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Faculty: Compensation & Formulas
Date of Current Revision: May 2016
Primary Responsible Officer: Manager of Academic Fiscal Affairs
Faculty: Compensation & Formulas
Compensation
1. Faculty Compensation Policy. The Board of Governors of the University of Central Missouri has a primary responsibility to assure that the university allocates and spends its resources to fulfill its educational mission. The main mission of the university is to provide excellent educational opportunities for UCM's students. A quality faculty body is a primary factor related to student success; therefore, this compensation policy is designed to attract and retain the most qualified faculty possible within UCM's fiscal resources. For additional information see Faculty Compensation Policy Board of Governors Policy 2.2.010.
2. Faculty Compensation Procedures. Faculty Compensation Philosophy: In order to nurture a positive attitude of trust in the faculty compensation system, we affirm that the system should encompass the characteristics of openness, transparency, honesty, and responsible stewardship. It should be equitable and efficient; provide reasonable compensation for faculty members in all disciplines; insure that appropriately qualified faculty can be employed and retained to teach in each program and discipline offered by University of Central Missouri; and reflect meritorious contributions to the university community.
Faculty compensation includes three components: base salary, market pay, and merit pay. An open transparent system encourages discussion and general agreement by current members of the department about salary offers to incoming faculty as well as the public acknowledgement of market adjustments. Finally, although we recognize there might be disciplines for which the national salary for the discipline falls below the base salary ranges proposed for Central, we affirm that in our community of scholars each and every discipline has equal importance; therefore, no individual, regardless of discipline, shall be paid below the lower limit of the range for any rank, except as specified in these procedures.
Section 1. Base Salary
1. Base salary is a minimum competitive salary for a given rank when compared to similar institutions located in Central's geographic region. The base salary range appropriate to the discipline shall be indexed to the mean salary reported for each respective academic rank in the most recently available AAUP Salary Survey, Category IIA (Comprehensive), West North Central Region. The base salary range shall be an amount between 90% and 105% of the mean salary for each rank adjusted using a 5-year rolling average increase. The base salary range for faculty members who do not hold the appropriate terminal degree for the academic discipline shall be 85% of the upper and lower limits for terminally qualified faculty members.
2. In determining the annual allocation of monies made available for faculty compensation, the university president shall establish funding priorities for base salary, market, merit, and equity adjustments in consultation with the Faculty Senate Salary and Fringe Benefit Committee and provost. Under normal circumstances, priority will be given to base salary consistent with Section 2 (3).
3. Entry Base Salary
4. The provost may authorize base salary adjustments beyond the limits specified in Section 1 (1) to hire or retain faculty in response to university initiatives to employ faculty with unique and highly desirable characteristics or experience, including but not limited to, members of underrepresented groups.
a. Using the range described in Section 1 (1), a base salary for each vacant faculty position shall be determined by the provost in consultation with the dean at the time the position search is approved. If the approved total salary exceeds the top of the base salary range described in Section 1 (1), the amount in excess of the top of the base salary range will be a market pay adjustment and treated accordingly.
b. If the approved total salary (less merit) exceeds the total salary (less merit) paid to incumbent faculty members in the discipline with comparable rank and credentials, those faculty members shall be considered for a salary adjustment.
c. Candidates for employment arriving without an appropriate terminal degree shall receive a base salary consistent with the pay range for faculty members who do not hold the appropriate terminal degree until such time as the terminal degree is completed.
d. For a faculty member to be eligible for a salary increase resulting from a completed terminal degree, the Provost's Office needs to have received an Official Status of Advanced Degree Form before the first day of the month for which the salary adjustment is to become effective. If the notice is received during the final month of the contract period, no salary adjustment shall be made on that contract. Upon receipt of the form as indicated, a new Appointment and Employment Record Form shall be completed by Human Resources. The Official Status of Advanced Degree Form is to be completed and signed by the registrar, or another authorized academic officer of the university granting the degree. Official transcripts showing all work completed shall be sent to the Provost's Office as soon as possible.
e. Incumbent tenured/tenure-track faculty members in the discipline shall be advised of and consulted regarding the salary to be offered before a salary offer is extended to a prospective faculty member.
