Despite tough economy, Brown increases salaries, benefits for over 90 percent of faculty, staff

Although a struggling economy has prompted layoff programs and salary cuts at many colleges and universities across the country, Brown finds itself in a much better position than many institutions. In fiscal year 2003-04, which began July 1, the University will provide raises to more than 90 percent of all employees while continuing to finance the Initiatives for Academic Enrichment, critical to Brown’s long-term success as a world-class institution.

But salaries are only part of a University employee’s total compensation. “Even if your salary does not increase, the University’s contributions to your benefits will,” said Beppie Huidekoper, executive vice president for finance and administration. Brown’s contributions to health insurance, for instance, will rise an average of 12 percent per person, she said.

How does Brown calculate total compensation for a fulltime nonunion employee? The University begins by combining an employee’s base salary with Brown’s contributions toward health insurance and retirement, and paid time off. Using this formula, the total compensation package for a full-time employee who earns $25,000 a year totals $42,825. That includes base salary, up to $11,500 contributed toward health insurance, $2,000 contributed toward retirement, and $4,325 for paid time off (11 paid holidays, 12 sick days, and 22 vacation days each year). When Brown’s other benefits are added, the number rises.

(For examples of total compensation packages, please see Human Resources' .pdf.)

Brown continues to be a leading employer in the area, according to Roberta Gordon, assistant vice president for human resources. “We continue to focus our attention on the strong competitiveness of our pay, benefits and working environment. With escalating health insurance costs and benefits premiums, we have worked hard to continuously re-evaluate ways to keep costs down, maximize our benefits, and preserve the comprehensiveness of our offerings.”

The budget for the new fiscal year provides increases of $2.4 million for faculty salaries and benefits, $2 million for staff compensation, and $700,000 for the Tuition Aid Program (TAP). Faculty salary increases are higher than those provided for staff because faculty salaries continue to lag behind the market more than staff salaries.

Market concerns play a role in staff salaries as well. A recent Human Resources study showed that salaries for nonunion support staff and lower-level professional positions were slightly lower relative to salaries paid in the local marketplace, while salaries for managerial and mid-level and above professional positions were generally at or above salaries paid in the regional marketplace. Therefore, to maximize the distribution of limited resources and to target the dollars where the greatest need exists, salary increases of $900 will be distributed this fiscal year to staff earning less than $75,000. Those making $75,000 or more will have their salaries frozen. (For more detail, please see Human Resources' online information.)

If the economic picture for Brown and the nation improve soon, the salary freeze will be reexamined in January, said Walter Hunter, vice president of administration.

Hunter also noted that in addition to providing raises for the majority of Brown employees, the University continues to offer a wide range of benefits, such as:

• “uniquely generous” time-off benefits, including vacation, holiday, sick time and, again this year, summer hours and winter break;

• a dental assistance plan through Delta Dental of R.I.;

• a generous tuition assistance plan for college-age dependents of employees, and a separate education assistance plan available to employees through an employee education program;

• fully paid basic group term life insurance, plus options to enroll in voluntary, spousal and dependent group term life;

• “generous” contributions to employee retirement plans;

• comprehensive health insurance;

• the Brown Flex Plan, which allows the use of pre-tax dollars to pay for medical and dental monthly premium contributions;

• flexible spending accounts, which allow for pre-tax dollars to pay for medical and/or dependent care expenses;

• long-term disability insurance, which is fully paid by Brown. This coverage provides incomes if, due to disability, an employee incurs a loss of earnings for six months or longer;

• business travel accident insurance, fully paid for by Brown. This covers faculty and staff while on University-required travel;

• affordable child care centers (Taft Avenue and Brown/Fox Point);

• a fully paid Faculty/Staff Assistance Program, which helps employees address personal issues, and elder or childcare needs;

• access to a wide variety of cultural, educational and fitness programs that are free or low-cost.

“Despite numerous pressures, the spirit of cooperation at Brown over the past year has been extraordinary,” Hunter said. “People at all levels in the University are working harder to make Brown a stronger, more efficient place.”

Comments from employees

The wide range of benefits offered by the University is particularly noteworthy to employees who worked elsewhere before coming to Brown.

For example, Kurt Teichert, coordinator of Brown is Green, previously worked for a small nonprofit, and then as an independent consultant and contractor. The University’s compensation package “far exceeds what I received in those scenarios,” he said. “As an independent consultant, I was able to bring in more cash, but the benefits were relatively nonexistent.”

That said, Teichert noted that “the biggest benefit I derive from Brown is the opportunity to work with the students here.” He added, however, that “I do not take for granted the total value of the benefits package, and since my son is entering college next year… I’m particularly thankful for the TAP.”

Glen Peck agrees, calling Brown’s benefits “fantastic” compared to those he received as a manager of a small business and manager of a construction firm. Peck, who not only is the computing coordinator for the Education Department but also a student in the Resumed Undergraduate Education program, said he sought employment at Brown specifically so that he could take advantage of the Employee Education Program.

Bill Wood, a manager in the University Library and chairman of the President’s Staff Advisory Committee, praised the University’s decision to increase faculty and staff compensation. “Given what is going on in other places and the hard financial times we are going through, the senior administration has made every effort to help staff out as much as possible,” he said. By focusing on the academic initiatives, the administration “is keeping the University on track for what must be done to advance Brown in the coming 10 to 15 years,” he said.

Employees with compensation questions may contact Betsy Warner at 863-1792. Employees with benefits questions may contact Drew Murphy at 863-1244.