for homeless service providers well below the rate of inflation, an effective pay cut. Although the city council restored the inflationary increases, which are required by law, the bump will only keep these workers’ real wages at the same level as last year.

Meanwhile, the King County behavioral health crisis center levy, on the ballot in April, includes funding for higher wages at the new county-run crisis centers, but does nothing to increase pay for other workers whose wages are funded through county contracts..

Early Council Budget Concerns Include Plans to Raid JumpStart Tax, Cut Pay for Human Service Providers


Chart showing growing gap between city of Seattle revenues and planned expenditures through 2026By Erica C. Barnett

In a preview of the next several weeks of budget deliberations, the city council’s budget committee (which includes all nine council members) discussed their initial questions and concerns about Mayor Bruce Harrell’s proposed budget this week.

The budget would require the city council to overturn a 2019 law Harrell himself supported when he was on the council. That law requires the city to increase human service provider contracts by the rate of inflation, with the intent of providing raises to service providers that at least keep up with inflation; during the meeting when the council unanimously approved the law, Harrell said it was important to provide raises to human service providers “in both periods of economic growth and in periods of economic hardship,” and sponsored an amendment codifying this intent.

The contracts that would be impacted include all the homeless contracts the city funds but that are now administered by the King County Homelessness Authority. Harrell’s proposal would amend this law to cap mandatory pay increases at 4 percent a year, or about half the current rate of inflation, meaning that as long as inflation is higher than 4 percent, human services workers would see declines in real wages year after year. Harrell’s budget cites economic hardship as the reason he is proposing the cut.

Three years ago, Harrell took the exact opposite position. In 2019, as council chair, he proposed and passed an amendment emphasizing not only that the money needed to go directly to “underpaid” workers but that the city intended to provide full inflationary increases “in both periods of economic growth and in periods of economic hardship.”

Harrell’s proposed $10 million budget increase for the KCRHA would be earmarked mostly for shelters and tiny house villages, rather than the items the homelessness agency proposed funding in its request for $90 million in additional city and county funding; that unfilled request would have funded a 13 percent wage increase for homeless service providers.

“In the entire spectrum of building this budget, this decision was particularly difficult,” city budget director Julie Dingley told the committee. “We know that human service provider workers do some of the most difficult and meaningful work in the city and that employers do not necessarily enjoy the funding needed, but unfortunately, during forty-year high inflation, the ongoing liability that the current law would require, does not match our ongoing general fund resources.”

Three years ago, Harrell took the exact opposite position. In 2019, as council chair, he proposed and passed an amendment emphasizing not only that the money needed to go directly to “underpaid” workers but that the city intended to provide full inflationary increases “in both periods of economic growth and in periods of economic hardship.”

Introducing his amendment at a full council meeting that year, Harrell said, “Some of us have been around where we’ve had real tough times, [during] a recession. While we’ve had to make tough cuts, the work [human services providers] do is so critically important that we recognize we have to preserve if not even enhance the funding” during economic downturns.

On Wednesday, Councilmember Lisa Herbold, echoing comments by budget chair Teresa Mosqueda, said she was “disappointed” that the mayor’s budget would permanently cap increases for human service providers regardless of the actual inflation rate. ”

“We heard from folks this morning, nonprofit leaders, who have already passed budgets that provide a modest but essential wage increase for staff on the strength of their trust that the city was going to to follow the law and fully fund the required increase,” Herbold said. “Our intent is to advance nonprofit worker wages, not force them further behind, which I feel that this proposal does.” 

Listen to this week’s Seattle Nice podcast, where Sandeep and Erica find rare common ground in condemning pay cuts for human service providers 

As of earlier this year, the KCRHA reported that the five largest homeless service providers had more than 300 vacancies for jobs that average between $20 and $25 an hour, or between $41,000 and $52,000 a year. Increasing all human services contracts (which include more than just homeless providers) by 7.6 percent, as existing law requires, would cost about $6.5 million. As a point of contrast, Harrell’s budget includes more than $4 million for police recruitment and retention strategies, an effort to increase the number of Seattle Police Department officers that includes hiring bonuses of up to $30,000, on top of an $83,000 starting salary that rapidly increases to six figures, plus overtime, according to SPD’s recruitment page.

