Market Pricing Study

Frequently Asked Questions

How was the market pricing study conducted?

Over the past two years, a broad market study was conducted to determine which University staff employees are paid at the least competitive level. This study was conducted using industry and job family specific compensation data from Watson Wyatt, Mercer HR Consulting, College and University Professional Association (CUPA), Jefferson County Public Schools, and city and college police departments in the state of Kentucky.

Who was included in the market pricing study?

Staff employees who are 80% FTE or more (work 80% of a full-time schedule).
Faculty employees were not included. Faculty market comparisons are conducted annually by Institutional Research.

Who will receive an adjustment and why?

Staff employees paid below 90% of the estimated market minimum will receive an increase in pay.
Payouts will be a two-part strategy.

Part 1: There will be a lump sum payout to eligible employees for the 2007 Fiscal Year.
Part 2: There will be an adjustment to eligible employee's base pay for the 2008 Fiscal Year.

The objective is to bring annual pay closer to the estimated market minimum.
These market adjustments are not intended to reward for performance or time in the position.

When will market adjustments be reflected on paychecks?

Lump sum payments will be prorated for employees who have not been in the position for a full-year as of July 1, 2008. Lump sums will be received as a separate direct deposit/check on June 30, 2008.
Market adjustments to base pay for classified employees will be reflected on their July 11, 2008 paycheck; for P & A employees, the base pay adjustment will be reflected on their July 30, 2008 paycheck.

Will overtime be calculated in lump sum payouts?

Yes, the payroll department is calculating overtime for lump sum payouts based on actual overtime hours worked for the previous fiscal year.

How will merit increases be calculated for the 2009 Fiscal Year?

What is the process for receiving an increase?

Each department will receive verification letters identifying eligible employees in their department scheduled to receive adjustments.
The department should verify the employee's position and submit any data corrections to HR using the response form provided with the verification letter.
Once the position information has been verified, departments will receive a notification letter confirming the adjusted pay, effective date, and any additional information for the pay increase. Departments will also receive employee notification letters to distribute to affected employees by June 13, 2008.

How will I know if I am eligible for the pay increase?

Eligible staff employees will receive a letter notifying them of the market adjustment. This letter also will explain the payout details as well as how current pay will be affected.

Why would I not receive an increase?

Staff employees currently paid at or above 90% of the current market minimums are not eligible for this market adjustment/increase.
Staff employees working less than 80% of a full-time schedule (are less than 80% FTE) are not eligible.
Faculty employees are not eligible.

Who should I contact if I have questions regarding an adjustment?

Questions may be directed to your department or Dennis Finnegan at djfinn03@louisville.edu or 852-7752 in Human Resources.

Where did the University find the funds to make market adjustments during a very tight budget time?

These funds for staff salary catch-up were budgeted before the budget cuts. University administration remained committed to distributing these funds for this purpose.

Will the market study be completed again?

Human Resources will continue to benchmark University positions with compensation data survey sources and provide competitive market analysis on an annual basis.
Future market adjustments will be determined by the results of each annual market study and budgetary resources.