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Stanford Report, May 10, 2000

Vantage Point: 'Very competitive' staff salary program expected

BY PEGGY HIRAOKA

In January of this year, we began the rollout of our new job classification process, which is a more efficient way of evaluating jobs, and our new pay structure, which is a more contemporary way of assessing and establishing competitive levels of pay. The rapidly changing employment market has had a material effect on our ability to retain and recruit over the past five years. The redesign of our staff compensation system to a more efficient, market-sensitive system was not an option, but a necessity.

Equally important, however, is the funding of our staff salary program for the coming year. In their March 27 letter to deans and vice presidents, Provost John Hennessy and Mariann Byerwalter, vice president for business affairs and chief financial officer, said "staff salaries were made the highest priority in this year's budget allocation." As a result of this emphasis, we will have a very competitive staff salary program for fiscal year 2001, which begins Sept. 1, 2000.

Consistent with the new pay structure, the 2000-01 Staff Salary Program is a market-based program with different targets allocated or authorized for and by each school or vice presidential area. As in years past, schools and vice presidential areas develop and administer their own salary delivery guidelines, which relate to their performance ranking systems and budgets, within the university's program guidelines. As a result of each school/vice presidential area's unique needs, there will be variations in program utilization by schools and business units.


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Departments are currently preparing 2000-01 salary increase proposals for their staff employees. The time frame for setting and announcing salaries is set internally by local areas. If you have any questions about the Staff Salary Program or related information, contact your supervisor or human resources officer.

We all should recognize that no salary program is a panacea. And, as a not-for-profit entity, Stanford will have unique challenges in competing for key talent in the Silicon Valley. However, within the value system we know as Stanford, we must change with the times. Standing still is simply not an option. The new pay structure, job classification system and the 2000-01 salary program are changes that will help to provide the university with a more competitive and contemporary system for rewarding those who contribute to the high level of excellence for which this university is known. Combined ultimately with a stronger performance management process, these changes will create a stronger link between pay and performance.

Note: The 2000-01 Staff Salary Program applies to exempt staff and non-exempt non-bargaining unit staff.

If you have questions about the Staff Salary Program or other information from this article, please contact your supervisor or human resources officer, or go to the Human Resources website at http://hrweb.stanford.edu. SR

Peggy Hiraoka is outgoing Director of Human Resources.