Report suggests need for 4 percent salary pool increase

Ohio State administrators estimate that a 4 percent increase in salary is needed for Ohio State to maintain its current rankings.

Edward J. Ray, executive vice president and provost; Nancy M. Rudd, vice provost for academic policy and human resources; and Larry M. Lewellen, associate vice president for human resources, outlined compensation benchmarks during an annual report to the University's Board of Trustees on April 7. Recommendations for Ohio State's raise package for fiscal year 2001 will be presented to the trustees for approval at their May meeting.

"An increase of at least 4 percent will be needed this year to maintain our position,"Ray said. "An increase of 3 percent would result in further slippage in the rankings and an increase of 5 percent or higher would make progress."

When compared to the record of nine other major public comprehensive teaching and research universities that Ohio State uses for benchmarking, compensation for Ohio State faculty in fiscal year 2000 is 2.5 percent below the benchmark average of $72,130. Within the Committee on Institutional Cooperation (CIC), which consists of the 11 universities in the Big Ten and the University of Chicago, Ohio State is 5.2 percent below the benchmark average of $74,205, and 1.2 percent below the average of CIC public universities.

Last year, the board approved a 4 percent salary increase for the University. "The salary increase last year was not sufficient to prevent further slippage of our ranking within the benchmark institutions. Our history of rankings shows a steady erosion over the past 10 years,"Rudd said.

In the local/regional market, staff salaries for 1999-2000 are 3.6 percent above market for managers and administrators, 7.8 percent below market for professional staff, and 7.4 percent below market for paraprofessional and technical positions. Clerical and secretarial staff are 2.8 percent above regional employers and 8.3 percent below state government levels.

Rudd outlined the expected salary increases for several constituencies during the next year. Nationally, higher education is expected to increase salaries by 3.3 percent to 3.8 percent, while all employers are likely to increase salaries by 3.9 percent to 4.4 percent. Within Ohio, employer groups are expected to offer 3.8 percent to 4.2 percent.

The Faculty Compensation and Benefits Committee will not make a new recommendation this year (see related story, this page), but its most recent recommendation was 15 percent across three years. The University Staff Advisory Committee recommended a 5 percent increase in its 2000 Staff Compensation and Benefits Committee report, consistent with its previous recommendation of 15 percent across three years.

Ohio State has taken several steps to ensure that the funds available are put to the best possible use. "Initiatives are in place to ensure we lead higher education in innovative compensation practices with the resources we have available,"Lewellen said.

He noted Ohio State's implementation of a reward and recognition policy which provides for responsible use of incentives and cash and noncash rewards; the addition of budget flexibility for the annual raise process which allows colleges and vice presidential areas to invest additional funds to improve equity and retention and to reward performance; and the development of a compensation planning training program for deans and chairs. All raises at Ohio State continue to be targeted for performance, market equity and internal equity rather than any entitlements.

Ohio State faces several challenges in determining a competitive compensation package, Lewellen said. "Labor markets continue to be very tight, including hot markets such as information systems and technology staff,"he said. "Salary compression is also an issue due to the hiring salaries needed for the tight labor market,"Lewellen said. To attract new hires, the University may have to offer new employees more compensation than current employees, placing strain on budgets and leading to issues of salary inequity within a unit or department.

"Last year, over 75 percent of the colleges and vice presidential units invested their own funds to boost the raise package for their college, demonstrating the seriousness of the situation,"he said.

Lewellen also noted that the effect of projected increases in benefit premiums, parking and other fees need to be considered, as well.

FCBC points to faculty salary erosion

In a presentation to University Senate on April 8, the Faculty Compensation and Benefits Committee (FCBC) explained Ohio State's salary ranking in comparison to its peers and examined the process of awarding compensation.

"Our first conclusion and main point is that there has been a steady decline in OSU salaries in regard to each of the relevant focus groups. This has been a trend for some years now,"said Richard K. Herrmann, professor of political science and chair of the salary subcommittee.

"Reversing this downward trend should be important to the University," he said. "We all agree the faculty are the central heart of Ohio State's efforts to become a top institution."

