A Message from the VP of HR: Compensation Study & Next Steps

A fair, sustainable, and agile compensation program is a critical component in attracting, developing and retaining an exemplary workforce that is integral to the success of an institution.   With that as a guiding principle, the Office of Human Resources, with the support of President Mike Fitts, Senior Vice President and Chief Operating Officer Patrick Norton and Senior Vice President of Strategic Initiatives and Institutional Effectiveness Richard Matasar, launched a Compensation Study as the first step in establishing such a program.  Here are the ways in which the study affects the Tulane community.

Why was a Compensation Study conducted?  

The study was conducted in response to two primary areas of concern. The first was to identify whether Tulane University pays more, less, or the same as other institutions for similar positions.  The second was to create a standard for consistent and equitable compensation of similar positions across the university’s schools, offices and departments. The overall intent is to offer transparent career pathways for employees.  Fair and competitive salaries will help attract and retain the employees needed to achieve our goals.

How was the study conducted?

Willis Towers Watson (WTW), a globally recognized leader in human capital management, was retained to conduct this study.  Office of Human Resources staff were also included in the project team.  WTW reviewed compensation data from 24 salary surveys. The data included three industry categories: higher education, not-for-profit and general employers. Tulane’s positions were analyzed against market rates taking into consideration national, regional and local market competitiveness.  

WTW assisted in the development of a new pay structure agile enough for career advancement and lateral movement across Tulane.  In a lateral move, an employee transitions to an equivalent role, usually with a similar salary range and job title. The move, however, offers a change in job responsibilities thus affording the employee new opportunities.  All current jobs were graded accordingly based on the data.

As a result of the findings, new pay ranges were also established.  A pay range is the range of pay established for a particular job.  It includes a minimum and a maximum pay rate, which allows employers to pay within that range based on an employee’s job and performance.  

What are the findings?

On average, Tulane pays comparably to other organizations for similar positions.  Approximately 33% of Tulane positions fall within the mid-pay range, 40% fall within the lower third of the pay range and 14% in the upper third of the pay range.  There were 12% of our positions that fell below the minimum of their assigned pay range and 2% were above the maximum of the pay range.  

Will my pay be impacted?  

Pay rates for the 12% of our employee population whose pay fell below the minimum of a pay range will be adjusted to the newly established pay range.  Changes to staff pay, if any, will be effective July 1, 2018.  In an effort to enhance the employee experience and provide transparent communication, the Office of Human Resources will issue salary confirmation letters this year.  These letters will be provided to Deans, Directors and Department Heads for distribution to all staff within their respective schools and departments and will include the employee’s newly assigned pay grade and range, merit increase, and new annual salary.  The anticipated distribution date of these letters is late June to early July.  We anticipate publishing pay ranges and informational sessions after the new pay ranges become effective in July.  

Did the Compensation Study include faculty salaries?

Faculty pay was not included in this Compensation Study since faculty salaries are established in a different manner.  

What happens next?

Now that we have completed the Compensation Study, we will begin meeting with managers and supervisors to ensure that everyone fully understands the findings and how Tulane will administer pay and evaluate jobs and performance in the future. Conducting the Compensation Study was the first step in a process that will ultimately clarify job titles and descriptions throughout Tulane.  The HR website contains a Compensation Study section, http://hr.tulane.edu/compensation/compensation-study, which includes a timeline for implementation, as well as contact information for members of the Compensation Team should you have questions.  The website will continue to be updated with the latest information.  

The objective is to facilitate equity, fairness, consistency and transparency in managing pay competitively within Tulane’s funding capabilities, and provide opportunities for rewarding performance and career advancement.  

Thank you for your support of this important project and your continued dedication to Tulane University.