An external study of compensation practices across Metropolitan State University of Denver’s professional-faculty-and-staff spectrum has identified two peer cohorts to guide compensation analysis.
The Compensation Equity Study, which began last fall, is evaluating the University’s external competitiveness and internal pay equity. It also aims to enhance transparency, keep the University in compliance with pay-equity laws and help achieve the 2030 Strategic Plan Pillar V goal to become Colorado’s most desired place of employment.
Study status
Professional staff: Consultants and internal teams have completed the Discovery/Data Gathering and Analysis phases and are entering Data Inspection and Delivery.
Faculty: Analysis is still underway, and Data Inspection and Delivery should begin in May.
Measuring against peer institutions
External consultant Salary.com is leading the four-phase project, which includes measuring MSU Denver compensation rates and practices against higher-education peers and other organizations with which the University competes in recruiting faculty members and professional-staff members. Consistent with best practices, using different higher-education peer groups for professional staff vs. faculty members and broad industry data provides an accurate reflection of competitive salaries for those positions, explained Stacy Dvergsdal, associate vice president of Human Resources.
“MSU Denver’s peer cohort includes direct competitors and comparably sized higher-education institutions that share similar institutional and academic profile,” Dvergsdal added. “It includes organizations with which the University competes for talent to ensure appropriate data comparisons.”
As is standard, staff peer-group data is more locally focused and includes non-higher-education organizations, said Amanda Berry, director of Total Rewards. The study analyzes thousands of unique job titles across more than 200 industries to account for the University’s diverse professional-staff job functions.
Meanwhile, the faculty peer cohort includes public and private universities with comparable Carnegie Classification designations and institutions that have similar programs, operating revenues and student bodies.
Accounting for the Denver economy
As cost of labor, local market conditions and other factors can vary significantly across geographic areas — and impact compensation — the study also considers metro Denver’s economic climate. Due to the frequent and at times vast changes in cost of living, cost of labor is standard in salary benchmarking to ensure that employees are paid more consistently and are better insulated from the volatility of the moment, said Larry Sampler, chief operating officer.
“The Denver area simply has a higher cost of living and cost of labor compared to many other parts of the country,” Sampler said. “The study accounts for these economic conditions and how they compare to MSU Denver’s peer institutions.”
See the FAQ for information on peer cohorts, cost of labor/living data and differentials and more.
Are pay increases on the horizon?
“The big question we’ve gotten throughout this process is ‘Will this study result in pay increases for employees?’” Sampler said. “The answer is ‘Not necessarily.’ Until the study is complete, it’s premature to draw any conclusions about any potential pay increases.”
Sampler explained that the current focus remains on evaluating the University’s compensation structures to ensure that levels are equitable, consistent and competitive. While results may suggest that some pay increases may be warranted, any specific changes to compensation are yet to be determined.
Next steps
Study data will be used to determine compensation priorities and build a foundation for a future compensation structure that is strategic, sustainable and equitable, Berry said.
All initial analysis should be complete by the end of the spring semester. Conversations and further study will continue throughout 2024 to determine a course of action based on findings and recommendations from Salary.com. Next steps include:
- Reviewing compensation policies and practices across the University to ensure that pay is administered consistently and fairly.
- Establishing procedures and practices to routinely monitor pay equity.
- Ensuring that pay practices support diversity/equity/inclusion efforts and the 2030 Strategic Plan.
Read the Compensation Equity Study FAQ to learn more and stay tuned to the Early Bird for updates.