Frequently Asked Questions (FAQ)
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Methodology
The W3 Committee, along with the Steering Committee, approved peer groups for the study that reflect sources and destinations of talent, both regionally and nationally. The peer group selection process was criteria-based to establish objective guidance and then finalized through qualitative review. Criteria included Carnegie classification, enrollment, geographic location, expenses, research, faculty/staff FTE, etc.). CPE benchmarks that participate in the CUPA-HR salary surveys were also included.
The university's compensation study is using the same peer group for faculty and senior-level professional and managerial staff. This selected peer group (listed within the Benchmarks section) is a national set of peer institutions, reflective of the metrics and criteria agreed upon by both the W3 Advisory Committee and the Steering Committee back in 2022. The strategy has been, and will continue to be, to have the same peer group for these two employee populations. The compensation of staff whose roles were not classified as senior-level professional or managerial was compared with a separate peer group which had to incorporate a higher number of regional peer institutions due to the lack of robust national data for those staff positions. Again, this peer group development approach was agreed upon by both the W3 Advisory Committee and the Steering Committee.
The Classification of Instructional Programs (CIP) is a taxonomy of academic disciplines at institutions of higher education in the United States, developed by the U.S. Department of Education's National Center for Education Statistics. Each full-time faculty member is assigned a CIP code based on the instructional discipline of their home department. The Office of Institutional Research supplied Segal with each full-time faculty member’s CIP code by using the schema provided by the U.S. Department of Education (DOE) and is included in annual compliance reporting to DOE and the Kentucky Council on Postsecondary Education (CPE). Segal then compared each UofL full-time faculty member to the faculty members of their same CIP code at the institutions in the comparison peer group by reviewing the latest CUPA-HR survey data on record for each of the peer group institutions. The College and University Professional Association for Human Resources (CUPA-HR) conducts faculty salary data through their Employees in Higher Education Surveys.
NOTE: The Office of Institutional Research maintains the mapping of faculty disciplines to defined CIP codes and these codes are reviewed every 10 years, with the most recent review completed in 2020.
CUPA-HR Survey data does not provide specific discipline matches for instructional health care faculty, so the faculty of the School of Dentistry, School of Medicine and School of Nursing were each assessed against the latest salary data for their professional associations’ faculty salary surveys (i.e., ADEA Survey, AAMC Survey and AACN Survey). Additionally, because CUPA-HR Survey data is dependent on instructional discipline CIP codes, that data could not be used for UofL librarians and they were instead assessed against the latest Association for Research Librarians faculty salary survey.
Each unit's LFO will identify for Segal which of their faculty had promotions or changes in rank/salary/tenure occur between January 1 through July 1, 2024. Segal will ensure those faculty members are assessed by their new rank, salary and tenure status.
Yes. Segal is analyzing all existing full-time faculty data as of Jan. 1, 2024. Since faculty administrators meet the definition of full-time faculty who are at least .80 FTE as a university employee, their faculty base salary is being analyzed in the study.
Our study is evaluating compensation by rank and discipline. We are using Classification of Instructional Programs (CIP) codes for discipline comparisons, which is the same framework peer institutions use to classify their faculty.
We recognize that the absence of general wage increases has caused us to fall below market in how faculty and staff are compensated. As an outcome of this study, we are working on making pay more competitive. Once developed, we will communicate our strategy and rationale to how pay adjustments are being made. We don’t have the answers yet, but we are committed to being transparent once we do.
The CUPA-HR Faculty Salary Survey (CUPA-HR Survey) was used as the market data salary source for the majority of UofL’s colleges and schools. CUPA-HR Survey data does not provide specific discipline matches for instructional health care faculty or librarians. Librarian faculty and the health care faculty of the Schools of Dentistry, Medicine and Nursing were each assessed against the latest salary data for their respective professional associations’ faculty salary survey (i.e., ARL Survey, ADEA Survey, AAMC Survey and AACN Survey). CUPA-HR Survey data lacks specificity for discipline variation for these types of faculty. On the recommendation of Segal, and after consultation with each of these unit deans, the professional association faculty salary surveys were instead used as the market data salary source for these units. These surveys provide discipline-specific benchmarks for their faculty, and the units have used these same surveys for past hiring decisions.
