Given the flexibility of the new budget model and the challenges of state budget cuts, unit leaders have chosen the timing of annual salary increase and performance review cycles

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Thursday, October 18, 2018

University of Iowa deans and vice presidents have each chosen whether annual salary increases for faculty and staff in their unit will occur on July 1 or Jan. 1. University administrators say that the adoption of the new university budget model has created more flexibility for unit leaders to choose a timing for salary increases that works best for their business needs.

Historically, annual salary increases for UI employees have occurred on July 1, but this year the administration delayed salary decisions until January—with the exception of UI Health Care—to get a clearer picture of tuition revenue following the September enrollment count and state funding following the December meeting of the Iowa Revenue Estimating Conference. The university has suffered back-to-back mid-year budget cuts, forcing a moratorium in project construction and the closure of several centers.

In April, university administration announced a new budget model that provides deans and unit vice presidents with more control over their respective budgets. Providing increased flexibility on the timing of annual salary decisions further empowers unit-level decision making.

Deans and vice presidents have each adopted either a Jan. 1 or a July 1 salary increase cycle. Colleges or divisions that move salary increases to Jan. 1 will also adjust the timing of annual performance reviews, which will still be used to inform salary decisions. University Human Resources will work with campus units to assist transitions. Future changes to a unit’s salary increase cycle will require approval from university leadership.  

The university will continue to honor all contracts, including with collective bargaining units, and the timing of performance reviews for Service Employees International Union (SEIU) staff and American Federation of State, County and Municipal Employees (ASFCME) staff will not be affected.

This year’s salary increases remain scheduled for Jan. 1. Salary increases for individual faculty should reward performance and address any competitive marketplace conditions.

More information on annual salary increases is available at the University Human Resources page on pay practices.

More information about performance reviews is available in the university Operations Manual and the University Human Resources website.