Staff at Independent Institutions see Salary Freezes and Benefit Cuts
August 26, 2009
According to a new report by Yaffe & Company, "Recession's Impact on Executive Compensation in Independent Colleges & Universities," 67 percent of staff had their salaries frozen, while 9 percent experienced a salary reduction. Most of these adjustments in compensations affected everyone at the institution.
During a recession, freezing salaries is a common method to address budgetary problems. This recession, however, has affected benefits as well. More than half of the respondents reported that their institutions were reducing employees' benefits. One fourth of them are reducing or eliminating retirement employer contributions. Another 27 percent are increasing the employee's share of health benefit costs.
Furthermore, most staff at independent higher education institutions (59 percent) don't have variable-pay plans based on achievement, discretion, or a combination of both. More than one fourth (28%) of the institutions that have a variable-pay plan for employees are suspending such programs, and 15 percent are reducing the maximum award potential.
To see a full copy of the report visit www.yaffeco.com.
- Task Force Urges Regulatory Reform
- Legislators Take Action on Education, Charitable and Research Incentives
- Associations Comment on College Ratings System
- ON-DEMAND: How to Build, Develop, and Support a Compliance Program at Your Institution
- ON-DEMAND: Strategic Tuition Assessment and Tuition Restructuring
- ON-DEMAND: Are Shared Services Right for Your Organization – The KU Journey
- ON-DEMAND: VIRTUAL: 2014 Annual Meeting
- ON-DEMAND: VIRTUAL: Student Financial Services Conference
- ON-DEMAND: VIRTUAL: Higher Education Accounting Forum
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis