UNIVERSITY OF PITTSBURGH POLICY 07-09-01

CATEGORY:              PERSONNEL

SECTION:                  Salary Administration

SUBJECT:                 Salary Increase

EFFECTIVE DATE:   September 16, 1994a

PAGE(S):                   4

      The University's total annual expenditure for compensation is a complex function of a

      number of factors, including the number of faculty and staff; the relative number of faculty

      and staff of different ranks or classifications, years of service, and status (e.g., full-time

      and part-time); fringe benefit rates; and the size of annual salary increases.

      Salaries at the time of initial hire are determined primarily by market factors.  What follows

      is a set of policy recommendations to provide a framework governing annual salary

      increases for faculty and staff, to be applied within the Planning and Budgeting System

      (PBS).

      These recommendations provide some flexibility for particular units, within the context of

      policy decisions made centrally.  The size of the total pool of funds for increases and the

      allocation of funds to particular responsibility centers are centrally determined.  The

      distribution of funds to individuals within each unit, however, is to a significant degree left

      to local determination.

I.    THE ANNUAL POOL OF FUNDS FOR SALARY INCREASES

      Because faculty and staff are the University's most important resource, funding for

      compensation must receive a very high priority in the University's planning and budgeting. 

      To assure competitiveness in attracting and retaining qualified and productive faculty, the

      University has set a goal of ensuring that average faculty salaries at the Pittsburgh campus

      are at or above the median (for each rank) of AAU universities; related goals have been

      established for faculty at the regional campuses and for faculty librarians.  The Staff

      Classification and Pay Plan establishes salary ranges aimed at maintaining competitiveness

      in attracting and retaining qualified and productive staff.

      The size of the total pool of funds for salary increases is determined as part of the annual

      operating budget by the Chancellor, with the active participation of the University Planning

      and Budgeting Committee (UPBC), and subject to approval by the Board of Trustees.

      The total pool for salary increases has the following four components: 1) maintenance of

      real salary; 2) merit increases; 3) equity adjustments; and 4) market adjustments.

      The portion of the total pool devoted to each of the four components is determined by the

      Chancellor, with the active participation of the UPBC, in response to needs for each

      purpose identified through the planning and budgeting system.  The size of the total pool

      for increases should be sufficiently large to provide adequate funds for all four purposes.

II.   ALLOCATION OF SALARY INCREASE FUNDS TO RESPONSIBILITY CENTERS 

      Funds for salary increases are allocated to responsibility centers on a uniform percentage

      basis for maintenance of real salary and for merit, and differentially for equity and market

      increases, based on demonstrated needs, documented in accordance with procedures

      established within the planning and budgeting system.

      Maintenance of Real Salary

      1.   Each unit will be allocated funds from the total pool to ensure the maintenance of real

            salary of each faculty or staff member performing satisfactorily.

      2.   The amount for maintenance of real salary allocated to each unit will be equal to the

            salaries of all faculty and staff in that unit times the percentage of the previous calendar

            year's increase in the Consumer Price Index (CPI-W).  Any modification of this

            percentage must be determined by the Chancellor, with the active participation of the

            UPBC.

      Merit

      1.   Each unit will be allocated funds from the merit component of the total pool, to assure

            that every faculty or staff member whose performance is judged meritorious receives a

            merit increase in salary.

      2.   The amount for merit increases allocated to each unit will be a set percentage (the

            same for all units) times the salaries of all faculty and staff in that unit.  The percentage

            is determined by the Chancellor, with the active participation of the UPBC

      Equity

      1.   A systematic analysis should be undertaken to determine where and to what extent

            salary inequities exist (such as salary compression or differentials attributable solely

            to gender, race, or other inappropriate factors), and funds should be allocated each

            year to units where inequities are documented until they are removed.

      2.   Funds for equity adjustments to specific units are allocated by the Chancellor, with the

            active participation of the UPBC, in response to needs identified through the systematic

            analysis described above.

