Valdosta State University

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Valdosta State University Faculty Salary Model
April 20, 2006
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VSU FACULTY SALARY MODEL

• Objectives of Study
• Establish a statistically sound, research-based
  faculty salary model unique to VSU
• Create a transparent model that considers
  salaries across the University, Colleges, and
  disciplines
• Develop a salary database that accurately
  reflects all faculty members across all Colleges
  and departments
• Annually update the database to make appropriate
  adjustments as state allocations permit
• Constantly monitor new research and continue to
  refine the salary model as appropriate

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Research Base

• Barbezat, Debra (2003). From here to seniority
  the effect of experience and job tenure on
  faculty salaries. New Directions for
  Institutional Research, 117 (Spring) 21-49.
• Boudreau, et al (1997). Should faculty rank be
  included as a predictor variable in studies of
  gender equity in university faculty salaries?
  Research in Higher Education, 38 (3) 297-312.
• Ferber, Marianne and Loeb, Jane (2002). Issues in
  conducting an institutional salary equity study.
  New Directions for Institutional Research, 115
  (Fall) 97-115.
• Luna, Andrew (2006). Faculty Salary Equity Cases
  Combining Statistics with the Law. The Journal of
  Higher Education 77 (2) pp. 193-224 (31).
• McLaughlin, Gerald and McLaughlin, Josetta
  (2003). Conducting a salary equity study A
  consultants view. New Directions for
  Institutional Research, 117 (Spring) 97-115.
• Toutkoushian, Robert (1998). Using regression
  analysis to determine if faculty salaries are
  overly compressed. Research in Higher Education,
  39 (1) 87-101.

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VSU FACULTY SALARY MODEL

• Three Dimensional Model
• How do faculty salaries at VSU compare externally
  based on mean (average) salaries at peer
  institutions?
• How do faculty salaries at VSU compare
  internally?
• How do salaries of recent hires compare with
  those of more senior faculty at VSU?

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Source Valdosta State University IPEDS census
file, November 1, 2005
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Component 1 External Market

• How do faculty salaries at VSU compare
  externally based on mean salaries at peer
  institutions?

• Purpose Relate VSU salaries to external market
• Mean salaries for 2005-06 reported to CUPA-HR
  from comparable institutions nationwide
• Academic rank and discipline

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What Comparison Institutions Are Used?

• Masters I public, non-collective bargaining
  (103 institutions)
• Includes 7 of the designated Board of Regents
  Peer Institutions
• Arkansas State University
• Central Missouri State University
• Eastern Kentucky University
• Jacksonville State University (AL)
• Stephen F. Austin State University
• University of Central Arkansas
• University of North Carolina Wilmington
• Includes 6 Georgia Institutions
• Augusta State University Georgia Southwestern
  Univ.
• Columbus State University Kennesaw State
  University
• Georgia College University of West Georgia
• Advantage of a broad group

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Component 1 External Market

• How do faculty salaries at VSU compare
  externally based on mean salaries at peer
  institutions?

• Purpose Relate VSU salaries to external market
• Mean salaries for 2005-06 reported to CUPA-HR
  from comparable institutions nationwide
• Academic rank and discipline
• Is each VSU faculty member at, above or below the
  CUPA-HR mean (or 100) based on 1/1/06 salary?
• Identify the range of salaries (72 to 136)
• Result Dollar amount needed for each faculty
  member to reach 100 of the CUPA-HR mean

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Component 2 Internal Equity

• How do faculty salaries at VSU compare
  internally?

• Purpose Using factors that normally predict
  salary, examine salaries that fall outside the
  expected range
• Salary Predictors (based on research)
• Academic rank
• Discipline
• Years of service at VSU
• Highest degree earned
• Tenure status
• Is each faculty members salary within an
  expected range based on these predictors?
• If salary is low, identified for further review
• Result Dollar amount needed to reach the
  expected range

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Component 3 Compression

• How do salaries of recent hires compare with
  those of more senior faculty at VSU?

