Faculty Compensation Project
Huron Consulting Group was employed to conduct a comprehensive market analysis regarding compensation for faculty positions, beginning in October 2023. In fall 2024 and summer/fall 2025, the implementation will focus on aligning faculty pay based on the compensation project and a comprehensive market analysis.
Project Methodology
The project methodology involved these four steps:
- Collecting benchmark data from two leading faculty compensation surveys, representing 82 institutions*
- Validating approach by working with academic colleges on the U of A campus to identify Classification of Instructional Programs (CIP) codes for each appointed faculty member** based on teaching area and primary research area.
- Comparing faculty compensation to market data for each academic rank and area. View an example of how benchmark data from the 82 institutions sampled was used to define a market reference point for the U of A.
- Defining a path forward by identifying faculty whose salary fell below the salary midpoint based on academic rank and area.
*The university's staff project used a similar peer set of 84 institutions. The University of Cincinnati and Ohio State University did not provide survey data for faculty.
**Faculty with administrative titles of Chancellor, Vice Chancellor, Vice Provost, Dean, and Associate Dean were out of scope for the project.
Results and Implementation
The faculty compensation project and market analysis resulted in the following:
- Tenured professors and instructors make up the majority of individuals with salaries identified as below market. View the market index for current state faculty by rank and tenure status.
- Compensation increases for academic rank promotions were adjusted based on market data. See the following promotion increases that were effective July 1, 2024.
- Market rates for faculty were established using CIP codes. Each academic rank within each CIP code has a separate market rate (the midpoint). See example of market rates across faculty ranks for a sample discipline.
- Market adjustments for faculty, which include the 3% Cost-of-Living Adjustment (COLA) increase added to their base pay effective earlier this year, were determined by how close the faculty member’s compensation is to the established market rate. To see how the market adjustment is being implemented for faculty, view the chart below and the following example scenarios.
Timeline
The following timeline shows the implementation process and when market compensation adjustments will be applied for affected faculty.
Step 1 – June 2024
Finalization of Faculty Mapping to Classification of Instructional Program (CIP) codes for each department in conjunction with college Associate Deans.
Step 2 – July/August 2024
Academic deans review and approve proposed market compensation adjustments, which will consider prior annual performance evaluations.
Step 3 – August 2024
Additional market compensation adjustments finalized after COLA and/or promotion adjustments have already been applied.
Step 4 – September 2024
Academic colleges share adjustment information with affected faculty, clearly communicating all adjustments received.
Step 5 – October 2024
Affected faculty receive 50% of market compensation adjustments in Oct. 15 payslips, calculated back to July 1 for 12-month faculty or Aug. 12 for 9-month faculty.
Step 6 - July 2025
Affected faculty will receive the second 50% increase in July 2025 for 12-month faculty or August 2025 for 9-month faculty.
Frequently Asked Questions
About the Project
The faculty compensation project and market analysis resulted in the following:
Tenured professors and instructors make up the majority of individuals with salaries identified as below market. View the market index.
Compensation increases for academic rank promotions were adjusted based on market data. See the following promotion increases that were effective earlier this year. Market rates for faculty were established using CIP codes. Each academic rank within each CIP code has a separate market rate (the midpoint). See example of market rates.
Market adjustments for faculty, which include the 3% Cost-of-Living Adjustment (COLA) increase added to their base pay effective earlier this year, were determined by how close the faculty member’s compensation is to the established market rate. To see how the market adjustment is being implemented for faculty, view the chart below and the following example scenarios.
While the faculty and staff compensation projects were both performed by Huron Consulting Group, the faculty compensation project used different data than the staff compensation project to establish market pay rates and market adjustments.
The faculty compensation project compared salaries for faculty positions at the University of Arkansas to 82 peer institutions across each academic discipline and rank. The faculty compensation project utilized CUPA-HR (College and University Professional Association for Human Resources) and OSU (Oklahoma State University) datasets.
The staff classification and compensation project compared staff salaries across each industry and across peer institutions using data from CUPA, Mercer and the Northwest Arkansas Human Resources Association (NOARK). The staff project also created staff job profiles across the university and mapped those job profiles to market pay rates based on CUPA, Mercer and NOARK benchmarks.
The two projects are different because different datasets needed to be used to conduct each project. While both projects used CUPA data, the staff project compared staff salaries to market data across each industry and across peer institutions. Faculty positions are specific to each academic field of study, and therefore, the faculty compensation project was only able to compare faculty salaries across peer institutions in relation to each field of study and academic rank (rather than industry). As a result, the data for faculty did not include minimum and maximum median salaries like the staff data.
Yes. The U of A has a training committee that is working on defining phrases and terms associated with the project and will implement them as part of future training and tailored education sessions for different subsets of employees (supervisors, budget officers, etc.).
About Faculty Market Adjustments
The university is aligning faculty pay based on the compensation project and a comprehensive market analysis. Affected faculty are expected to receive 50% of market compensation adjustments in Oct. 15 payslips, calculated back to the beginning of their appointment period, either July 1 for 12-month faculty or Aug. 12 for 9-month faculty. These faculty are expected to receive the second 50% increase in July 2025 for 12-month faculty or Aug. 2025 for 9-month faculty.
Please note that the market adjustment for faculty includes the 3% Cost-of-Living Adjustment (COLA) increase added to their base pay effective earlier this year.
The faculty compensation project used the market rate (the average of faculty salaries at the rank and discipline of the faculty member from 82 peer institutions) as a starting point to establish market adjustments to faculty salaries. Market adjustments for faculty, which include COLA, are being calculated based on the distance the faculty member is from the market rate. To see how the market adjustment is being implemented for faculty, view the chart below and the following example scenarios.
Please note that the market adjustment for faculty includes the 3% Cost-of-Living Adjustment (COLA) increase added to their base pay effective earlier this year.
Eligible faculty received a market adjustment provided in the form of a 3% Cost of Living Adjustment (COLA) to their base pay earlier this year. These adjustments were effective July 1 for 12-month employees, and Aug. 12 for 9-month employees. The increase was calculated on the faculty member's base salary as of June 30, 2024.