Oregon State University
PAE-11: Sustainable Compensation

OSU applies several tools and factors in assessing, evaluating and creating a sustainable employee compensation program. 1) Compensation for union-represented employees is set through a collective bargaining process, which includes assessment of market factors and trends in wage adjustments. Salary surveys are conducted approximately every two (2) years by the Oregon University System (OUS) against market rates for both pay rates and total compensation. 2) Faculty compensation is assessed and updated based on market and peer comparators. Additionally, compensation survey tools are used to assess the need for and amount of wage adjustments when university-wide across-the-board increases are granted, or when an individual faculty member’s compensation is increased for equity, retention, compression or merit needs. Compensation comparisons are conducted on varying timescales, dependent on operational cycles and needs. 1) Oregon University System market surveys are conducted approximately every (2) years and compare OUS salaries to similar local and regional markets. 2) OSU salary comparisons with other OUS institutions are conducted at least annually, and more frequently as needed. 3) OSU salary comparisons with OSU’s Peer Institutions for administrative positions occur prior to university-wide increases. 4) Collective bargaining for union-represented employees generally occurs biennially. Salary comparisons and a market survey inform the compensation adjustment discussions as part of the negotiation process. Additionally, State of Oregon and Oregon University System laws, rules and guidelines overlay OSU practices. The institution makes every effort to operate responsibly within these parameters. OSU is well within meeting the Oregon minimum wage rules and the institution ensures that employees of contractors are compensated according to Oregon Bureau of Labor and Industries standards and regulations. On a local level, OSU considers local governmental organizations and their compensation practices when setting compensation. For example, the City of Corvallis has a Living Wage Ordinance. This ordinance is one of many factors considered when OSU reviews its compensation program and philosophy. Under this ordinance, the City’s living wage rate as of July 1, 2012 is $12.11/hour. In comparison, the low end of the pay scale for a union-represented OSU employee is around $17/hour. This minimum rate includes salary and employer-paid insurance only; it’s does not include additional benefits which are part of a total compensation package, such as paid sick, vacation and personal leave nor does it include other university-related benefits like tuition discounts and access to reduced-cost events and services.