Section 2. Across-the-Board Increase in Base Salary
1. Subject to budget constraints, all full-time faculty members shall receive a permanent annual across-the-board percentage increase in base salary. For faculty members who receive a market pay adjustment, the annual across-the-board increase shall not cause the total salary (less merit) to exceed the applicable market benchmark salary.
2. The university president shall determine the annual across-the-board increase in consultation with the Faculty Senate Salary and Fringe Benefit Committee and provost. Across-the-board increases shall be applied to base salary only, not to merit and market pay adjustments.
3. Annual across-the-board percentage increases in base salary are intended to maintain incumbent base salaries within the base salary benchmark range described in Section 1 (1). Incumbent base salary levels shall be reviewed annually and revised to remain consistent with the range described in Section 1 (1).
Section 3. Market Pay
1. Market pay shall be defined as the difference between the top of the entry base pay range for the relevant rank and the total salary (less merit pay); up to the approved benchmark salary as described in Section 3(3).
2. Market pay shall be awarded based on discipline groups and minimum required credentials, determined and approved as described in Market Discipline Designation, for each discipline group rather than as individuals. All faculty members within a given academic rank and discipline who possess the required credentials shall receive comparable market pay.
3. Market pay shall be based on salary benchmark data appropriate to the institution and discipline. The provost in consultation with the FS Salary and Fringe Benefits Committee shall determine the salary benchmark data source(s) used for each discipline receiving a market adjustment. The Provost's Office shall maintain a list of approved market benchmark data sources for each discipline and provide the list annually to the Faculty Senate.
4. Market disciplines shall be defined as those whose approved salary data indicates that the benchmark salary of their faculty exceeds the upper limit of the base salary range.
5. Entry Market Pay
a. Entry market pay is defined as the difference between the top of the entry base pay range for the relevant rank and the total salary (less merit pay) ); up to the approved benchmark salary.
b. Using the approved benchmark data, a market pay adjustment for each vacant faculty position shall be determined by the provost in consultation with the college dean at the time the position search is approved.
c. Under exceptional circumstances and after consultation with the tenured/tenure-track faculty members in the discipline, the chair may request that the dean seek approval from the provost to extend an offer above the benchmark market salary (salary premium), based upon the immediate needs of the department (e.g. accreditation, a history of unsuccessful searches, or vacancy that has existed for a number of years). This proviso shall not be used to circumvent the limits of the established procedure, but to provide options to deal with rare circumstances.
d. Incumbent tenured/tenure-track faculty members in the discipline shall be advised of and consulted regarding the proposed market pay component of a salary offer before that offer is extended to a prospective faculty member.
6. Market Pay Adjustments for Incumbent Faculty:
a. All market pay adjustments require approval of the provost. The college dean shall justify market adjustment recommendations on the basis of uniform guidelines and convincing data.
b. Market pay adjustments shall be considered only for faculty members who possess the minimum required credentials for the discipline. These credentials require approval by the provost as described in Market Discipline Designation.
c. Faculty members who receive a market pay adjustment and who continue to possess the minimum required credentials shall receive an adjustment in market pay. The increase in total salary (less merit) shall not exceed the percentage change in the applicable benchmark salary (unless the benchmark salary declines). In disciplines where benchmark salaries rise at rates greater than or equal to the annual across-the-board increase in base salary, the adjustment in market pay shall result in a total salary (less merit) consistent with the benchmark salary for the discipline and rank. In the event that sufficient funds are not available to accommodate all market pay adjustments, market adjustments for each discipline and rank shall be made in equal proportion with respect to the percentage increase in the respective benchmark salaries. In disciplines where benchmark salaries rise at rates below the annual across-the- board increase in base salary, the portion of total salary defined to be a market adjustment shall be reduced (to a potential minimum of zero) such that the total salary (less merit) does not exceed the benchmark salary. However, in no case shall the total salary (less merit) of a faculty member be reduced.
7. Timely information regarding entry market pay and market pay adjustments shall be available to the public on the web.
8. In the event that an incumbent faculty member receives a bona fide offer of academic employment from another institution, the provost may authorize a counter-offer at a salary consistent with the guidelines for base and market salary as specified in these procedures. If a salary adjustment is made, other faculty members in the discipline with equivalent rank and academic credentials shall be considered for a salary adjustment. The university is not obligated to make such counter-offers.
