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Fact Sheet on Competitive Compensation

 




 

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Additional Resources:

• President Casteen's Statement on Competitive Compensation

 

What is the University’s minimum hiring rate?
Effective 11/25/07, the rate is $10.14 per hour for University classified salaried and classified wage employees in the academic division (including UVaTEMPS) and for all Medical Center employees. This rate is increased periodically based on U.Va.’s examination of current wage market data for the Charlottesville area.

How does U.Va.’s rate compare with other pay rates?
U.Va.’s rate of $10.14 per hour exceeds the federal minimum wage ($6.55) by 55 percent and the minimum hiring rate for state classified employees ($7.39) by 37 percent.

What fringe benefits are included in the University’s compensation package?
The University’s generous benefits package, including health insurance and retirement benefits, adds another $3.91 per hour to the $10.14 rate, which translates to an additional $8,133.00 a year. That means the lowest paid employee at the University receives $14.05 per hour in total compensation. Almost half of this benefits package is health insurance. Individuals without employer health insurance could pay much more per month for comparable coverage, according to national surveys.

What are some of the other benefits that employees receive?
The University offers educational benefits to its employees, including tuition remission and reimbursement. In addition, employees have the option of participating in supplemental retirement accounts (403b) for which the University matches 50 percent of the employee’s investment up to $40 a month.

How does the University set its pay rate?
The University compensates its employees at competitive market rates of pay. In most years, rates of increase are indexed directly to the section of the state budget that determines the rate of increase for state classified employees. In addition, U.Va. participates in or purchases market salary surveys periodically in order to identify disparities and to make necessary adjustments.

Where does the funding for salaries and wages come from?
Depending on the area in which the employee works, funding comes from various sources including student fees, patient revenues and General Fund appropriations from the state. For the past five years and going forward, U.Va.’s Board of Visitors has allocated $250,000 each year in addition to funds from the state for strategic base-salary adjustments for classified employees.

Does the University offer employees bonuses or other rewards?
Individual departments funded Rewards and Recognition bonuses (including both monetary bonuses and paid days off) for superior performers. In addition, U.Va.’s Board of Visitors has provided $200,000 from tuition increases to fund bonuses under the state Reward and Recognition Plan.

What is the turnover rate for employees at the University?
For the most recent fiscal year July 1, 2007 through June 30, 2008, turnover was down to 8.7 percent, while the industry standard for turnover approximates 11 percent.

What role does the University have in setting compensation for contract employees?
The University, as a state agency, does not have the legal authority to impose its will on private vendors and contractors in their setting of wage rates for their employees. Over time, some contractors have adopted U.Va.’s wage rules. Others have not, but none has done so because U.Va. determined what they must pay.

Can the University do anything to change that policy?
U.Va. has been advised by legal counsel that only new legislation would allow the University to dictate contractors’ salary policies. In March 2006, U.Va. officials requested the Attorney General’s advice on two questions: (1) could the University have the authority to require contractors to pay their employees wages that reflect a sum that U.Va. sets, and (2) what differences are there between the University’s ability to dictate contractors’ wage rates and the ability of three localities that claim to have set such rates for their contractors? An advisory letter received on March 21 and made public in early April stated that the University does not have authority to determine the wages paid to employees of contractors. For a copy of that letter (pdf format), click here.

Does the proposal for Promotions negate the use of the " 15%" rule for those staff being promoted to a one step up job?
For University Staff, there will be no 15% cap on promotions.

Whose data will be used for determining exterior market pay? if the same data base is used that is currently used in PA7 then nearly half of FM employees would get a raise- I don't think so- will the starting pay be at say 80% of minimum exterior market? How often will data be updated- yearly- five years etc? How are you going to ensure the data is accurate as so many PA7 IBAs currently can not be process because of obvious errors in external market data (why were roofers excluded?- obviously there are roofers in this area) How are you going to respond to filings for release of information for the market data?
Data is updated yearly. No, starting pay will not be at the 80% minimum exterior market. Current staff market match process will address the accuracy of the market data and matches. The process for bringing employees' salaries to market will be a gradual process, supported by local and university level funding. Funding for most salary adjustments will continue to come from the state allocation. However, for University Staff, annual funding for salaries is set by the Board of Visitors as part of the budget process. The University may now request funding for University Staff salary increases through the Board of Visitors, as we have done for faculty. (taken from FAQ's on Restructuring website)

Will there be different levels of compensation for the career path. For example, if you take courses related to your job does this give you an opportunity for advancement. Will each level be clearly defined as to what you need to do to attain that level.
1) The career paths are informational, and are designed to provide employees with guidance as you develop your own career plans. Compensation under restructuring will be tied to the market range for the work that you perform. You may also be compensated for your performance, and for the acquisition and application of new skills. 2) Each positions' salary range is determined by the market matches. When an employee changes career paths, this does not automatically guarantee a raise. The career paths represent guides to the 75 most common careers across the University. Individuals will be able to develop customized career paths based on their current position, their career aspirations, or both. One of the benefits of the career paths is that they identify competencies that are common across career paths. This provides employees with information to match their skills with multiple careers. (taken from FAQ's)

Given how broad the basic pay bands are, how will general professional faculty be "slotted in" to the new system? Do we just move over with our current salaries, or will there be adjustments imposed?
The new system will be based on market-relevant ranges for each position. Classified staff and A&P faculty positions are currently being matched to market ranges. This will provide information on where current salaries are relative to the market for similar positions. No automatic salary adjustments will be imposed.

Establish in policy who has the authority to change any new practices- is it the BOV, the President, or a VP? If not the employees will be at the mercy of any changes in management and without some sort of bargaining power. Do you plan to establish what the minimum pay raise for each level of achievement is (barring a state or national emergency) so that it cannot be changed each and every year by some management group?
Authority over the University Staff system rests with the BOV or its designee. Merit increase guidelines will be established annually, and approved by the BOV.