• Purpose Examine salaries of more senior faculty
  that fall below an expected range
• Compression Predictors (applied research)
• CUPA-HR mean salary (rank and discipline)
• Years of service at VSU
• Highest degree earned
• Tenure status
• College
• University experience prior to VSU
• Administrative experience at VSU
• VSU- and College-wide Do these factors predict
  salaries of recent hires and more senior faculty
  equally well?
• If salary is low, identified for further review

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VSU FACULTY SALARY MODEL

• How do these three components work together?

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Hypothetical Case 1

• Professor of Political Science
• Holds the Ph.D.
• Has served at VSU for 15 years
• Tenured
• No prior years of university experience
• No administrative service
• Salary as of January 1, 2006 52,500

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Hypothetical Case 1

• Professor
• Salary 52,500
• External Market
• CUPA-HR Mean Salary 70,817
• 74 of Mean
• to reach 100 18,317
• to reach 95 14,776
• to reach 90 11,235
• to reach 85 7,695
• Internal Equity
• Low 2,463 below the expected range
• 3. Compression
• Low Below expected range compared with other
  more senior faculty

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Three Component Analysis

• What does the model mean to this Professor?
• Step 1 External Market
• Adjust salary by 11,235 to reach 90 of
  CUPA-HR mean (Note 90 is used in this case
  for hypothetical, discussion purposes only.)
• Step 2 Internal Equity
• Does Step 1 bring the salary inside the
  expected range?
• Yes, the internal equity is addressed.
• No, further adjustment is indicated.
• Step 3 Compression
• Rerun compression study after all other
  faculty are adjusted based on Steps 1 and 2.

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Hypothetical Case 2

• Assistant Professor of Communication Arts
• Holds the Ph.D.
• Has served at VSU for 4 years
• Tenure-track
• Worked in journalism for 10 years prior to VSU
• No prior years of university experience
• No administrative service
• Salary as of January 1, 2006 51,100

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Hypothetical Case 2

• Assistant Professor
• Salary 51,100
• Step 1 External Market
• CUPA-HR Mean Salary 45,630
• 112 of Mean
• to reach 100 NA
• to reach 95 NA
• to reach 90 NA
• to reach 85 NA
• Step 2 Internal Equity
• High Substantially above the expected
  range
• Step 3 Compression
• High Above the expected range

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Three Component Analysis

• What does the model mean to this Asst. Prof.?
• External Market
• Above the CUPA-HR mean. Will be monitored
  annually and adjusted upward as appropriate,
  funds permitting.
• Internal Equity
• Currently well above the expected range.
• Continue to monitor.
• Compression
• Rerun compression study after all other faculty
  are adjusted based on Steps 1 and 2.

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Hypothetical Case 3

• Associate Professor of Mathematics
• Holds the Ph.D.
• Has served at VSU for 9 years
• Tenured
• Worked at a state college for 2 years prior to
  VSU
• No administrative service
• Salary as of January 1, 2006 54,100

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Hypothetical Case 3

• Associate Professor
• Salary 54,100
• Step 1 External Market
• CUPA-HR Mean Salary 56,215
• 96 of Mean
• to reach 100 2,115
• to reach 95 NA
• to reach 90 NA
• to reach 85 NA
• Step 2 Internal Equity
• Falls well inside the expected range
• Step 3 Compression
• Falls inside the expected range

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Three Component Analysis

• What does the model mean to this Assoc. Prof.?
• External Market
• Above 95 of CUPA-HR mean. Will be monitored
  annually and adjusted upward as appropriate,
  funds permitting.
• Internal Equity
• Currently falls within the expected range.
• Continue to monitor.
• Compression
• Rerun compression study after all other faculty
  are adjusted based on Steps 1 and 2.

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Model Summary Report for Individual Faculty
Members
90 is used in this case for hypothetical,
discussion purposes only.
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Model Summary Report for Individual Faculty
Members
90 is used in this case for hypothetical,
discussion purposes only.
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Model Summary Report for Individual Faculty
Members
90 is used in this case for hypothetical,
discussion purposes only.
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Action Steps

• Your constructive feedback by Tuesday, April 25
• Follow-up meeting with Deans, Department Heads,
  Vice President, and President
• Distribute confidential personalized data
• Identify budgeted amount for salary adjustments
• Phasing of adjustments
• First, address external market and internal
  equity issues based on January 1, 2006 salary
• Then, re-run the compression analysis and address
  if needed