|
A look at salary pool, adjustments and equity increases
As part of President
Simmons’ Initiatives for Academic Enrichment, plans for the next three
years include allocating $2 million to increase staff salaries and improve
selected benefits for faculty and staff beyond what would normally be available
through the regular budget process. As a result of this initiative, the staff
salary pool for the next fiscal year (for raises to be distributed this July)
will total 5 percent, a full percentage point higher than in recent years. An
enhanced TAP benefit, changes in the health care sliding scale and this year's
bonus program are also part of the improvements.
“The president's plan for academic
enrichment recognizes that staff will play a key role in the success
of Brown's efforts to implement academic initiatives,” said Walter
Hunter, vice president of administration. “The University is considered a
good employer, but we can and should be one of the best in higher education. We
want the University to provide fair and equitable compensation, to treat all
employees with dignity and respect, and to foster a positive and collaborative
work environment, all of which will enable Brown to attract the best and
brightest staff available.”
GSJ writer Kristen Cole queried
Hunter about the salary pool increase.
Which employees are covered under the salary pool that has
been increased to 5 percent?
All staff on the regular payroll not covered by collective
bargaining agreements.
What does it mean that the salary pool has increased to 5
percent? Five percent of what?
The FY 02 salary budget – the amount budgeted last
year for salaries – is the starting point for determining how much the
salaries will increase for FY 03. So, it is 5 percent of last year’s
salary budget.
Please describe the term “salary pool.”
It is the pool of money that managers use to fund salary
increases – merit increases and equity increases. This year, 1 percent of
the total salary pool is being centrally allocated to fund the directed
adjustment.
Who gets the directed adjustments and what is a directed
adjustment?
All regular, non-union staff earning less than $20 per hour
will receive the directed adjustments. A directed adjustment is an increase to
preserve the relative rates of pay as a result of the University decision to
raise the minimum rate of pay from $9 to $10 effective July 1, 2002. When the
minimum salary gets raised, staff whose salaries are above the minimum also
need to go up to maintain the relative distance between rates of pay. A job
that pays $10 requires higher skills and experience than a job paying $9. So,
to preserve the relative rates of pay that recognize these different skills,
responsibilities and experience, we calculated graduated increases to rates of
pay for staff earning less than $20 per hour. As pay rates increase from $9 to
$19.99, the amount of the directed adjustment decreases.
How did the University determine who would receive a
directed adjustment?
The decision to raise the minimum rate of pay from $9 to $10
would have “compressed” salaries if these adjustments were not
made. The decision to cap the directed adjustments at $20 per hour was based on
our analysis of salary survey data indicating that Brown’s competitive
position in terms of pay was of greatest concern for jobs paying less than $20.
Is this a one-time change?
Yes
What is an equity increase?
An equity increase is granted when pay is low in comparison
to rates of pay for jobs with comparable responsibilities, qualifications and
experience. Internal equity looks at rates of pay within Brown. External equity
looks at pay in the labor market where we compete for candidates.
How does a directed adjustment differ from an equity
increase?
The directed adjustment raised our pay scale for all jobs
paying less than $20. Equity increases are determined based on an individual
staff member’s rate of pay compared to pay data for jobs requiring
similar qualifications. The concept is very similar – both adjust pay to
be more competitive.
As an employee of the University, should I expect my check
to increase by 5 percent in July?
Not necessarily. Your salary increase depends on several
conditions:
• Your current rate of pay – if you are earning
less than $20, you will receive between a directed adjustment that could be as
high as $1,950 (11.1 percent) or as little as $200 (.05 percent).
• Your performance – the merit increase
guidelines are tied to the overall performance rating. Here are the FY 02-03
guidelines:
Exceptional - 4 percent or greater
Commendable - 3 to 4 percent
Fully competent - 2.75 to 3.75 percent
Needs improvement - up to 1.5 percent
Unacceptable, nothing
• Your rate of pay vs. others with similar
responsibilities, experience and qualifications – if your current rate of
pay is not comparable to others with similar responsibilities, experience and
qualifications, you may be considered for an equity increase. However, all
these increases are funded by the 5 percent salary pool, so funds available for
equity are limited.
|