What if our education/experience level deserves more than market value because the other positions might have someone with a Bachelors in the position, but UVA has someone with a PhD? Will that impact the salary?
Educational qualifications are not the only criteria taken into consideration when hiring new employees. Department/local level discretion is applied in determining compensation for those who have education credentials above the minimum required for the position.

Will a new employee coming in with the same credentials as myself but without the five years of service I've already put in at UVA make the same amount of money?
Starting pay for new employees will be determined by several factors, including pay rates of existing staff. Salary ranges determined by market matches are tied to each position. Bonus opportunities are available in the new system to reward employees for acquisition of new skills, as well as for exceptional contributions. Base salary adjustments (promotions) are also available when new skills are applied and when there are significant changes in job duties.

Who gets a raise first, a staff person or a University person?
No priority will be given to one group over the other when sequencing salary increases; however, for Classified staff, annual increases will continue to occur on the timeline determined by the Commonwealth's Budget and the State Department of Human Resources. The University need not adhere to that schedule for University staff.

As a staff person, will I get my state approved raise or is it now up to the department?
Classified Staff members will continue to receive their state allocated raise annually. In addition to market-based salary adjustments (market survey data is updated on a quarterly basis), University staff members will be eligible for bonuses and base pay adjustments throughout the year, based on performance and the acquisition and application of new skills.

It is unclear to me how a change to a market-based compensation would affect my current salary. Could it potentially drop, or will my current salary be used as the baseline?
Current salary will be used as a baseline. No employees' base salary will drop as a result of the availability of market-based compensation data.

Are there going to be limits on how much of a raise an employee can get at one time (for example the 10% limit on in-band adjustments or the 15% limit on moving into a new position with a new payband)?
For University Staff, there will be no caps on adjustments or promotions.

With the State-administered compensation system I usually receive at least a small raise. What happens when U.Va. determines it doesn't have enough resources to give salary increases?
Restructuring gives the University greater flexibility in Finance as well. Our increased flexibility there makes it extremely unlikely that the State would have resources, but not the University.

What market are we being compared to? Industry? Other universities?
The University relies on a number of market survey tools covering both the higher education market as well as the private sector. We use local, regional and national survey sources depending on where we recruit for positions. Local market data is only used where the local market ranges are higher than regional or national ranges.

Where is the money coming from to bring everyone to market value?
The process for bringing employees to market will be a gradual process, supported by local and university level funding. Funding for most salary adjustments will continue to come from the state allocation. However, for University Staff, annual funding for salaries is set by the Board of Visitors as part of the budget process. The University may now request funding for University Staff salary increases through the Board of Visitors, as we have done for faculty.

How frequently can an employee get a raise?
Employees are eligible for annual merit increases. Additional increases (both in base salary and one time bonuses) are possible during the year for a variety of reasons, including employee development, changes in responsibilities, and others.

Currently to get an in-band pay adjustment you have to modify your EWP and add tasks to your position. Will this remain the same in the new system? How many extra tasks, if any, are going to need to be added on in order to get a new raise.
EWPs will be eliminated in the new system. Opportunities for pay adjustments include employee development, performance, changes in job responsibilities, unit goal achievement, and others. (taken from FAQ's). Documentation involved in these adjustments has not been developed yet.

As a staff person, will I get my state-approved raise or is it now up to the department?
For Classified staff, across-the-board annual increases will continue to be determined by the Commonwealth's Budget. For University Staff, annual funding for salaries will set by the Board of Visitors as part of the budget process. The University may now request additional funding for University Staff salary increases through the Board of Visitors, as we have done for faculty. The University will also establish annual guidelines for merit increases, based on employee performance. Schools and units will use these guidelines to determine individual increases. Additional increases (both in base salary and one time bonuses) are possible during the year for a variety of reasons, including employee development, changes in responsibilities, and others.

What happens if market range shows their department is paid over market range?
Unlike the Classified pay bands, market ranges are not firm limits. Salaries will not be reduced or capped as a result of the transition to University Staff.

Do employees keep the same salary if they change over?
Yes, employees keep their current salaries. No one's salary automatically changes as a result of converting to the new system.

Will departments have to give employees at least what the Governor gives?
For Classified staff, across-the-board annual increases will continue to be determined by the Commonwealth's Budget. For University Staff, annual funding for salaries will set by the Board of Visitors as part of the budget process. The University may now request additional funding for University Staff salary increases through the Board of Visitors, as we have done for faculty. The University will establish annual guidelines for merit increases, based on employee performance. Schools and units will use these guidelines to determine individual increases. Additional increases (both in base salary and one time bonuses) are possible during the year for a variety of reasons, including employee development, changes in responsibilities, and others.

What happens once new capabilities are attained? Is there a raise that goes with the acquisition of new skills? Once you've acquired the skills to move up along the career path will there be a clear progression available to the employee? What about the market-based compensation since UVA frequently sets the market value in the Charlottesville area - particularly those outside of the IT arena? Is someone free to jump from one career cluster to another with the appropriate training? - say I have some experience with database administration in my current development job, can I take some classes to translate that to the IT career cluster? When will the other career clusters be available to review?
Compensation under the new system rewards both the acquisition and application of new capabilities. Multiple market surveys, including local, regional and national, are being used to develop the market ranges. Employees are ultimately responsible for making their own career choices, with the support and assistance of their supervisors and UHR Career Services. If you identify a another career path as a career goal, you are free to develop a career plan that will result in transitioning to that path.

 
 
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Last Modified: Wednesday, 10-May-2006 10:15:58 EDT
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