Bar graph contrasting low human service provider wages with the Seattle median
Image via King County Regional Homelessness Authority

Harrell’s budget proposes a second change to law that takes the opposite approach to high inflation as his proposal to cap human service contract increases below inflationary levels. This change would allow the city to use the JumpStart payroll tax fund, which is earmarked for housing, Green New Deal programs, equitable development, and small businesses, to provide about $86 million toward filling the $140 million budget gap.

Last year, the council passed a law setting a clear limit on the use of JumpStart funds to backfill general fund shortfalls: If the general fund falls below $1.5 billion, the city can use JumpStart money for other purposes. Harrell’s budget would change that law to pin the general fund baseline to inflation, setting the floor for JumpStart transfers at a variable rate based on the current rate of inflation and allowing the city to use more of the earmarked money for non-JumpStart purposes whenever high inflation leads to economic hardship.

That money includes a presumption of $44 million in unspent JumpStart funds from this year, most of which would go toward a new revenue stabilization (“rainy day”) fund equal to 10 percent of JumpStart revenues every year; another $9 million would pay for administering the JumpStart tax itself through the general fund.

Mosqueda, the architect of the JumpStart tax, said she had questions about how the mayor is proposing to spend the repurposed tax and whether his plan aligns with the four priorities in the original JumpStart legislation.

“We have to continue, as a council, to make sure any of the higher-than-anticipated revenue that is being suggested to be used for investments into the general fund does still align with our city’s core progressive values” as well as “with the priorities this council has articulated in the past,” Mosqueda said.

“Part of the demand we all heard was, you have to tell us where you’re going to spend this [JumpStart] money. I totally agree that we need more revenue in the general fund so we can do the basic things that we need to do as a city, [but] these are commitments we have made to the people of Seattle.”—City Councilmember Tammy Morales

For example, Mosqueda questioned the mayor’s proposal to use $3 million a year in JumpStart funds to pay for 14 new positions at the city to support Sound Transit’s construction of light rail from West Seattle to Ballard, which Dingley said fits into the “Green New Deal” spending category because it involves shifting people from single-occupancy vehicles to trains.

When the council first considered the JumpStart tax, Councilmember Tammy Morales notes, “Part of the demand we all heard was, you have to tell us where you’re going to spend this money. … I totally agree that we need more revenue in the general fund so we can do the basic things that we need to do as a city … [but] these are commitments we have made to the people of Seattle” in the JumpStart spending plan itself and subsequent legislation codifying the spending categories the tax can be used for.

Chart outlining Mayor Harrell's proposed changes to the uses of the JumpStart payroll tax

Harrell’s budget proposal would also broaden the use of the JumpStart tax to allow it to fund housing for people making up to 60 percent of the area median income; currently, the tax primarily funds housing for very low-income people making up to 30 percent of AMI, a group that is not served at all by the market-rate housing market. The JumpStart tax can already pay for mixed-income housing that includes people making up to 60 percent of median, but the change would likely change the balance in favor of people making more money.

Harrell’s budget uses $20 million in unspent funds from 2022 and assumes an ongoing $10 million annual “underspend” in both 2023 and 2024; City Budget Office director Julie Dingley told council members Wednesday that she “would prefer not to have to use this kind of strategy,” but that “we feel comfortable at this point that there will be about this amount left at the end of the year” to balance the next year’s budget.

The budget also proposes using general fund dollars to continue and expand the Clean City Initiative and the new Unified Care Team, which together clean up trash, displace and relocate encampments and RVs, provide information about services and shelter beds to people being displaced by sweeps, and take residents’ complaints about encampments. The proposed budget would allocate more than $13 million to these programs, not counting the many individual line items related to graffiti cleanup, a particular pet peeve for Harrell. The budget would spend more than $800,000 on graffiti abatement, plus another $250,000 on Harrell’s One Seattle Day of Service, which includes graffiti abatement by volunteers.