OF RECORD	Print Issue
April 14, 2009, Volume 55, No. 29

Salary Guidelines for 2009-2010

The University of Pennsylvania’s merit increase program is designed to recognize and reward faculty and staff by paying market competitive salaries in a fiscally responsible manner. The merit increase amount for fiscal year 2010, as always, is based on market trends, economic conditions and fiscal responsibility. 

As detailed in President Gutmann’s letter of December 3, 2008 to the University community, the continuing downturn in the U.S. economy has required that we moderate our salary pool in order to conserve resources and to preserve jobs. The senior leadership of the University—including Deans, Vice Presidents, Senior Officers, and the President—will receive no salary increases.

In light of prevailing economic conditions and the severe constraints they place on salaries, the following general principles should apply: (a) increases should be allocated in such a way that faculty with lower compensation and staff within the lower position grades receive on average higher percentage increases than those who are already more highly compensated; (b) increases should acknowledge the valuable contributions of faculty and staff while helping Penn to remain a strong and financially viable institution; (c) some schools and centers may have smaller (or no) merit increase pools for staff and faculty due to financial constraints. With this in mind, the following guidelines are recommended.

Faculty Increase Guidelines

Presented below are the standards for faculty increases for July 1, 2009 that school deans are asked to follow. The deans will give department chairs their own guidelines at the school level regarding available resources. 

• The minimum academic salary for new assistant professors will be $56,000. As in previous years, there will be no minimum base increment for continuing faculty.

• This year’s aggregated merit increase pool for faculty may not exceed 2.0 percent, with a range from zero to 3.0 percent. Merit increases for faculty should be based on performance as evidenced in scholarship, research, teaching and service to the University and the profession.

• A number of schools and centers have financial constraints that can only support budget growth of less than 2.0 percent. These financial constraints will affect the salary increase percentage that can be awarded, and may in some cases require holding salaries at current levels. This information will be communicated separately by the school or center’s administration.

• Some schools may announce limits on salary increases for an entire class of faculty; for example, a decision could be made to provide no increase to faculty members earning more than a certain income. Salary increase recommendations that are below 1.0 percent for non-meritorious performance, as contrasted with general limits applied to an entire class of faculty, must be made in consultation with the Provost. Any salary increases that exceed 3.0 percent due to market conditions must also be made in consultation with the Provost. Deans may wish to give careful consideration to salary adjustments for faculty who have a strong performance record but whose salary may have lagged behind the market.

Staff Increase Guidelines

Presented below are the merit salary increase guidelines for July 1, 2009.

• This year’s aggregate salary increase is 2.0 percent with a range of zero to 3.0 percent maximum. Some schools and centers may have financial constraints that cannot support a merit increase pool or only support budget growth of less than 2.0 percent. These financial constraints will affect the salary increase percentage that can be awarded. This information will be communicated separately by the school or center’s administration.

• Monthly, weekly and hourly paid staff members are eligible for a merit increase if they are a regular full-time, regular part-time or limited service status employee, and were employed by the University on or before February 28, 2009. The following groups are not covered under these guidelines:  student workers, interns, residents, occasional and temporary workers, staff on unpaid leave of absence, staff on long-term disability and University staff that are represented by a union.

• The merit increase program is designed to recognize and reward performance. Salary increases should be based on performance contributions within the parameters of the merit increase budget.  The foundation of this program is the Performance and Staff Development Plan.  The performance appraisal system documents the employee’s performance and contributions and establishes performance goals for the new fiscal year. All employees must receive a Performance and Staff Development Plan for the next review cycle whether or not they receive a merit increase. The schools and centers are requested to submit performance appraisals by June 1, 2009. The Division of Human Resources’ Staff and Labor Relations office is available to discuss performance management issues.

• Merit increases should average 2.0 percent unless a school or center establishes a lower percentage merit pool based on financial considerations.  The aggregated salary pool may not exceed 2.0 percent regardless of performance rating distributions. Performance expectations should be raised each year as employees grow in experience and job mastery. Employees who consistently meet established standards may receive up to 2.0 percent. Some schools may announce limits on salary increases for an entire class of staff;  for example, a decision could be made to provide no increase to staff members earning more than a certain income. Employees with unacceptable performance are not eligible for a merit increase (0%). Salary increases above 2.0 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 3.0 percent. The Division of Human Resources’ Compensation office is available to discuss specific merit increase parameters with schools and centers. Staff and Labor Relations is available to discuss performance management issues.

This year’s salary guidelines have been designed to recognize and reward the valuable contributions of faculty and staff to the University’s mission and commitment to excellence.

—Amy Gutmann, President

—Vincent Price, Interim Provost

—Craig Carnaroli, Executive Vice President