      Market

      1.   Funds from the market component of the total pool are allocated to specific units by

            the Chancellor, with the active participation of the UPBC, on the basis of documented

            needs.  Consideration might be given, for example, to school and departmental

            rankings in national salary profiles and to shifts in relative rankings of staff salaries in

            income profiles for various professional and technical personnel, both in Pittsburgh

            and in higher education generally.

      2.   A portion of the market component of the total pool will be placed in reserve for

            discretionary use by the Provost or the appropriate senior vice chancellor, to retain

            individual faculty and staff.

III.  DISTRIBUTION OF SALARY INCREASES TO INDIVIDUALS WITHIN UNITS

      The salary increase received by each individual will become part of his or her base

      contract salary in subsequent years.

      Maintenance of Real Salary

      1.   Each faculty or staff member performing satisfactorily will receive a percentage

            increase of the size determined for that year for maintenance of real salary.

      2.   For faculty, satisfactory performance is defined as having fulfilled the "common

            responsibilities" of faculty as articulated in the 1988 Handbook for Faculty: The role of

            individual faculty members in supporting the mission of the University will depend on the

            specific missions of their departments or schools.  All faculty members, however, have

            certain common responsibilities:  to commit themselves fully to their teaching obligations,

            to meet all of their classes as scheduled, to be available during specified office hours

            for consultation with students, to evaluate student performance promptly and fairly, to

            participate in the development of the programs of their departments and schools and

            of the University as a whole, to engage in scholarly activities, and, as appropriate, to

            support the University in its goal to render public service. (p. 42)

            Criteria for satisfactory performance may be further specified for particular units, as

            jointly determined by the faculty and the head of the unit through collegial processes

      3.   For staff, satisfactory performance is defined as an Overall Rating of "Meets

            standards" on the Staff Performance Appraisal, indicating:  "Work is fully satisfactory;

            employee consistently meets and occasionally may exceed performance standards."

      Merit 

      1.   For faculty, judgments of relative merit within a department or school should be made

            in accordance with explicit, written criteria and procedures determined jointly by the

            faculty and the head of the unit.  Criteria should reflect the specific mission of the unit,

            and should recognize performance of high quality in teaching and service as well as

            in scholarship or research.

      2.   For staff, meritorious performance is defined as an Overall Rating of "Often" or

            "Consistently" "Beyond Standards," indicating:  "Work performance often or

            consistently exceeds performance standards." 

      3.   A responsibility center may decide that promotion should be accompanied by a related

            increase in salary, in addition to any other merit increase awarded in the year of

            promotion.  Each responsibility center must have explicit written policies regarding

            promotion increases for faculty and staff.

      Equity

      1.   Funds allocated to a unit for reasons of equity must be distributed among individuals in

            such a way as to address appropriately the inequities identified.

      Market

      1.   Funds allocated to a unit for market considerations are distributed among individuals

            at the discretion of the head of the unit.

 IV. NOTIFICATION OF SALARY INCREASES

      At the time of notification of salary for the coming year, each continuing faculty or staff

      member will be informed in writing of the basis for his or her individual salary increase. 

      Persons whose performance has been judged unsatisfactory must be informed of the

      specific reasons for that judgment.

V.   RECONSIDERATION OF SALARY DECISIONS 

      Procedures should be developed within each responsibility center through which individual

      faculty and staff members can request reconsideration of decisions related to aspects of

      their salaries

VI.  SCOPE 

      This policy applies to contract salaries of all full-time faculty and part-time tenure-stream

      and tenured faculty, including faculty librarians, except for those in the School of Medicine,

      and to all regular full-time and part-time staff not covered by collective bargaining

      agreements.  It does not include summer-term or overload payments paid to full-time

      faculty, or salaries of part-time non-tenure-stream faculty or part-time faculty librarians.

VII. OVERSIGHT 

      The Senate Budget Policies Committee and the Staff Association Council, in consultation

      with the Provost and the appropriate senior vice chancellor, will monitor the implementation

      of this policy and report on that implementation annually to the University Senate and the

      Staff Association Council.