Salary Guidelines for 2005-2006
The principle guiding our salary planning for fiscal year 2006 is to pay faculty and staff competitively, in relationship to the markets for their positions and prevailing economic conditions, and to act with fiscal responsibility in the award of annual increases. Salary increases should acknowledge the valuable contributions of faculty and staff to the University, and should help Penn remain a strong and financially viable institution. With this in mind, the following guidelines are recommended.
Faculty Increase Guidelines
Although individual faculty guidelines are made at the school level, with deans issuing to department chairs their own guidelines regarding available resources, certain standards have been established to which we ask all deans to adhere:
• The minimum academic salary for new assistant professors will be $51,750. Salary increases to continuing faculty are to be based on general merit, including recognition of outstanding teaching, scholarship, research and service. As in previous years, there will be no minimum base increment for continuing faculty.
• The pool for merit increases for faculty shall not exceed 3.0 percent, with a range from 0 to 6.0 percent based on performance. In cases where schools wish to make faculty members’ salaries more competitive to meet market standards, deans may supplement the pool, but this supplement must not exceed 0.5 percent without prior approval of the provost. Recommendations to provide an increase lower than 1.0percent for non-meritorious performance or more than 6.0 percent for extraordinary performance should be made in consultation with the provost. We also ask that deans pay particular attention to any faculty who meet standards of merit but whose salaries, for various reasons, may have lagged over the years.
Staff Increase Guidelines
Penn’s salary structure and the information technology (IT) broadband salary structure have been adjusted to reflect market competitiveness, effective April 1, 2005. All staff salaries must be at or above the minimum of their respective grades, effective April 1, 2005.
The following are guidelines for the July 1, 2005 merit salary increase program:
• Monthly, weekly and hourly paid staff members (excluding bargaining units) are eligible for a merit increase if they are in a regular full-time, regular part-time or limited service status, are not student workers, and were employed by the University on or before February 28, 2005. Schools and Centers may find it necessary to generate funds for staff salary increases through administrative restructuring, managing staff vacancies and other cost-saving initiatives. Success in these initiatives will enhance a School or Center’s flexibility in awarding competitive salary increases for high performance.
• Performance is the primary basis for all staff salary increases. All staff members must receive a current Performance and Staff Development Plan reflecting performance contributions and a plan for the upcoming review cycle whether or not they receive a salary increase. All performance appraisals are due by June 3, 2005. The distribution of salary increases should be based on performance contributions and support the feedback provided through the Performance and Staff Development Program.
• This year’s aggregate salary increase is 3.0 percent. However, many Schools and Centers can only support budget growth of less than 3.0 percent, and these financial constraints will affect their overall salary increases.
• Overall University guidelines are as follows: Salary increases for performance that consistently meets expectations may vary, but should generally range up to 3.0 percent. Of course, expectations at Penn should be high; and if performance does not meet high expectations, less than 3.0 percent should be awarded. Salary increases above 3.0 percent may be given for performance that exceeds established goals and expectations. Where performance significantly and consistently exceeds established goals and expectations, salary increases may be awarded up to 5.0 percent. If performance is unacceptable, no increase will be awarded. The Division of Human Resources Compensation Office is available to discuss specific salary increase parameters with each School and Center.
• Supervisors and staff are reminded that the economic constraints—including the discontinuation of bonuses—announced in Almanac (January 20, 2004), will remain in effect.
We believe this year’s salary guidelines will reward high performing faculty and staff for their contributions to the overall accomplishment of the University’s mission while helping it remain a strong and financially viable institution.
—Amy Gutmann, President
—Peter Conn, Interim Provost
—Craig Carnaroli, Executive Vice President
Almanac, Vol. 51, No. 28, April 12, 2005