Section 4. Promotion in Rank
1. When promoted in rank, faculty members shall receive the greater of the following:
a. An increase in base salary equal to 10% of the top of the base range for the previous rank,
or
b. A total base salary equal to the minimum of the range for the new rank.
2. When promoted in rank, the increase in total salary (less merit) for faculty members who receive a market pay adjustment shall not exceed the applicable benchmark salary for the new rank.
Section 5. Merit Pay
1. Philosophy
The University of Central Missouri supports the creation and administration of a responsible compensation system that is equitable and provides reasonable compensation for faculty members in all disciplines to ensure that qualified individuals can be employed and retained. As one component of the compensation system, merit pay is to encourage, recognize, and reward continuing excellent faculty performance.
2. Eligibility
All full-time faculty members are eligible to participate in the merit award process. Department Chairs and Associate Deans are not eligible for faculty merit awards. In unusual, exceptional, or ambiguous cases, the University Provost will be the final authority in determining individual eligibility for participation.
3. Merit Pay Criteria and Guidelines
a. Merit pay is recognition of a faculty member's sustained and distinguished performance in the areas of teaching, scholarship, service and/or duties as assigned. Each department shall establish criteria and guidelines for merit pay distribution recognizing performance in these areas.
b. Departmental guidelines may allow for consideration of individual faculty interests and/or the work of faculty teams that support department/college goals.
c. At a minimum, evidence used to determine merit pay distribution will be based upon information provided through faculty annual reports. Although departmental guidelines may include processes for providing additional information, such process should be simple, requiring little additional faculty effort beyond compiling the annual report.
d. Departmental guidelines require approval of the college dean. Each college dean may promulgate additional guidelines for departmental merit pay plans consistent with university procedures.
e. Although merit pay is to be awarded on an annual basis, achievements spanning several years may be considered for recognition.
4. Administration
a. Merit pay awards are a permanent addition to total salary.
b. The university president determines the annual allocation of monies for merit pay awards. The total monies allotted for merit awards shall be divided by the number of university faculty members eligible for merit pay. Each college, Library Services, and Academic Enrichment will receive a pool of merit money in proportion to the number of eligible faculty members in the unit.
c. Department Chairs have the authority and responsibility to determine merit pay awards based on the department's merit pay guidelines after consultation with and approval of the dean of the college. This decision will be made annually. By May 15, each dean will forward information about merit pay awards for the next academic year to the Office of the Provost.
d. Merit pay awards are tracked by the Office of the Provost. The annual salary letter received by each faculty member shall indicate the amount of total salary ascribed to merit.
e. Faculty members may appeal perceived problems with the merit allocation process through the Academic Affairs line of authority (department chair, college dean, provost).
Section 6. Monitoring the Faculty Compensation System
- The Provost's Office shall maintain individual salary data in three separate pay components: base, merit, and market.
- The provost, in consultation with the FS Salary and Fringe Benefits Committee, shall conduct annual reviews of the base salary range and market adjustments to assure reasonable competitiveness for all disciplines. The FS Salary and Fringe Benefits Committee shall report findings and make recommendations to the Faculty Senate. The university shall provide the resources and administrative support necessary for this monitoring.
- The provost, working with the FS Salary and Fringe Benefits Committee, shall undertake periodic studies to detect and remedy salary inequities including those concerning age, race, color, religion, sex, national origin, sexual orientation, marital status, Vietnam Era veterans, and persons with handicaps and disabilities in accordance with the faculty salary equity review process.
- The Provost's Office shall undertake long term studies of compensation for underrepresented groups, formulate recommendations, and advise the university president regarding appropriate courses of action to achieve university objectives for the employment of faculty members in underrepresented groups.
- If an issue regarding faculty compensation arises that is not covered by the Faculty Compensation Procedures or an existing university administrative policy and regulation, the provost, in consultation with the Faculty Senate Salary and Fringe Benefits Committee, shall develop a procedure to address it. This procedure shall be submitted to the Faculty Senate for its review and recommendation to the president. If the situation demands an immediate response, the provost, working with the Faculty Senate Salary and Fringe Benefits Committee, will develop and implement an interim procedure, which shall be submitted without delay to the Senate for its review and recommendation.
