Washington University in St. Louis
PAE-11: Sustainable Compensation

The University participates in market salary/wage surveys and, in some cases, purchases surveys that provide data related to pay for benchmark positions. While for staff positions the local and regional market data is the most relevant, for certain staff positions national data is used for comparison purposes. The University annually examines salary/grade ranges relative to market and makes adjustments as appropriate. The goal is to align the midpoint of University salary/grade ranges at the market average for benchmark jobs and, target employee salary and wage levels, for those whose experience and performance warrant, at the range midpoints. The University’s current entry level wage, applicable to its regular workforce is set at $1.75 above the current federal and state minimum wage level.

The University maintains approximately 13,000 employees and approximately 720 contractor employees for whom the campuses represent the primary worksite. These contractor company employees are required to provide “basic services” to members of the Washington University community members.

While we do not specifically consider individual employee need as a compensable factor in our compensation program, we periodically examine our entry level wage with regard to appropriate standards to determine whether or not to adjust. We do utilize market wage and salary data to establish pay rates and salary/grade ranges; our current entry level wage for regular employees is $1.75 above the federal and state minimum wage. Once employed, we base changes in income on performance and changes in responsibilities; and, when appropriate, we will make income adjustments based upon market data and internal equity concerns.

Two of our keystone benefit plans are designed to encourage participation at all levels of pay. To encourage lower paid employees to enroll for health coverage, the University now bases health premium costs on employee income. In addition, the University’s 403(b) retirement savings plan is made available for immediate contribution by the employees . At the completion of two years of service, employees who make the required minimum contribution become eligible for the University’s contribution to the plan. The retirement savings plan contribution requirements are also based upon wage/salary levels to encourage savings for retirement and access to the University’s contribution to the plan The employee cost for employees earning under $30,000 is $5.00 per month; for those earning between $30,000 and $44,999, 3% of pay per month; $45,000 and over, 5% of pay per month.

. In addition, the University subsidizes transportation costs for employees (and students) through the provision of a public transportation pass at no cost, reducing parking expenses for eligible employees while assisting in the mitigation of the campuses carbon footprint.

For those employed by contacted companies, the University has additional measures set in place to ensure appropriate compensation. The requirements placed upon the approximately 17 contractor companies that provide “basic services” to the Washington University community include the payment of an hourly wage of not less than $9.00 per hour to full-time employees and availability of health insurance. The University has also established a relationship with a local clinic to ensure that contractor employees (and their family members) who are not eligible for employer health insurance (and are not required to prove that they are not eligible), have access to up to 10 clinic visits per year, for which the University pays in full. The full-time employees of these contractors are also afforded the provision of a fully subsidized public transportation pass.

2011 was listed as the most recent year in which "total compensation for lowest-paid workers was evaluated to ensure it was sustainable". To clarify, job salary levels and the salary/grade structures are evaluated annually with respect to the market and internal equity, ensuring appropriate standards for our workforce. However, we do not specifically consider individual employee need as a factor in our compensation program.