Board sends message with salary hikes

Staff Report

At its October meeting, members of the University’s Board of Visitors talked about the board’s commitment to invest in the University’s key asset — its people. Following that discussion, the board voted to earmark funds from interest on the endowment for classified staff salary adjustments.

Thomas E. Gausvik, U.Va. chief human resource officer, said this is the first time the board has taken such an action and called it “an extraordinary investment.”
While the state has authorized its first salary increase for classified employees in three years — 2.25 percent to go into effect next month — the board wanted to send a strong message to employees that it values their work.

Medical Center to implement pay increases U.Va. Medical Center employees also will receive a base-pay increase of 2.25 percent for “commendable” performance and higher percentages for “peak” and “outstanding” performance, R. Edward Howell, vice president and chief executive officer, announced in an Oct. 10 memo to Medical Center employees. The increases will be effective Jan. 18, 2004. “Although we continue to face market challenges, our success this past year has positioned us to build sustained excellence in the coming years,” Howell said. “The ability to reinstate performance-based compensation beyond a one-time bonus will have a significant impact on the retention of the talented employees we enjoy today.”

As a result, the board approved the creation of two pools of funds totaling $450,000 plus benefits to accomplish two goals. One pool of $250,000 was designated to address market inequities in classified salaries, while the second of $200,000 was designated to fund one-time bonuses for outstanding performance. The board’s intent is to fund this second pool on an annual basis.

Human Resources already has begun a University-wide review of classified salaries, Gausvik said, paying special attention to areas in which salaries are not competitive with the relevant labor market and where there has been significant turnover and difficulty in retaining and recruiting classified staff. Once this is completed, his staff will make recommendations to senior management, and adjustments will be implemented within this fiscal year.

In 2000, when the state modified its classified pay system to include a pay-for-performance plan, it was unable to fund either the new pay practice or the new rewards and recognition program. At U.Va., senior vice presidential areas have worked to keep the initiatives funded at departmental levels.

Over the past three years, 1,892 in-band salary adjustments have been awarded to classified staff in the amount of $6,038,000 including fringe benefits. The average salary increase for each in-band adjustment has been $2,298.

Of the total in-band salary adjustments, 67 percent have gone to classified staff in the first three pay bands. In addition, there have been 1,261 classified promotions, voluntary transfers and role changes for another $3,847,071 including fringe benefits.