Formulas
The classifications of faculty referred to in AP&R Number 4 are defined in the Board of Governors Policy on the Classification of Faculty.
I. Load (full-time faculty)
A. Academic Year
During the academic year full-time faculty members normally teach the equivalent of 24 semester (contact) hours that generate university general fund revenue. Courses designated as other fee categories (e.g., Extended Studies entrepreneurial courses) are not considered to be part of the regular faculty load. Chairs, with the approval of the dean, may reassign a portion of the faculty load to other university duties.
B. Summer Term
Summer teaching assignments are neither guaranteed by the university nor required of individual faculty members. The need and opportunity for teaching assignments varies across department. The maximum load for summer teaching is 9 credits.
II. Overloads (full-time faculty)
Since full-time faculty members have scholarship and service responsibilities in addition to teaching responsibilities, overloads should be arranged carefully so that faculty do not become over extended and can meet their regular responsibilities. Therefore, departments shall hire adjunct faculty whenever possible to cover classes that exceed the capacity of the full-time faculty.
The Provost’s Office distinguishes between two types of overload: those funded out of the general fund and those funded through Extended Studies. Regardless of type, faculty may teach a maximum of one course overload (3 credits) per semester with the approval of the dean. Overloads funded via Extended Studies may be taught by faculty at their election with the chair’s and dean’s concurrence. However, overloads funded via general funds shall only be authorized by the dean when it is impossible or impractical to hire adjunct faculty because of last minute staffing problems due to emergencies or unexpected high enrollment. Deans shall notify the Provost’s Office whenever they approve an overload funded by the general fund. The notification should include a brief explanation consistent with this policy.
Double overloads will only be approved in the rarest circumstances. Such exceptions require approval of the provost.
Formula for calculating overload salary:
- Full-time faculty: overload salary = Acad year salary / 24 * .5 * sem. hours
- Librarians: overload salary = 9-month salary / 24 * .5 * sem. hours,
where: 9-month salary = salary / 12 * 9
III. Compensation
A. Full-time Faculty (Academic Year)
Full-time faculty members; including instructional, tenure track, tenured, and visiting faculty members; are compensated in accordance with the Faculty Compensation & Formulas Policy above.
B. Full-time Faculty (Summer Term)
Department chairs may offer two types of summer teaching contracts to full-time UCM faculty members who are employed on 9-month academic contracts: Regular Summer Contract or Variable Compensation Contract. The type of contract to be offered for each course is determined by the department chair with the approval of the dean.
- Under a Regular Summer Contract, salary is calculated at the rate of 3.3% of the 9-month
academic salary (immediate past academic year) per credit hour.
- Regular Summer Contract = Acad year salary *.033 * sem. hours
For example, for a faculty member with a $60,000 9-month salary teaching a three-credit-hour summer course, the salary calculation would be: $60,000 x .033 x 3 =$5,940.
- Under a Variable Compensation Contract, the minimum salary is calculated as the applicable adjunct faculty rate. This amount will be paid to the faculty member if the course enrollment produces revenue at or below the break-even level. (Note: Courses with zero enrollments will be cancelled and no compensation will be paid to the faculty member.)
As course revenue rises above the break-even level, the compensation paid to the faculty member increases. The maximum salary paid under an Individual Variable Compensation Contract is the Regular Summer Contract amount.
- Variable Compensation Contracts are typically offered to faculty members who desire to teach a course during the summer session that is expected to have low enrollment.
- The decision to offer a variable compensation contract to a faculty member is made by the department chair with the approval of the college dean. There is no minimum expected enrollment level that compels the department chair to offer a variable compensation contract.
- The decision to offer or not to offer a variable compensation contract is made on a case-by-case basis, and may include consideration of the faculty member’s entire summer teaching load, including expected enrollments in other summer courses assigned to the faculty member. The department chair may also consider past enrollment history and other relevant factors in the decision to offer an Individual Variable Compensation Contract.
Example 1: Professor “A” is assigned to teach a course that is expected to enroll 35 students. Professor “A” has also asked (or been offered) to teach a course with a low expected enrollment. The department chair, with the approval of the dean, may offer Professor “A” a Regular Summer Contract for both courses.
