Salary Findings April 25 th, 2011 Faculty Senate Budget Committee

Salary Findings

April 25th, 2011Faculty Senate Budget Committee

Recommendations

1. The University of Wyoming should compare UW faculty salaries by rank and discipline to a set of institutions we compete with and aspire to. – Standard comparator data includes schools that are

not relevant to our mission and aspirations.2. The University of Wyoming should redefine the

salary benchmark used in UP3 from 50th percentile to a percent of market. – Usual data is not defined by percentiles.

Background on comparisons

• OSU survey: 115 Association of Public and Land-Grant Universities and other public institutions

• To evaluate salaries UW uses – OSU average over all disciplines (at UW) vs. UW

overall average.– by discipline at UW vs. department averages.

Is OSU Data out of date?

• OSU salaries used for analysis based on 2009-2010 data.

• Likely not out of date.– Most public institutions are under wage freezes.

• Other non-OSU surveys show : – Median salary increase for public institutions: 0%

for past two years• Only new assistants at public institutions showed an

increase in 2010• Private institutions: median increase 2%

Data - Where are we? Rank Number

of FacultyNumber of

DepartmentsAverage Salary

(Average of Department

Averages)

OSU Average Salary

across UW Disciplines

UW% of Market*

Professors 213 53 $104,290 $114,021 91% (91%)Associate Professors

196 56 $75,980 $81,103 96% (94%)

Assistant Professors

172 53 $66,734 $69,293 98% (96%)

Total Faculty

581

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

Salaries to Market: Improving Over Time

Professors Associates Assistants

Source: OIA data and Annual Report on the Economic Status of the Profession

Salary Results

• By rank, UW average salaries vary with respect to market target levels– Assistants at market target (98%)– Associates near target (96%)– Full Professors above 90% (91%)

• Salary problems differ by college and discipline.

Manag

emen

t & M

arketi

ng

Accounting

Statisti

cs

Kinesiology

& Hea

lth Law

Political

Scien

ce

Communication &

Journ

alism

Family

& Consu

mer Sci

ences

Mechan

ical E

nginee

ring

Universi

ty of W

yoming*

*

Animal

Scien

ce Art

Seco

ndary Ed

ucation

Physics

& Astronomy

Geogra

phy

Modern &

Classic

al Lan

guag

es

Molecular

Biology

Plant S

ciences

Computer Sc

ience

Communication Diso

rders

Instructi

onal Te

chnology

Socio

logy

Educati

onal Stu

diesMusic

Engli

sh

Leaders

hip

Zoology

& Physi

ology

Women

's Studies

Adult Lea

rning

Researc

h

Medica

l Educati

on & Public

Health

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

Figure 1: Assistant Professor Ratio of UW Average Dept Salary to OSU Average by Discipline

UW Average 98% of OSU market

Plant S

ciences

Women

's Studies

Manag

emen

t & M

arketi

ng

Agricu

ltural

& Applie

d Economics

Statisti

cs

Civil &

Archite

ctural

Engin

eerin

g

Accounting

Atmosp

heric S

cience

Family

& Consu

mer Sci

ences

School o

f Nursi

ng

Geogra

phy

Profes

sional

Studies

School o

f Pharm

acy

American

Studies

Educati

onal Stu

dies

Modern &

Classic

al Lan

guag

es

Communication Diso

rders

Geology

& Geo

physics

Chemist

ry

Psychology

Elemen

tary &

Early

Childhood Ed

ucation

Thea

tre &

Dance

History

Mechan

ical E

nginee

ring

Physics

& Astronomy

Music

Socio

logy

Researc

h

Religio

us Studies

Finan

ce

Wyo

ming Insti

tute for D

isabiliti

es0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

Figure 2: Associate Professor Ratio of UW Average Dept Salary to OSU Average by Discipline