The market data used for this study was from the 2023-2024 academic year, and all market data was aged to July 1, 2024, to ensure accurate comparisons of data with various effective dates. The aging factor (3.5%) used to adjust the data for both the staff and faculty studies was determined using Segal’s Salary Budget Survey data collected from published data sources on actual and projected salary budgets by industry and market best practices.
Faculty data for this study was first gathered in fall 2022, and each unit’s dean, LFO and faculty affairs representatives participated in multiple rounds of review and data validation efforts throughout 2023 and 2024, with the latest review having occurred summer 2024. Faculty promotions were applied to the data after the June 2024 BOT meeting took place.
CUPA-HR survey data is reported based on annualized salary data from 9-10 month contract lengths. Per CUPA-HR guidelines, Segal adjusted the data for UofL faculty with 11-12 month contracts using a 122% adjustment factor. Professional association faculty salary survey data (i.e., ARL Survey, ADEA Survey, AAMC Survey and AACN Survey) were similarly adjusted based on the baseline contract length reported in each survey. (The inverse adjustment for surveys with 11-12 month contracts is 82% for faculty with 9-10 month contract lengths.)
This study focused on market competitiveness by rank and by discipline. Faculty performance and time in rank, though important factors, were not assessed in this study. Those factors will be considered, however, as part of the implementation strategy that gets further developed going forward. The Provost will speak more on this topic at the August 7 Faculty Town Halls.
Transparency is an important part of this process. Segal's methodology has been presented at multiple campus meetings, and copies of those presentations are posted in the Project Updates section of the Timeline on this website. The overall, non-identifying results of the study's data will be presented by the Provost during the August 7 Town Halls.
Budget and pay adjustments
The UofL Board of Trustees (BOT) approved a budget of $6 million to be reserved from central university funds for the faculty compensation study pay adjustments and related fringe costs (i.e., faculty benefits and retirement).
The 2.5% general wage increase (GWI) that the UofL BOT approved in June 2024 was first applied to faculty base salaries before pay adjustments were determined for any faculty below 80% of market median.
All faculty within the scope of the study will receive an email notification on August 9 confirming if they will receive an adjustment or not. Notifications to those who are receiving a pay adjustment will see the total pay adjustment amount they are receiving as a result of this study. Pay adjustment totals are inclusive of both market increases and any outlier corrections. Faculty pay adjustments will be applied retroactively to July 1 and will appear in monthly paychecks beginning in August for those who are receiving a pay adjustment.
Findings and potential impact
We expect preliminary study results by late summer or early fall. The overall results and implementation strategy will be shared at the Aug. 7, 2024, Faculty Town Hall events. (See the event details and RSVP information.) After those Town Halls take place, pay adjustment notifications will be sent in early August to all faculty who were part of the study whether or not they are eligible for an adjustment in 2024.
It is too soon to say what the outcomes of the study will be. We do expect to leverage the study’s findings to move toward more competitive pay at the university. The scale of any changes and who will receive them is unknown at this time.
As a result of this study, we as a university will know comprehensively – for the first time – where we stand in the market as it relates to salary competitiveness. This study will allow us to put together a strategic approach to address any salary gaps among other financial realities at our university. As findings are developed, we’ll be eager to share our plan on how we address competitive gaps over the long-term. Our expectation is that we will not be able to address wage gaps “overnight.” This will require a multi-factored approach and may take several years to implement, but we are confident that the information we receive will allow us to create a viable plan.
That is not yet known. The university will make an informed decision based on the results of the study. Part of the study’s purpose is to understand the current salary benchmarks, establish a baseline and use this information to chart a plan of action. Allocating a budget and implementation plan for any adjustments will require a multi-year approach. We promise to keep you informed through each stage of the process.
The approach to address broader faculty competitiveness and equity has not yet been defined.
That determination has not yet been made. Faculty representatives and senior leadership will determine the levels based on our budgetary realities.
The initial purpose of the Faculty Compensation Study is to review and compare UofL’s Faculty salaries by rank and discipline to the market. Upon completion of the Faculty Market Assessment, the university expects to leverage the study’s findings to create a plan to move toward more competitive pay at the university; however, the scale of any changes and who will receive them is unknown at this time. Communication regarding next steps of the Faculty Compensation Study will be provided.
Department budgets and the general fund will be the primary source of any pay increases. There are always competing interests for institutional resources. The pace of faculty increases will need to consider the entirety of our financial situation.