Coming out of Covid, many food banks that benefitted from pandemic-era giving and extra government aid directed more funding toward employees, particularly to lift the pay of low-wage workers (see our story here).
A few years later, outside aid is now harder to come by, but the work to ensure a more equitable wage structure and better employee benefits goes on. “To me, this is a continuous improvement project,” said Jackie DeCarlo, CEO of Manna Food Center in Silver Spring, Md.
A recent study confirms the need to keep at it. Independent Sector, a research firm focused on promoting the health of nonprofits, found that 22% of the nearly 13.9 million citizens working in the nonprofit sector live in households with income below a standard threshold of financial survival. The rate is even worse (30%) among the estimated 136,000 paid employees working in the Community Food and Housing nonprofit subsector.
As with the clients of food banks, employees who work at food banks often feel the impact of the ever-rising cost of living. On Long Island, for example, which stretches east of New York City for more than 100 miles, apartment rentals can range up to 40+% higher than the national average. “We know people are struggling,” said Paule Pachter, CEO of Long Island Cares. “It’s not a joke when staff says, ‘We work here and we could go to a food pantry.’ That hurts.”
Over the past three years, Long Island Cares has undertaken a concerted effort to increase its minimum wage, increasing it to $21 an hour, up from $15.50 an hour. During that time, the food bank has also instituted staff bonuses based on annual performance reviews. While the bonuses are very welcome, “raising the minimum wage was really, for our staff, the most important thing,” Pachter said.
In New York City, perhaps the most expensive place in the U.S. to rent an apartment, Holy Apostles Soup Kitchen and Food Pantry, ensured that everyone in its organization was earning a minimum of $25 an hour during its most recent compensation assessment in 2023. “We’re invested in the well-being of our community and for us that means starting right here in our building, with the well-being of our staff,” said Michael Ottley, Chief Operating Officer.
At Manna, feedback from its Staff Advisory Committee helped accelerate by one year the timing of Manna’s regular salary survey, for which it utilizes an outside firm. The findings resulted in Manna moving toward 15% increases in its pay bands, said Angela Whitmal, Senior Director for People and Culture.
Other benefits aim to improve the experience of working at Manna. The nonprofit, for example, recently leased a car to accommodate staffers who don’t own cars but whose jobs require them to be out in the community. Other benefits include a generous 403(b) retirement plan and an additional two weeks of vacation or the cash equivalent after seven years of service.
Elevating wages, however, is not an easy task. Houston Food Bank has been “chipping away at it,” said CEO Brian Greene, reaching $18 an hour as its minimum, well above the state-mandated minimum of $7.25. “I wish it were higher, but that’s where we are,” Greene said. Other benefits from Houston Food Bank include company contributions to retirement, insurance and health plans, as well as pet insurance and tuition reimbursement.
Like many food banks, Houston Food Bank is facing cost pressures, having expanded its programming during Covid. It now has a new department focused on neighbor engagement, as well as a ten-person data team that runs a full-fledged data warehouse. The extra programming, combined with heightened output to address ongoing demand, makes it harder to operate profitably. “It’s hard to make progress on wages in a deficit world,” Greene noted.
Some food banks are structuring employee benefits with an eye toward making them more equitable between high-wage and low-wage earners. Starting next calendar year, for example, Food Bank of the Rockies in Colorado will begin a tiering system for health benefits so team members earning higher wages pay slightly more for health insurance, said Erin Pulling, President and CEO. Another benefit recognizes that workers who are originally from other countries may have special skills. Currently, 30 team members at Food Bank of the Rockies speak a second (or third) language, for which the food bank pays them at least a $200 monthly stipend.
Attention is also being paid to the more inflexible nature of low-wage work. Team members who cannot work remotely, like warehouse workers and drivers, now get two annual “utility days” at Food Bank of the Rockies. “This is one small step in recognizing the inequity that team members who are able to work remotely do not need to take a PTO day when having a home repair and so on,” Pulling said.
At Long Island Cares, a similar type of benefit has resulted in an unexpected upside. Post-pandemic, the food bank issued laptops to program staffers and allowed them to work remotely one day a week. Some staff members requested working their 40-hour work week in four days. “That was a big win for us, because now it allows us to function five days a week, from 8 am to 6 pm, where it used to be 8:30 to 4:30,” Pachter said.
Other benefits run the gamut. The Food Bank Network of Somerset County in New Jersey, which pays workers a minimum of $22.50 an hour, started a program last year that reimburses each full-time employee $5,000 a year for medical, dental and vision expenses. “It’s very flexible and a lot cheaper than a formal health insurance plan,” said Steve Katz, Executive Director. Next year Somerset will offer a 403(b) retirement plan.
Holy Apostles Soup Kitchen also offers a 403(b) plan, as well as a full benefits package with minimal contributions, a flexible spending account, reimbursement for public transit, ample vacation time, and summer Fridays. Its approach to employee well-being is holistic, Ottley noted. “We also offer a hot, healthy lunch to employees and volunteers after our soup pantry hours are complete for the day.” – Chris Costanzo
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