Medica

l Educati

on & Public

Health

Finan

ce

Psychology

Modern &

Classic

al Lan

guag

es

Accounting

Law

Anthropology

Political

Scien

ce

Profes

sional

Studies

Socio

logy

Electr

ical &

Computer En

ginee

ring

Music

Physics

& Astronomy

Kinesiology

& Hea

lth

Veterin

ary Sc

ience

Civil &

Archite

ctural

Engin

eerin

g

American

Studies

Speci

al Ed

ucation

Agricu

ltural

& Applie

d Economics

Geology

& Geo

physics

Mechan

ical E

nginee

ring

Economics

Seco

ndary Ed

ucation

Educati

onal Stu

dies

Adult Lea

rning

Chemist

ry

Mathem

atics

African

American

& Dias

pora Stu

dies

Religio

us Studies

Researc

h

Wyo

ming Insti

tute for D

isabiliti

es0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

Figure 3: Professor Ratio of UW Average Dept Salary to OSU Average by Discipline


College Results

College Average % of Market

Education 100%

Arts & Sciences 97%

Engineering 95%

Agriculture 92%

Health Sciences 91%

Business 85%

Law 82%

UW 93%

College results based on simple average of Department all-rank results. Department results use rank averages weighted by faculty number in each rank. to generate an all-rank % of market.

Compression

• Two types:– Rank-compression: when a senior rank is paid less

than a lower rank in a department.• No indication this occurring on campus systematically.• On average full professors earn 29% more than

Associates by department.• Associates on average earn 10% more than assistants

by department. – Market compression: when senior ranks are

farther from market than more junior ranks.• This exists as previously shown.

Faculty below 90% of market

Rank Number of Departments*

Number of Faculty in identified departments

Full 25 (47%) 109 (19%)

Associate 12 (21%) 36 (6%)

Assistant 4 (8%) 18 (3%)

UW reference 60 departments 581

Data based on dept. average salaries vs. OSU salary by discipline

*53 departments have assistant and full professors, 56 include associates.

Future market compression

• Currently Full professors earn 29% more than associates– As current Full Professors retire and Associates are

promoted with 10% increase, this differential will be eroded.

• Current Full Professors are paid lowest relative to market despite highest pay on campus. – This will worsen unless future Full Professors are

made closer to market upon promotion.

Recommendations

3. UW should adopt the 20% compensation increase defined in Action Item 65 for promotion from Associate to Full as soon as possible. – Current differentials between Full and associate

professor largely established with recent salary adjustments.

– These will be eroded over time given current 10% promotion policy.

Recommendations4. Future UW budget requests should seek two

separate salary adjustment pools every biennium. – The “catch-up” pool (Administrative) for

promotion, special individual and faculty market, gender inequality, and compression adjustments.

– The “keep-up” pool for increases to maintain salary purchasing power eroded by inflation, and to remain competitive with the university benchmark salary levels.

Wyoming Cost of Living

• 2Q 2010– Statewide: 1.9%– Southeast Region: 2.6%

• 2009 (average reading)– Statewide: 1.4%– Southeast Region: 1.8%

• 2008 (average reading)– Statewide: 5.3%– Southeast Region: 4.4%

Source: Wyoming Economic Analysis Division

Recommendations

5. The University of Wyoming should implement health insurance coverage to the domestic partners of UW faculty and staff beginning with the 2011-2012 academic year.– This maintains competitiveness with aspirational

comparators.

Benefits

• Our benefits are very competitive with the schools we defined as regional competitors and aspirational comparators.

• UW retirement plan equivalent to a 3% salary advantage because of low employee contribution rate required.

• Domestic partner benefit has been approved but not implemented at UW. – This benefit is commonplace among relevant public

institutions.

Diff to UW% Diff to UW

Tax Adj % Diff to UW

Tax+COL Adj % Diff to UW

Tax+COL+Ben Adj % Diff to UW

FICA % diff

Univ. of Washington $96,500 $17,600 22.3% 19.0% 12.9% 8.1%University of Utah $83,600 $4,700 6.0% -0.2% 3.5% 4.5%Univ. of Nebraska $87,300 $8,400 10.6% -0.9% 7.4% 4.3%UW $78,900 $0 0.0% 0.0% 0.0% 0.0%Colorado State Univ. $89,100 $10,200 12.9% 6.3% 2.6% -2.2% -11.9%Univ. of Arizona $89,000 $10,100 12.8% 6.3% 1.1% -2.8%Univ. of New Mexico $79,100 $200 0.3% -5.2% -5.4% -10.7%Utah State $70,800 -$8,100 -10.3% -15.7% -12.6% -11.7%Washington State $76,800 -$2,100 -2.7% -5.7% -10.6% -14.4%Univ. of Idaho $70,400 -$8,500 -10.8% -18.7% -13.7% -17.1%Univ. of Oregon $76,000 -$2,900 -3.7% -6.1% -16.1% -18.8%Oregon State $72,700 -$6,200 -7.9% -10.3% -19.9% -22.4%New Mexico State $63,100 -$15,800 -20.0% -24.7% -24.8% -29.0%

