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OF RECORD: Salary Guidelines for 2012-2013

April 10, 2012, Volume 58, No. 29

The University of Pennsylvania’s merit increase program is designed to recognize and reward the valuable contributions of faculty and staff to the University’s commitment to the highest levels of excellence in teaching, research and administration by paying market competitive salaries in a fiscally responsible manner. The merit increase pool for fiscal year 2013 is based on market trends and economic conditions. With this in mind, the following guidelines are recommended.


Faculty Increase Guidelines

Presented below are the standards for faculty increases that the deans are asked to follow. The deans may give the department chairs their own guidelines at the school level regarding available resources.

• The minimum academic salary for new assistant professors will be $60,700.

• Merit increases for faculty should be based solely on performance as evidenced by scholarship, research, teaching and service to the University and the profession. As in previous years, there will be no cost-of-living increase for continuing faculty.

• The aggregated merit increase pool for faculty may not exceed 2.9 percent. Salary increase recommendations that are below 1.0 percent for non-meritorious performance, as contrasted with general limits applied to an entire class of faculty, must be made in consultation with the Provost. Likewise, salary increases that exceed 5.0 percent due to market conditions must also be made in consultation with the Provost. Deans may wish to give careful consideration to salary adjustments for faculty who have a strong performance record but whose salaries may have lagged behind the market.


Staff Increase Guidelines

Presented below are the merit increase guidelines for July 1, 2012.

• This year’s aggregate salary increase pool is 2.9 percent with a range of zero to 5.0 percent. Merit increases should not exceed 5.0 percent. Some Schools and Centers may have financial constraints that affect the salary increase percentage that can be awarded, resulting in a merit increase pool of less than 2.9 percent. Administrators of these Schools or Centers will communicate this information separately.

• Monthly, weekly and hourly-paid staff members are eligible for a merit increase if they are regular full-time, regular part-time or limited service status employees, and are employed by the University on or before February 29, 2012. The following groups are not covered under these guidelines: student workers, interns, residents, occasional and temporary workers, staff on unpaid leave of absence, staff on long-term disability and staff who are covered by collective bargaining agreements.

• The merit increase program is designed to recognize and reward performance. The foundation of this program is the Performance and Staff Development Plan. Salary increases should be based on performance contributions within the parameters of the merit increase budget. The performance appraisal system documents each employee’s performance and contributions, and establishes performance goals for the new fiscal year. All employees must receive a Performance and Staff Development Plan for the next review cycle whether or not they receive a merit increase. Schools and Centers are requested to submit performance appraisals by June 1, 2012. The Division of Human Resources’ Staff and Labor Relations team is available to discuss performance management issues.

• Merit increases should average no more than 2.9 percent and may average less if a School or Center establishes a lower percentage merit pool based on financial or other considerations. The aggregated salary pool within a School or Center may not exceed 2.9 percent regardless of performance rating distributions. Performance expectations should be raised each year as employees grow in experience and job mastery. Performance ratings and raises should reflect a normal distribution for all employees. Employees with unacceptable performance are not eligible for a merit increase.

• The University’s salary ranges have been increased effective April 1, 2012. All staff salaries must be at or above the minimum of their respective grades as of April 1, 2012.

• There will be no discretionary bonuses, consistent with the cost containment guidelines promulgated in December 2008. The Division of Human Resources’ Compensation office is available to discuss specific merit increase parameters with Schools and Centers. Staff and Labor Relations team members are available to discuss performance management issues.

—Amy Gutmann, President 
—Vincent Price, Provost
—Craig Carnaroli, Executive Vice President

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