Change in Employee Compensation

How does the CEC work?

Below are a few examples of how CEC increases are calculated for different types of employees, based on the FY24 plan components outlined above. By direction of the State of Idaho and Idaho Code, performance and market comparisons must be factors in our CEC matrix and distribution plan (examples are provided below).

Calculation #1 - Determination of Base Pay

Every employee is paid an annual salary or an hourly rate. An employee’s base pay is the rate used to determine the FY24 CEC increase, based on the CEC components described above. The rate used to calculate an employee’s CEC increase will be the base rate as of December 31, 2022, unless the employee salary has changed based on promotion, demotion, or salary increase prior to CEC implementation date. Administrative stipends, interim salary rates, and/or other temporary adjustments in pay will not be factored in when calculating a base rate of pay.

Calculation #2 - Determination of Market Ratio

Compa-Ratio (classified staff)
All classified staff positions are assigned a pay grade. Pay grades are based on type of work performed, along with decision making, budgetary and supervisory responsibilities, etc. Each pay grade has a “policy” rate, which is the midpoint wage for each pay grade. The percentage that an hourly wage is away from the midpoint range is called the “compa-ratio.”

Example: Benny Bengal is a classified employee with a pay grade “J,” which ranges in rate from $19.69 to $39.38 for FY24. Benny’s hourly rate is currently $21.59. The “policy” (midpoint) rate for pay grade J for FY24 is $26.25. Therefore, Benny’s compa-ratio is 82.2%; current pay rate divided by “policy” (midpoint) hourly rate.

Market-Ratio (non-classified staff and faculty)

Current market survey data among ISU’s peer institutions were reviewed and compared to faculty and non-classified staff positions by discipline, rank and title. Based on this analysis, positions were slotted in a comparison group category and assigned a salary market ratio. These data were reviewed collaboratively by HR and division/college leadership to ensure appropriate alignment with survey market data according to discipline and role, and that an appropriate salary market ratio was assigned to each position.

Example: Janey Joy is an Associate Professor in Teacher Education. Janey’s current annual base salary is $64,889. The current median salary for an Associate Professor in Teacher Education among ISU’s peer survey group is $72,033. Therefore, Janey’s market ratio is 90%; current salary divided by comparison group median salary.

Calculation #3 - Determination of FY24 CEC increase based on this year’s plan components:

1. Performance/market-based merit increase,
2. Performance/market-based equity increase (includes two calculation components),
3. DHR pay line increase (applies to classified staff only)
4. Faculty promotions/Advancement in Academic Rank

Examples

The following examples show step-by-step calculations (order of operations) to determine overall FY24 CEC increases for different types of employees:

Classified Example:

Benny Bengal is a full-time classified staff member within pay grade J. Benny earns $19.96/hour. His compa-ratio is 76% and he received a Consistently Exceeds Performance Standards. His new pay will be $21.36/hour, which accounts for the following CEC components:
1) performance/market-based merit increase on his base rate of $19.96 = $1.00/hr
2a) increase to new FY24 ISU minimum, if applicable = $0 (already above new ISU minimum)

2b) performance/market-based equity increase for classified staff making more than $14.42/hr = $0.40

3) DHR pay line increase, if applicable = $0 (already above the new DHR minimum)

Non-Classified Example:

Belinda Bengal is a non-classified employee. Belinda’s current annual base salary is $43,000. She received an evaluation rating of Exceeds Performance Standards, and her market ratio 94%. Her new annual salary will be $47,506:
1) performance/market-based merit increase on a base salary of $43,000/yr = $0.70/hr ($1,456/year)
2a) increase to new FY24 ISU non-classified minimum calculated based on the current salary of $43,000 if applicable = $3,050/year

2b) performance/market-based equity increase for non-classified staff = $0 (because the dollar amount increase to ISU minimum rate of pay of $3,050 is greater than this calculated component of $1,505)

3) DHR pay line increase, if applicable = $0 (only applies to classified staff)

Faculty Example:

Beth Bengal is a Clinical Associate Professor. Beth’s base salary is $69,773. She received an evaluation rating of Exceeds Expectations (Above Expectations) and a salary market ratio of 90%. Her new annual salary will be $72,765:
1) performance/market-based merit increase on a base salary of $69,773/yr = $0.70/hr ($1,456/year)
2a) increase to new FY24 ISU non-classified minimum based on current salary, if applicable = $0 (not applicable to faculty)

2b) performance/market-based equity increase for faculty = $1,536