April 3, 2008
Study reveals competitiveness of pro staff total compensation
How does UW’s compensation package compare to other local employers? Better than you might expect, according to Milliman, an independent consulting firm that conducted a total compensation study of professional staff compensation. The consulting firm analyzed salaries along with the value of benefits to get a picture of the competitiveness of UW’s total compensation for the professional staff program.
“A study on professional staff compensation has been commissioned by Human Resources approximately every two years since 1990. The most recent survey looked for the first time at the value of benefits in addition to compensation,” explains Mindy Kornberg, vice president of UW Human Resources. “We knew that the UW offered a robust benefits package, but were delighted to see just how competitive the package is when compared to benefits packages offered by other employers in the region.”
The study compared UW benefits to those of a mix of 161 public and private sector northwest organizations. Of this comparison group, the UW’s medical and dental benefits and professional staff retirement plan ranked above the 75th percentile.
Milliman observed that while private sector employers usually offer incentive compensation in the form of bonuses, stock options or both, few northwest employers actually come close to matching the UW benefits package. “The University provides a number of significant attractions beyond direct compensation,” the report notes. “These include a highly desirable location, the opportunity to work at a premier institution of higher education, a stimulating work environment, job security, and rich cultural experiences, just to name a few.”
The study also found that the UW is making progress on salaries. Average compensation for the 6,962 professional staff is 4 percent behind the market. This is an improvement from the 2005 survey, when average professional staff compensation lagged behind the market by almost 9 percent. While overall salaries were close to the market, the study found that, for salaries below $60,000, the UW pays at or near the market median. However, as salaries rise, so does the gap with the market.
The study reports that even when market gaps are small or nonexistent, the UW faces challenges in hiring. The cost of living in the Seattle area is 23 percent higher than the national average. The merit increase pool available for professional staff has varied widely from year to year — in the last 14 years ranging anywhere from zero to a high of 8 percent.
Milliman bases its report on salary data collected from regional and national markets, as well as information from the higher education community. A UW committee of professional staff helped select the categories of benchmark positions looked at for this year’s study.
The University regularly conducts salary surveys to ensure that salaries are competitive and to maintain internal equity across and within salary grades. A study of classified staff compensation alternates with the professional staff survey, and will be conducted later this year.
The full 2007 Pro Staff Salary Survey will be available next week at copy centers throughout campus. A comprehensive summary of the survey will also be available online at the Human Resources Web site.