Example 2: Professor “B” has asked (or been offered) to teach one or more courses with low expected enrollments. The department chair, with the approval of the dean, may offer Professor “B” a Variable Compensation Contract for one or more of the courses.
d. The decision to offer a course under a variable compensation contract is to be made prior to posting the course to the summer schedule. The faculty member must agree to teach the course under a variable compensation contract before the course is posted.
e. If a faculty member declines the offer of a variable compensation contract, the department chair may choose not to offer the course or to offer the teaching opportunity to another full-time or adjunct faculty member.
C. Adjunct Faculty (Academic Year and Summer Term)
Adjunct faculty are paid per credit hour according to the base rates indicated in this section, below. (NOTE: For Extended Studies rates see Section IV below.)
When exempt employees serve as adjuncts, they must teach the course outside their regular working hours or use vacation time. When market conditions demand, deans may increase the credit hour rate up to an additional $400 per credit hour for adjuncts (excluding retired faculty). However, deans may not pass these costs on to the Provost or Extended Studies. When faculty members teach very large sections (e.g. 150 students), deans may pay a salary rate consistent with the load factors stated in the Academic Policy and Procedure.
Calculation of salary for adjunct faculty (per credit hour):
Adjunct Faculty and Professional Staff
Doctoral degree or equivalent $900
Specialist degree or Master’s degree $700
Bachelor’s degree $600
Retired Faculty
Doctoral degree or equivalent $1,500
Specialist degree $1,400
Master’s degree $1,300
Bachelor’s degree$1,200
IV. Extended Studies Compensation
A. Overload Salary (full-time faculty)
Overload salary = 9-month teaching salary / 24 * course credit hour(s) * .5
Applicable for instruction of catalog course offerings which exceed the instructor’s regular load. In the event that course enrollment is not expected to support payment of the full salary and associated benefits, a lesser salary may be negotiated between the instructor and Extended Studies prior to the beginning of the course.
B. Entrepreneurial Salary See Entrepreneurial Offerings
C. Adjunct Faculty (Academic Year and Summer Term)
Adjunct faculty are paid per credit hour according to the base rates indicated in this section, below. (NOTE: For Extended Studies rates see Section IV above.)
When exempt employees serve as adjuncts, they must teach the course outside their regular working hours or use vacation time.
Non-exempt employees may be hired as adjuncts only with the approval of the college dean and either Graduate Education & Research or Extended Studies... Non-exempt employees must be paid overtime in addition to payment for the course. The college and/or department are required to assume the cost of the additional overtime payment. Courses paid in this manner must generate sufficient tuition revenue to cover all instructional costs. The Provost may grant an exception in circumstances where a course must be offered to serve specific student needs.
Doctoral degree or equivalent $900 per credit hour
Specialist degree or Master’s Degree $700 per credit hour
Bachelor’s degree $600 per credit hour
Revision History: III.C. Compensation
Faculty Compensation Procedures approved by President December 2002
Revisions approved by President September 2007
Revisions approved by President February 2008
Edited by Academic Affairs 2012.
Reviewed by Academic Affairs December 2014.
Edited for web links, formatting and plain language. Approved December 2015.
Edited to remove dean of The Graduate School from III.C. Section 1. 4. d. May 2016.
Revision History: VII.AP&R 4. Load & Compensation
Approved 2000
Edited for web links, formatting and plain language. Approved December 2015.
Removed the following content per the provost and vice president of Human Resources. "It is not permissible to hire non-exempt employees to teach courses due to federal guidelines stating overtime must be paid in addition to payment for the course." January 2017
Added hyperlinks and updated name of School of Graduate and Extended Studies. January 2017
Formulas and amounts per credit hour verified as current practice by Manager of Academic Fiscal Affairs, April 2017.
Revision History: Faculty: Compensation & Formulas
Previously annotated as III.C Compensation. Renamed and merged as Faculty: Compensation & Formulas for alphabetical listing, grammar and spell check, and transitioned into policy library April 2017
Previously annotated as VII.AP&R 4 Faculty Load & Compensation. Renamed and merged as Faculty: Compensation & Formulas for alphabetical listing, grammar and spell check, and transitioned into policy library April 2017.
Non tenure language replaced with instructional faculty language to align with updated BOG 2.2.040 Faculty Classification Policy, February 2018.