Data shows University salaries are largely competitive

Data from Metropolitan State University of Denver’s recent Compensation Equity Study show that, overall, University salaries are competitive with peer institutions; however, outlier salaries and compression clusters exist. Study vendor Salary.com recommended multiple ways for the University to support employees and remain competitive, including adjusting low-outlying salaries, simplifying the existing staff salary structure and establishing faculty salary structures. 

The study kicked off last fall to evaluate the University’s pay competitiveness and internal pay equity. Employees will get a first look at findings at Compensation Equity Study Town Hall events Thursday.

“Our goal (for the study) was to enhance transparency, keep the University in compliance with pay-equity laws and help achieve the 2030 Strategic Plan Pillar V goal to become Colorado’s most desired place of employment,” said Stacy Dvergsdal, associate vice president of Human Resources. “The study also probed for potential pay disparities related to legal sex and race/ethnicity, while accounting for skill level, experience and other job–related factors.” 

Primary findings 

• On average, faculty compensation aligns closely with similar positions at a new peer cohort of 81 comparable institutions, with a market index of 96.7% for full-time faculty positions across all ranks and academic disciplines. The majority of faculty salaries fall within +/-20% of the peer cohort median. 
• For staff, the market index across all benchmarked positions is 98.8%, meaning the vast majority of staff positions fall within a competitive range, +/-20% of the median market reference point. 
• Across all faculty and staff benchmarked jobs, approximately 8% of positions were found to be low outliers, or more than 20% below the market median.  
• The study identified isolated clusters of compression (instances of little difference in pay between employees regardless of skill, ability and experience).   
• The study found no conclusive or systemic evidence of statistically significant pay-equity issues that negatively impact employees based on legal sex or race/ethnicity. 

Making data-driven improvements 

MSU Denver will use resources set aside in the 2024-25 budget to initiate pay adjustments for low-outlying professional-staff positions this fall.

“MSU Denver is committed to raising salaries for those employees whose pay falls below the minimum of their pay range in the new structure,” said Chief Operating Officer Larry Sampler. “Approximately 70 staff members whose salaries were identified as low outliers will be elevated into the competitive range this fall.”  

“To avoid further compression issues, faculty pay structures must first be established before pay adjustments are initiated,” Provost Laura Niesen de Abruña, Ph.D., added. “Academic Affairs will collaborate with Salary.com, faculty and MSU Denver’s Total Rewards team to establish salary structures with competitive pay ranges in the coming year, after which adjustments for low-outlying faculty members will be initiated.” 

Next Steps:   

In addition to adjusting low-outlying salaries, simplifying the existing staff salary structure and establishing faculty salary structures, the Total Rewards Team and Academic Affairs will also:

• Review ongoing compensation-administration processes.  
• Implement new technology to increase efficiency and transparency of the faculty-compensation process and sustain pay equity.  
• Develop resources, tools and information for the campus community to better understand the University’s salary structure.  

“MSU Denver offers something that most employers don’t: a mission-driven career where every day you know you are making a difference for our students and our state,” Sampler said. “This is a place of purpose. We care about employees and are always seeking to offer benefits in addition to salary that enhance the employee experience.” 

How employees can continue to support the process 

To ensure that the University has the most comprehensive data possible, employees should complete all possible information in Workday, including gender identity and race/ethnicity, so MSU Denver can optimally monitor pay equity. This data is anonymized and never shared.   

“Additionally, turnover among staff members declined to 12% last fiscal year, and turnover among faculty is just below the College and University Professional Association’s benchmark of 3.4% at 2.88%,” said Dvergsdal. “There is an indication that employees appreciate the University’s competitive Total Rewards package and the desire to work for a mission-driven organization.” 

Amanda Berry, director of Total Rewards, added that the University is even more competitive when the overall compensation-and-benefits package — Total Rewards — is considered. The Total Rewards package offers employees a tuition-remission benefit, 11% retirement contribution and flexible work and covers 76% of health-insurance premiums, the second-highest level of coverage among members of the Colorado Higher Education Insurance Benefits Alliance. 

Dig deeper into key findings:  

Faculty:  

Salary.com researchers compared faculty members to a peer cohort of 81 other institutions that match MSU Denver’s academic profile. They found that, on average, MSU Denver faculty compensation closely aligns with similar positions at comparable institutions, with an overall market index of 96.7%. The majority of full-time faculty positions surveyed across all ranks and academic disciplines fall within +/-20% of the market median reported by the University’s peer cohort. 

• Adjunct-faculty pay rates on a per-credit-hour basis are competitive with available market data. 
• Approximately 4% of faculty positions were found to be low outliers, meaning they were more than 20% below the market median.  
• Isolated clusters of compression were also identified, meaning instances of little difference in pay among employees regardless of skill, ability and experience.   

Staff:  

• Researchers compared staff roles to those at 61 other higher-education institutions, as well as similar positions in other industries in metro Denver. They found that, overall, MSU Denver’s staff salaries are very competitive, with an average market index of 98.8%. For professional staff, 81% of jobs fall within the highly competitive range defined as within 10% of the market median. 
• Approximately +/-10% of professional-staff positions (78 of 759) were found to be low outliers, meaning they were more than 20% below the market median. 
• Additionally, isolated clusters of compression issues were also identified, meaning instances of little difference in pay among employees regardless of skill, ability and experience.