The results of a compensation structure study requested by the Professional and Scientific Council show that Iowa State’s faculty and administration salaries are highly competitive compared to those of other institutions.

An evaluation of the compensation structure at Iowa State was last completed in 1993, and the P&S Council felt it necessary to have a study that compared the university’s salary structure with other institutions’ conducted. Elizabeth Hoffman, executive vice president and provost, informed the P&S Council of the study results in the Campanile Room of the Memorial Union on Thursday afternoon.

“The report results show that Iowa State’s base salary levels are within competitive market ranges,” she said.

Study results show Iowa State’s salaries are 3 percent above market levels at the education level, 4 percent above in the nonprofit job category and 6 percent below pay average in industrial jobs.

Towers Perrin, a global professional services firm, was hired in summer 2007 to conduct the study to assess how Iowa State can improve its salary structure to recruit, retain and motivate employees across the job market. The study focused on “benchmark” positions of a multitude of individuals, such as academic advisers, auditors and IT personnel.

“We wanted to make sure employees at the university were put in positions that were competitive based on performance, length of time and type of market,” Hoffman said. “We weren’t specifically taking into account individual skills and characteristics.”

The Towers Perrin study proposes a new salary structure in which a numerical system is used to determine pay grade.

Level-one staff members would fill entry-level positions within the university, while level 12 positions would include those of university president and the highest administrators and command uncapped salaries.

At the base level (1), the study suggested a midpoint salary of $36,000, while mid-level (6) positions had a suggested salary of $69,300. The highest level (12) had a suggested salary average of $131,000.

The Towers Perrin study suggested that Iowa State focus on adding positions just below the highest level to maintain competitiveness in the market of higher education positions.

“Our total compensation is extremely competitive, and our benefits package is better than most other universities,” Hoffman said. “Our medical and dental insurance coverage provides a great incentive for attracting university faculty, along with the friendly environment in Ames, and the inexpensive cost of living compared to other higher education institutions.”

The council will have 30 days, starting March 7, to comment on the implementation of the suggested salary structure outlined in the Towers Perrin report. If implemented, those holding university positions who earn salaries below the minimum amount given by the numerical scale would receive an increase by January 2009. Further discussion by the council will take place throughout the month of March until the April 7 deadline.

“President Geoffroy and I will be accepting comments and questions regarding the Towers Perrin report and will make the decision in April to accept or reject implementation and, subsequently, where to slot positions in the scheme,” Hoffman said.

The P&S Council, presided over by Lynne Mumm, technical specialist in the Institute for Physical Research and Technology, accepted reports from numerous council members and directed discussion on several new items of business.

One item included the proposal of a program granting performance pay for nonorganized professional and scientific employees. Virgil Schmitt, field specialist for ISU Extension, addressed the council regarding the program proposal.

Currently, an individual considered for the Exceptional Performance Pay Program would be given a lump-sum payment in the range of $500 to $2,500 once during a calendar year. To be eligible, candidates must currently be professional and scientific employees who have held a position at Iowa State for more than one calendar year and have made significant contributions or exhibited extraordinary effort in their areas of work.

“The individuals who compiled this document have spent considerable time and effort, and all consideration is appreciated,” Schmitt said.

The proposal will be voted on in April and subsequently forwarded to President Gregory Geoffroy for final consideration.

Kevin Kane, program manager for IT Services and academic technologies, commented on a new leadership program initiative.

“We are working on establishing a program that will offer training experiences for faculty in leadership,” Kane said.

Endorsed by Hoffman, the program will be offered through the Emerging Leader’s Academy and endorse sustainable and adaptable leadership skills.