Adjustments Make a difference…

Source: OIA data and Various tax sources – author’s computations. COL = cost of living, benefits adjusted for favorable UW retirement contributions. Tax adjustments include property, income and sales taxes. Colorado State has withdrawn from Social Security.

Other Tables

Compression Dollars Needed(if all salaries below target were addressed)

Market Target (% of OSU)

Full Prof Full+30% benefits

Assoc Prof Assoc+30% benefits

Asst. Prof Asst. + 30% benefits

Total (including benefits)

100% $2,671,637 $3,473,128 $885,567 $1,151,237 $775,088 $1,007,614 $5,631,979

95% $1,736,545 $2,257,509 $410,273 $533,355 $466,106 $605,938 $3,396,802

90% $985,465 $1,281,105 $204,176 $265,429 $303,932 $395,112 $1,941,646

Based on OSU tables 2009-2010 average salaries by discipline and rank, and 2010 UW salary data

- Table computed using the difference between the OSU average and the reported average salary by rank, by department. This average difference was multiplied by the faculty in the associated department and these department totals were summed across departments whose average salaries were below the OSU target indicated.

- Assistants are dominated by three departments (Management and Marketing, Finance and Accounting) below 90%, three of which include 15 professors. Cost to adjust just these faculty would be $301,554 before benefits adjustment. The fourth department is statistics below 90% but cost to adjust the three faculty in this department is $2,378 before benefits

Faculties below 95% and 100% of market

Departments 100% of market 95% of Market 90% of Market

Number of Departments below market average

29 16 4

Number of Departments at or above market average

24 37 49

Proportion of Total below 55% 30% 8.1%

Lowest vs. Market comparator* 74% of market (1)110% of market (2)

Highest vs. Market comparator*

Number of Departments at market

4 at 100% 2 at 95% 4 at 90%

Assistant Professors data based on dept. average salaries vs. OSU salary by discipline

* Number of departments reporting this average level to market




36 26 12


20 30 45

Proportion of Total below 64% 46% 21%



Number of Departments at market 4 at 100% 1 at 95% 4 at 90%

Associate Professors data based on dept average salaries vs. OSU salary by discipline





40 35 25


13 18 28

Proportion of Total below 75% 66% 47%



Number of Departments at market 2 at 101% 1 at 95% 1 at 90%

Full Professors data based on dept average salaries vs. OSU salary by discipline


Quartile Analysis by Department

Departments Number of Faculty

Average % of market

Maximum % of market

(number of faculty)

Minimum % of market

(number of faculty)

Bottom quartile 47 77% 81% (5) 62% (1)

26%-50% 64 86% 91% (1) 81% (5)

51-75% 55 94% 99% (4) 92% (5)

Top: 76%-100% 50 108% 118% (3) 101% (10)

Full Professors data based on dept average salaries vs. OSU salary by discipline

Quartiles defined by Department % of Market



Average % of market

Maximum % of market

(number of faculty)

Minimum % of market

(number of faculty)

Bottom quartile 41 87% 90% (3) 81% (2)

26%-50% 53 92% 96% (4) 90% (3)

51-75% 63 99% 101% (1) 96% (10)

Top: 76%-100% 44 106% 118% (2) 101% (3)

Associate Professors data based on dept average salaries vs. OSU salary by discipline




Average % of market

Maximum % of market

(number of faculty)

Minimum % of market

(number of faculty)

Bottom quartile

36 88% 94% (1) 74% (8)

26%-50% 54 96% 99% (7) 94% (5)

51-75% 40 101% 103% (2) 99% (3)

Top: 76%-100% 48 106% 110% (1) 103% (3)

Assistant Professors data based on dept average salaries vs. OSU salary by discipline


Documents

Salary Findings April 25 th, 2011 Faculty Senate Budget Committee