Why Church HR Matters

Human Resources (HR) is often overlooked in churches, but it’s one of the most important areas to get right. If you're wondering how to manage church staff legally and biblically, this blog post will give you a solid foundation. A strong HR system protects your ministry, empowers your team, and prevents legal pitfalls.

Step 1: Hire and Onboard Church Staff Properly

Hiring someone to join your church team is a spiritual and legal responsibility.

📝 Key HR Practices for Hiring:

• Use clear job descriptions that outline duties and expectations.

• Conduct background checks, especially for those working with children or finances.

• Provide an employee handbook that includes church policies, expectations, and legal disclaimers.

👉 STRONGChurches offers a Complete HR Kit designed specifically for churches.

Step 2: Understand the Legal Status of Church Workers

Many churches mistakenly misclassify employees as independent contractors.

📌 Quick Breakdown:

• Employees = receive a W-2, are on payroll, and must follow church policies.

• Independent Contractors = provide specific services, have more autonomy, and receive a 1099.

Misclassification can lead to IRS penalties, lawsuits, and back taxes. Get this right from the start!

Step 3: Establish Church HR Policies and Documentation

Every church should have clear HR policies to prevent confusion and protect everyone involved.

📄 Must-Have HR Documents:

• Employee Handbook (customized for churches)

• Conflict Resolution Policy

• Sexual Harassment Policy

• Disciplinary Procedures

• Child Safety & Volunteer Policies

💡 These policies set expectations, protect your staff, and demonstrate accountability to your congregation.

Step 4: Create a Healthy Culture Through Biblical HR Practices

Churches aren’t just workplaces—they’re ministries. Your HR system should reflect both legal excellence and biblical integrity.

🙏 Biblical Principles to Guide Church HR:

• Treat staff with dignity and fairness (Colossians 4:1)

• Provide for your workers (1 Timothy 5:18)

• Encourage communication and transparency (Ephesians 4:25)

STRONGChurches helps pastors set up HR systems that honor God and protect the ministry.

Step 5: Set Up Pastoral Compensation and Benefits

Pastors deserve compensation that reflects their calling, while also being compliant with tax laws.

💰 Best Practices for Compensation:

• Set up a Housing Allowance (major tax benefit!)

• Consider retirement planning options

• Establish a clear salary structure approved by a board

• Use a Compensation Agreement for full transparency

Our Pastors' Financial Abundance Package helps churches provide financially for their leaders without violating IRS rules.

Step 6: Regularly Train and Review Church Staff

Ongoing development and accountability help maintain a strong team.

📚 Staff Development Tips:

• Schedule regular performance reviews

• Provide leadership training opportunities

• Revisit HR policies annually

• Maintain confidentiality and documentation of all HR conversations

Conclusion: Build a STRONG Church from the Inside Out

Getting church HR right isn't just about avoiding lawsuits—it's about building a healthy, thriving ministry that honors God and cares for its people.

✨ STRONGChurches provides done-for-you HR systems tailored for churches so you don’t have to reinvent the wheel.

Let us help you protect your staff, avoid costly mistakes, and build a STRONG church.