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Salary Adjustment Guidelines, Academic

August 4, 2014

TO: Deans, Directors and Chairpersons

FROM: June Youatt, Provost

SUBJECT: Academic Human Resources Salary Adjustment Guidelines – 2014-15

The MSU Board of Trustees approved salary increases for non-union faculty and academic staff of 2.00 percent for general merit and 0.50 percent for college market adjustments. Additionally, 0.50 percent was approved for an Office of the Provost market pool for market adjustments for non-union faculty and academic staff. The central market pool is targeted primarily for ranked faculty, but open to all faculty and academic staff. As in past years, guidelines for the university-wide market pool will be distributed separately.

This memorandum contains information on the allocation to faculty of the Board approved merit and college market salary increases. It also includes information on a 1.00 percent academic competitiveness merit pool for tenure system faculty and ranked NSCL faculty to be effective January 1, 2015.

Merit Basis
Raises will be distributed on the basis of merit. Adjustments for individuals should recognize relative merit in the performance of their duties across the university's mission of teaching, research and outreach. Unit administrators are expected to ensure that individual performance is assessed through the appropriate peer review process and that salary increase recommendations are differentiated based on merit assessment.

The Office of the Provost has consulted with the University Committee on Faculty Affairs (UCFA) on the salary adjustment guidelines in accordance with the Bylaws for Academic Governance. The UCFA believes that salary adjustments should be based on the concept of merit as reinforced by appropriate peer review. The UCFA and Academic Specialist Advisory Committee written recommendations are attached.

Guidelines for distribution of salary adjustments on the basis of merit will be developed at the unit level in accordance with the principles stated. Primary unit administrators have responsibility for unit guidelines ( Bylaws for Academic Governance) and must seek the advice of unit faculty in developing the guidelines.

In accordance with university policy, efforts to advance university objectives that are crosscutting and/or interdisciplinary must be recognized in the merit process along with contributions to the creation, transmission, application, and preservation of knowledge. This category includes efforts in areas such as university outreach; integrative studies; international activities; and diversity, inclusion, and pluralism. In addition, consideration should be given for contributions such as service in academicgovernance, including grievance panels.
Consistent with past practice, research associates are considered to be part of the university's academic staff. These salary increases should be handled in accordance with these guidelines. Further, faculty and academic staff with approved terminal consultantships and/or established retirement dates are eligible for salary adjustments based upon merit.
Faculty members are entitled to know the evaluation criteria and process by which they are being evaluated, as well as the connection between that evaluation and their merit raise. It is expected that an overall satisfactory evaluation based on peer review should warrant some salary increase, depending on the relative merit of the individual's contributions. No faculty member is entitled to a merit increase based simply on meeting assignments; quality and impact of the performance must be the basis for the decision along with quantity of work. Adjustments should be based fully on merit and incorporate an appropriate form of peer review.
In determining salary increase recommendations, consideration must be given to ensuring equitable and fair treatment for faculty and academic staff and must be consistent with merit and market considerations. A salary cohort analysis, based on November 2013 salary data for tenure system faculty, was previously distributed and should be reviewed as part of the regular salary adjustment process. Also, the director of the Office for Inclusion and Intercultural Initiatives will continue to make an annual review of salary increase recommendations. We ask you to cooperate fully in the review. The director will share the responsibility for the analysis with the Office of the Provost; the Associate Provost and Associate Vice President for Academic Human Resources will follow up as necessary.
A decision to make no salary adjustment or a very low salary adjustment to an otherwise eligible individual may result from merit considerations. Deans are not required to submit written explanations of the rationale for any merit-based salary adjustment decision, but documentation (process and related individual documents) should be retained in the appropriate administrative office.
Deans Withhold
Generally, deans allocate salary adjustment funds to primary units in equal or approximately equal proportion. However, merit, promotions, and other considerations may require a differential distribution to units. This distribution is funded through a factor commonly referred to as the "Dean's Withhold." To the extent that such a factor is required in 2014-15, deans may withhold up to 0.15 percentage points. It is anticipated that deans will apprise appropriate faculty advisory groups of the existence of the withhold and its intended use.
If deans depart from this guideline, the appropriate faculty advisory group and relevant unit administrator must be consulted, and the approach reviewed with the Office of the Provost prior to the distribution of funding to the units.  Information about such procedures must be made available, if requested, to unit administrators and faculty.
Deans College Market Adjustment
An allocation of 0.50 percent is provided to address faculty salary needs. This allocation is administered at the College level, may be distributed differentially across departments, and raise adjustments will be based on merit.
Academic Competitiveness
Funding of $3.0 million will be allocated to build academic competitiveness at the College level. This fund is based upon a 1.00 percent merit pool calculated from the tenure system faculty base to be effective January 1, 2015 and awarded to key faculty and staff. Allocations will be determined based upon merit. Units will receive a fully annualized allocation for the January 1 effective date, leaving approximately half of the allocation available for non-recurring use in FY15. These residual funds may be allocated on a non-recurring basis in critical programs targeted to advance academic excellence. Colleges are expected to generate specific plans in consultation with appropriate governance groups and secure the approval of the Office of the Provost prior to committing funds.

Central Support for Promotions
Central support for promotional increments for tenure system faculty will be provided in 2014-15 at $2,000 per promotion from Assistant to Associate Professor and at $2,500 per promotion from Associate to Professor. For those appointed at the associate professor rank but without tenure, $2,000 will be provided upon receipt of tenure. Promotional increases for Librarians will be recognized with central support of $2,000; $1,000 will be provided for the promotions of Senior Academic Specialists, and continuing NSCL staff.

If unit promotional policy exceeds the above funding, units are responsible for funding such increases through the raise list. Raise control figures may be exceeded by theamounts centrally provided for promotional increments.

Minimum Salary Levels
Minimum salary levels for designated groups should apply generally. Merit considerations, however, may result in a lower salary rate in individual cases.

Minimum Salary Guidelines: Tenure System Faculty (2014-15)

Faculty Rank Academic Year Annual Year
Assistant Professor $46,844 $57,254
Associate Professor $54,987 $67,206
Professor $63,010 $77,012

Minimum Salary Guidelines: Non-Tenure System Faculty (2014-15)

Faculty Rank Academic Year Annual Year
Lecturer $28,588 $34,942
Assistant Instructor $28,588 $34,942
Academic Specialists
(Appointed as Academic Advisors)
$28,588 $34,942
Instructor $28,588 $34,942
Assistant Professor $37,318 $45,611
Associate Professor $47,334 $57,853
Professor $58,291 $71,244
Research Associate $30,232 $36,951

Below is the raise process schedule for faculty and academic staff:

Monday, August 18: Cognos raise model open for unit entry for non-union and union raises
Friday, September 12: Cognos raise model closes — non-union and union raises submitted to HR
Friday, September 12: Market Adjustment recommendations from units due to OPB
Friday, September 26: Market Adjustment recommendations approved and communicated to units
Wednesday, October 15: Raises loaded into the HR/Payroll System, including manual corrections
Friday, October 17:Raise notifications sent electronically via email to MAUs for distribution

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