For the report, the committee compared Ohio State's faculty salaries to those at nine other major public comprehensive teaching and research universities.

"We also looked at figures controlling for disciplines. That showed us whose departments were closer to or further from the market. We also controlled for the cost of living,"Herrmann said.

Considering these two factors for 1998, Herrmann said Ohio State's benchmark ranking didn't change, staying in the sixth position.

In 1996-97, Ohio State ranked third among benchmark institutions. Taking into account that the next three years could see an average yearly increase level of 5.34 percent (based on that average for the past three years), FCBC estimates that Ohio State would need to raise its salaries by at least 6.67 percent annually to return to its ranking of third among the benchmark institutions by fiscal year 2002.

FCBC also compared Ohio State to salary levels within the Committee on Institutional Cooperation, which consists of the 11 universities in the Big Ten and the University of Chicago. Ohio State ranks ninth in this grouping, down from its fourth position held from 1989 to 1992. To return to that ranking, Ohio State would need to increase salaries by 6.38 percent annually for three years, assuming the other institutions continue to see an average yearly increase of 5.05 percent.

Within the 62 institutions represented by the Association of American Universities, Ohio State ranks 40th, down from a ranking of 17th in 1984-85. For Ohio State to rise to the 25th position among the AAU institutions, the report estimates that the University would need to raise salaries by 8.34 percent annually for the next three years.

FCBC recommends several principles to guide salary compensation decisions, including: keeping decision-making decentralized, basing compensation on merit as well as on market value, and calculating salary increases in dollars rather than percentages.

President Kirwan stated his support for the report's principles. "I think it is an exceptional report. It documents so clearly the erosion in faculty salaries,"he said. "There is no doubt that the aspirations we have as a university of distinction can be realized only if we reverse the trend. I agree with the findings in this report, and I am committed to the report's recommendations."

Ohio State, collaborators to chronicle the Midwest

A first-ever attempt to capture the breadth, depth, spirit and culture of the nation's Midwest region was launched in mid-April with the inaugural conference on the Encyclopedia of the Midwest.

The encyclopedia encompasses the states of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.

"This is an effort to capture the heart and soul -- indeed, the essence -- of the fascinating mix of people who live and work in the nation's core,"said Richard Sisson, Distinguished Trustee Professor of political science and one of the three general editors of the encyclopedia. "Countless millions of people have settled here or have been born here, raised families here, pursued their dreams here, died here, and have fashioned lasting and distinctive things here. But this region is called the nation's heartland for a reason -- it is also alive with the mystery and the magic of America. We hope to chronicle it."

More than 70 senior consulting editors, writers and advisers participating in the encyclopedia's compilation met for three days at Ohio State, which is leading the effort.

"We are in the early stages of this effort and it was important that we get all the major editors and writers together to share our ideas and get us all on the same page,"said co-general editor Christian Zacher, professor of English and director of OSU's Humanities Institute. "We have some of the brightest minds and most talented researchers in the Midwest and beyond collaborating with us on this project, and it was exciting to hear their exchange and their views -- it was a microcosm of the Midwest itself."

Andrew Cayton, Distinguished Professor of history at Miami University, serves as the third co-general editor of the encyclopedia.

Zacher explained that the Web site, www.allmidwest.org, which will be updated frequently, will contain the latest developments about the project and increasing amounts of information about the region. It is intended to be an evolving resource for researchers and the public. It will invite members of the public to provide their image of the Midwest and offer comment about the project and its contents.

"This project reflects a major mission of this land-grand university: providing knowledge to the communities we serve about our common history, culture, economic progress and creative potential,"noted Executive Vice President and Provost Edward J. Ray. "In fact, this project brings together extraordinary talent from around the nation to study the essence of the Midwest. It is the kind of project that could only be undertaken at a major public research university. And it reflects the kind of ambitious and essentially interdisciplinary thrust that we encourage and support at Ohio State."

The project is sponsored by the Institute for Public Humanities and Collaborative Research and has received funds from the Columbus Foundation, the Paul G. Duke Fund and Ohio State. Sisson noted that he hopes the encyclopedia will be completed in time for the Ohio Bicentennial in 2003.