Virginia Tech
PAE-11: Sustainable Compensation

Each year Virginia Tech reviews the poverty line statistics from the National Department of Health and Human Services and determines where we are relative to this benchmark. Where budget allows, we set our minimum hourly rate at the rate for a family of three per the data from Health and Human Services. For individuals paid under the university’s temporary employment service contracts, the university’s contracts specify that the minimum hourly rate for the lowest paying job type is no lower than the minimum hourly rate for the comparable job type within the university. When these contracts are re-negotiated Human Resources adjusts the minimum rate as needed based on any changes in the university compensation plan.

The total number of employees excluding contractors is 7,320. This number fluctuates with peak employment occurring during the fall and spring semesters. We have excluded contractors who are not on our payroll because we do not have the opportunity to influence what they are paid, with the exception of individuals hired through temporary employment service contracts. Unlike many universities, our dining services is not contracted out so a large number of entry level jobs that might otherwise be contractors at other schools are employees at Virginia Tech. The number of employees excluding contractors that the institution ensures earns sustainable compensation is 6,820. Virginia Tech increased the pay band minimum for pay bands 1 & 2 in May to ensure that our entry level of pay for salaried employees was at least $9.50 an hour. Along with this was a recommendation for wage employees to be targeted at $9.00 an hour or higher. These levels of pay are considered very competitive for our geographic region and, along with the benefits provisions for our salaried employees help ensure a sustainable wage.