Compensation

Compensation Policy 

FREQUENTLY ASKED QUESTIONS ABOUT FY2014-15 STAFF INCREASES

The board approved a salary pool increase of 3.5%. Why is the general increase given to most staff 3%?
The 3.5% pool of funds available for staff salary increases will be used for:

  • general salary increases equivalent to 3% of current base pay (for most staff), and
  • market/equity increases for a limited number of positions across the university.

 

What role does the staff senate compensation committee play in making recommendations to the university?
The staff senate compensation committee is appointed by the staff senate to draft a proposal for staff compensation for review by the senate, before being presented to the Budget Task Force for their consideration.  After the university budget has been approved by the board of trustees, the committee submits a proposal recommending the distribution of funds available for staff salary increases first to the senate for review and then to Human Resources.

This year the staff senate compensation committee proposed to Human Resources that the 3.5% staff salary increase pool be distributed in the following manner: 

  • 3.2% across-the-board salary increase
  • 0.3% for market/equity increases
  • 0.0% for performance-based merit increases.

The committee’s proposal was included in the overall proposal that Human Resources presented to the president’s cabinet. In consultation with Human Resources, the president’s cabinet sought to maximize the amount available for across-the-board increases while still attending to the most critical market/equity salary concerns. After receiving the president’s approval on how the salary increase pool will be distributed, Human Resources notified the staff senate compensation committee of the outcome and invited their questions.

 

What positions will be eligible for market/equity adjustments?
After reviewing survey data for similar positions in the labor market in which we compete for staff (regional and/or national labor market data, depending on the type of position), we identified and prioritized specific positions at Puget Sound that are currently being paid less than what would be competitive in the market. To ensure that we are able to retain staff and/or attract qualified candidates in those areas, some staff members will receive a market adjustment in addition to the 3% general increase.

Additionally, some Puget Sound positions may need adjustments based on how they are currently paid compared to other positions at Puget Sound. Examples of possible internal equity adjustments include: two individuals in comparable positions with similar amounts of experience who are currently paid differently; or two individuals in comparable positions with different amounts of experience who are currently paid the same.

 

Why aren’t we providing merit increases in 2014-15?
The cabinet agrees with feedback received from the staff senate compensation committee regarding the need for greater rigor, participation, and accountability are needed in the staff performance evaluation process, which is the foundation for merit-based adjustments.  Cabinet will work with Human Resources in the coming year to implement improvements to that process. 

 

What does it mean to be performing below expectations?
Staff members who have been or will be formally apprised of below-expected job performance may not receive the 3% general increase. This includes staff placed on notice of possible termination of employment through the performance review process, a formal performance development plan, or other form of written corrective action. Decisions about these uncommon circumstances will be made by the department head and the division cabinet member in consultation with Human Resources.

 

What is the lowest general increase that a staff member can expect?
No staff member in a regular position will receive an increase of less than 3% of his or her current base pay rate, unless a staff member has performed below expectations or was hired or promoted after March 31, 2014.

 

Does the university always grant general salary increases based on the staff member’s current base pay rate?
No. The total funding available for salary increases is recommended by each year’s Budget Task Force, considered by the president, and then forwarded to the board of trustees for approval. Because the funding and overall conditions change from year to year, the allocation plan approved by the president may change accordingly to best address circumstances and strategic objectives.

 

Do other universities typically award salary increases in this way?
Each organization chooses an approach to salary increases based on its resources, policies, and culture. Some organizations award only performance-based increases, some award across-the-board increases only, and some award flat-dollar or step increases only, while most attempt to annually balance equity, market competitiveness and meritorious performance against available resources by using some combination of these approaches. In some years, organizations are not able to offer salary increases at all.

 

How do Puget Sound’s staff salary increases compare with other employers?
Puget Sound’s 2014-15 staff increase is competitive compared with our regional peers. Of the 13 Northwest independent colleges that responded to an April 2014 survey, the median 2014-15 staff salary increase pool is 2.5% for exempt staff and 3% for non-exempt staff. Both of these figures are less than Puget Sound’s staff salary increase pool of 3.5% and less than or comparable to the 3% general increase most Puget Sound staff will receive.  Most of these institutions have increase pools ranging from 2% to 3.5%; two institutions are not offering staff increases in 2014-15; and one institution has an increase pool of 5%.  Some schools will have across-the-board increases only; some will have market, equity and/or merit adjustments; and some will use a combination of these approaches.

 

How has the cost of living changed during the last twelve months?
According to the Bureau of Labor Statistics, the average annual Consumer Price Index for all urban consumers [CPI-U] nationally was 1.47% higher during the most recent twelve-month period than during the previous twelve-month period. Comparing the same periods, the average CPI-U in the Seattle – Tacoma – Bremerton regional CPI-U increased by 1.30%.