TRUSTEES APPROVE 3.5 PERCENT COMPENSATION PACKAGE

	COLUMBUS -- The Ohio State University’s Board of Trustees on 
Friday (5/1) approved a 3.5 percent increase to the salary pool 
for faculty, staff and student employees, effective July 1. 
Individual employees may receive more or less than the average 
increase, based on performance and internal and market equity.

	“Compensation is important and is a priority because it is 
one of the major ways we retain the best faculty, staff and 
student employees,” said William Shkurti, vice president for 
finance.  “We’d like to do more, but this package was the best we 
could do with the resources available.”

	Employee salary increases at comparable institutions are 
expected to average between 3.5 percent and 4 percent over the 
next 12 months. 
	
	“We looked at where faculty and staff are in competitive 
markets,” said Larry Lewellen, acting vice president for human 
resources.  “We won’t advance, but 3.5 percent will help us 
maintain our position and help us to reward performance, which is 
a high priority.”

	Shkurti said the university would like to move ahead in the 
rankings during the next several years, but future finances are 
always uncertain.  “Looming in the background is the outcome of 
Issue 2,” he said.  Issues 1 and 2 will not have a direct impact 
on the university’s operating budget in fiscal 1999, but could in 
succeeding years. 
	
	In fiscal 1998, Ohio State’s 3 percent increase caused it to 
lag behind the average 5.1 percent increase of benchmark 
institutions.  However, the effects of increases of 4 percent, 5 
percent and 5 percent in the three previous years are still being 
felt, with faculty and staff in general still close to market and 
peer averages.

	Based on 1997-98 figures, Ohio State’s overall average 
faculty salary is 1 percent below the benchmark average of 
$65,170.

	Staff salaries for 1997-98 are 1.9 percent below market for 
managers and administrators, 6.6 percent below for professional 
positions, and 9.2 percent below for paraprofessional and 
technical positions.  For clerical and secretarial positions, 
Ohio State is 2.2 percent above market and 10.4 percent below 
state government levels.
	
	When benefits are included for a total compensation package 
comparison, managers and administrators are 1 percent above 
market, professionals are 3.8 percent below market, and 
paraprofessional and technical staff are 6.5 percent below 
market.  Clerical and secretarial staff are 5.3 percent above 
market and 10.4 percent below state government.
	
	The raise process at Ohio State has been merit-based since 
1994.
	
	“There is a tendency to look at this as an annual process,” 
said Edward Ray, acting provost, “but it is important to keep in 
mind the long-term trend, which is how we are doing over a series 
of years.  The university’s administration is committed to 
competitive compensation levels for all our faculty, staff and 
student employees.”
	
	Separate compensation packages are being developed for 
University Hospitals and for employees under collective 
bargaining contracts.

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Contact:  William J. Shkurti, Finance, (614) 292-9232
		Larry Lewellen, Human Resources, (614) 292-3456
		Edward Ray, Academic Affairs, (614) 292-5881