REGENTS REPORT

South Dakota Higher Education: Good Investment.Great Future. NO. 56, 11/15/96

Salary Policy

Equity for Regental Faculty and Exempt Employees

The quality of higher education for our students is in large part dependent upon the quality of faculty. It is important to recruitand retain high calibre faculty that can provide the best instruction for South Dakota students. South Dakota continues to rank ator near the bottom of various salary surveys for faculty in higher education, and low salaries hinder efforts to recruit and retain quality faculty. State government, faced with a similar salary lag, initiated an effort known as movement to midpoint in order to enhance the competitiveness of its Career Service Act employees. This effort has been very successful in bringing salaries to a more competitive position. University faculty and staff who are exempt from the Career Service Act have not participated in the mid-point adjustment salary policy.

A LOOK AT THE DIFFERENCE

The following chart shows the salary policy percent increases from FY93 to FY97 for Career Service Act employees with mid-point adjustments, as well as for Board of Regents faculty and CSA exempt employees. Over the last five years, movement to mid-point has meant a 12.5% difference in salary enhancement between the two groups.

SALARY POLICY PERCENTAGE INCREASES: FY93-FY97 CSA AND FACULTY/NON-FACULTY CSA EXEMPT EMPLOYEES

SOURCE: Board of Regents

HUMAN RESOURCES IN THE BOARD OF REGENTS BUDGET REQUEST

Most CSA employees have received the below mid-point salary adjustments that have been funded by the Legislature from FY92 to FY97. The movement to mid-point salary policy has acted as an effective mechanism for moving salaries closer to market levels. In an attempt to reduce the lag in faculty and non-faculty CSA exempt salaries, relative to both CSA employees and other private and public sector employers, the Board of Regents' FY98 budget request calls for just under $1 million for salary equity. The current market lag in faculty salaries adversely impacts the ability of South Dakota's public universities to compete with other universities, as well as other public and private sector entities. In FY90, the Board of Regents developed a faculty salary needs assessment model using the Oklahoma Salary Study. The Oklahoma study samples salaries at various universities across the nation-including South Dakota's. Under the assessment model, the salary of South Dakota's faculty were compared to 90% of the average amount in the Oklahoma Salary Study for various levels and disciplines. The graph below shows the historical market lag for faculty and CSA employees between FY90 and FY96.

SALARY LAG RELATIVE TO MARKET VALUE: FY90-FY96 CSA EMPLOYEES AND REGENTAL FACULTY

SOURCE: Board of Regents, Bureau of Personnel

CONCLUSION

The Board of Regents recognizes the importance of human resources to the quality and effectiveness of all state services, including public higher education. The movement to mid-point salary policy for Career Service Act employees has worked well to enhance their competitiveness in the market. A similar initiative for Board of Regents faculty and non-faculty CSA exempt employees would lessen the gap between their current salaries and competitive rates offered in other public and private sector jobs.