BACKGROUND ON COMPENSATION AT THE UNIVERSITY OF MINNESOTA

Faculty are compensated for their contributions to teaching and advising, research and scholarship, and service to the institution and the state/region/nation/other nations, as well as their professions. Total compensation includes annual base salary plus fringe benefits, including retirement, health and dental coverage, and life and disability insurance. In some instances, annual base salary is augmented through internal sources, such as overload teaching, or from external sources in the case of approved external consulting.

Initial annual base salary is negotiated at the time of hire, with floors establishe for the instructor and assistant professor ranks only. Increases to annual base salary for faculty occur in the following ways: through annually determined merit increases; through acceptance of a retention offer that includes an increase; in conjunction with a promotion in rank and/or the awarding of indefinite tenure; through an augmentation attached to an administrative title or a set of administrative duties. For many faculty, annual base salary is supplemented with summer school or other internal summer employment, such as grant research. Annual base salary may also be supplemented internally during one's contract period through means such as extension teaching. Normally, new salaries go into effect for A base faculty on July 1 and for B base faculty on September 16 of each year.

The salary determination process must provide an objective unbiased evaluation of each faculty member following a thorough review of his/her work. The process must encourage continued good or improved performance, which in turn, should be rewarded by the compensation system.

CRITERIA FOR ANNUAL SALARY INCREASES AND PROMOTION

Any salary determination process at the University of Minnesota must be nondiscriminatory. Initial salary offers, periodic increases, and retention offers may not be based on considerations related to the race, color, creed, religion, national origin, sex, sexual preference, marital status, public assistance status, veteran status, or age of the person being considered.

The criteria for determining salary increases must be similar to those used for promotion and tenure. The tenure and promotion regulations of the University, adopted in 1985, provide the following instructions which form the framework within which salary decisions must be made:

7.11 GENERAL CRITERIA

The basis for awarding indefinite tenure is the determination that the achievements of an individual have demonstrated the individual's potential to continue to contribute significantly to the mission of the University and to its programs of teaching, research, and service over the course of the faculty member's academic career. The primary criteria for demonstrating this potential are effectiveness in teaching and professional distinction in research; outstanding discipline-related service contributions will also be taken into account where they are an integral part of the mission of the academic unit. The relative importance of the criteria may vary in different academic units, but each of the criteria must be considered in every decision.

7.12 DEPARTMENTAL STATEMENT

Each academic unit must have a document that articulates with reasonable specificity the indices and standards which will be used to evaluate whether candidates meet the criteria of Section 7.11.

FACULTY INVOLVEMENT*

Faculty input into the discussions surrounding criteria and procedures for salary increase determination is essential to maintaining an equitable and collegial environment. With the administrator of each unit, the faculty must have the opportunity to develop the criteria for, and the format of, the process through which annual salary increases are determined.** The documents that describe these criteria, formats, and processes shall be shared with the college dean, the appropriate vice president, and finally the Senior Vice President for Academic Affairs. This process must include the provision that the department chair (unit leader) meet with each faculty member individually, at least once per year, to review his or her performance. The sessions shall review the past year's performance and offer suggestions for enhancing productivity, where appropriate. Units may choose to conduct more in depth evaluations on a periodic basis (e.g. 4 or 5 years) that would include outside evaluations.

ALLOCATION FORMAT***

Each year the annual salary increase pool for meritorious performance received by the unit will be distributed based on the criteria specified in the University's Regulations Concerning Faculty Tenure and appropriate departmental faculty evaluation documents.

Unsatisfactory performance, which shall be documented and communicated to the individual involved, shall serve as justification for withholding an individual's increase.

PROMOTION INCREASES

Promotion from assistant professor to associate professor will be accompanied by an extraordinary recurring $2250 increase in base salary and promotion from associate professor to professor will be accompanied by an extraordinary recurring $3000 increase in base salary. These figures should be interpreted as minima and are in addition to the annual increase given for meritorious performance. The minima will be adjusted annually to reflect inflation using the Higher Education Price Index.^[1] It will be the responsibility of the Provost to identify the amounts each year and to communicate those amounts to the deans (or equivalent unit heads). The deans will set aside funding for promotional increases separate from funding normally set aside for merit and retention purposes. Deans may institute higher minima but are required to use consistent and equitable procedures when granting these increases.

OTHER RECOMMENDATIONS

A standing administrative and faculty compensation committee (including representatives of the Senate Faculty Affairs Committee) will examine and make recommendations on policies such as salary levels in the University as a whole, salary disparity among units, minimum salary levels for associate and full professors, and salary compression.

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NOTES

*For the purposes of salary discussion and determination, the relevant academic unit is the departmental or budgetary unit, whichever is smaller.

**The process determined through consultation may include faculty participation in the judgements regarding compensation changes as a committee of the whole or through a salary committee consisting in whole or in part of elected members.

***No mention is made of a possible across the board component of compensation increase because it is assumed that no faculty input is required at the unit level for such increases.

^[1] The Senate assumes the Provost's office will, after calculating the increases, round the results to the nearest $50 or $100. The Senate does not presume that any particular ratio between the two promotion increments will be maintained.