Salary, hiring freeze still in place at Adventist Church headquarters

A salary and hiring freeze at Adventist Church headquarters will continue despite recent market gains, said world church treasurer Robert E. Lemon, who cited decreased tithes and offerings and other budget constraints among the reasons. [photo: Megan Brauner/ANN]

Seventh-day Adventist Church financial officers today reminded employees at world church headquarters that weathering the aftermath of the global economic downturn would pose challenges for the foreseeable future, despite recent market increases.

While church officers are determined to avoid lay-offs and reductions in employee benefits, with fewer tithes and offerings worldwide, budgeting for next year will be "a struggle," said Robert E. Lemon, world church treasurer.

A $7.1 million gain projected by the church's second quarter statistics might "sound great," but "we can't budget on market gains," Lemon said during a scheduled meeting with employees August 11.

While stock market gains do mean employees' retirement plans are now on the upswing, market indicators only affect church investments and are not used to gauge salaries, Lemon said. If that weren't the case, he added, "Some years, we'd have to send you a bill instead of giving you a check."

Lemon said financial restraints and cutbacks implemented last fall -- including a hiring freeze at world church headquarters and delayed salary increases -- will remain in place, pending further economic review.

"We will try to make up for [salary constraints] as soon as the economy allows," he said.

Church financial officers are determined to avoid lay-offs and reductions in employee benefits, Lemon said, but with fewer tithes and offerings worldwide, budgeting for next year will be "a struggle."

Given the economy, Lemon said he was pleased that tithe is down in North America by only 2.3 percent. Mission offerings for the same region indicate a 4.5 percent decrease.

Outside of North America, reports indicate an 8.9 percent reduction in tithes and 9.8 percent fewer offerings. Using Canada as an example, Lemon explained that unfavorable currency rate exchanges are responsible for much of the decrease in tithes and offerings outside of North America.

"The [North American] report shows Canada down 14.2 percent in tithe year-to-date in U.S. dollars, but Canada is actually up 3.4 percent in Canadian dollars," he said.

As the best gauge of the economy's effect on tithes and offerings, unemployment statistics are of particular concern to church financial officers, Lemon said, adding that he was "really pleased" by last Friday's report indicating unemployment had decreased by one tenth of one percent in the U.S.

However, only individuals actively seeking jobs were considered "unemployed" by the report, meaning those who weren't handing out their resumes that week weren't counted, Lemon said, explaining how such reports sometimes fail to consider all factors.

Church officers will continue to monitor the economy, easing restrictions as appropriate, Lemon said, but any salary increases next year are "very unlikely." Employees could, however, still see annual merit-based raises within their pay brackets.

"I just praise the Lord that we're in a position, with enough working capital, that we're not having to sit here and say, 'We have to make some reductions in force,'" Lemon said.