Change in Employee Compensation

Idaho State University Plan Specifics

The FY24 Idaho State University CEC Plan includes the components outlined below. These actions have been designed to address market competitiveness among employee groups and allocate funds consistent with direction from DHR and DFM.

• Performance/Market-based merit increase - Non-temporary, classified/non-classified staff, and faculty may be eligible for a merit-based adjustment. The FY24 Matrix built upon last year’s CEC process where ISU developed a  market-based component to our performance merit matrix for faculty and non-classified staff (as we have previously done for our classified staff).  ISU has prepared a single FY24 matrix that will apply to all benefit-eligible classified/non-classified staff and faculty:

*An employee’s current rate of pay compared to the market rate of pay. For more information, refer to https://www.isu.edu/cec/ 

For those hired on or before September 30, 2022, the merit portion of the matrix will be based on the 2022 performance evaluation rating. The market portion of the matrix will be determined based on the following:

• For classified staff - the market rate is based on the employee’s compa-ratio, which is the employee’s current hourly rate compared to the new DHR FY24 midpoint/policy of the assigned pay grade.
• For non-classified staff and faculty - market ratios were determined by matching positions to current salary survey data in ISU’s peer group by title/rank and discipline. These survey data were carefully reviewed and refined cooperatively by HR and division/college-level leadership to determine the appropriate market comparisons for our non-classified staff and faculty utilizing a consistent methodology across all positions and departments.

Increases for all ISU employees are calculated based on an employee’s salary as of December 31, 2022, unless the employee's salary has changed based on promotion, demotion, or salary increase prior to the CEC implementation date. Employees serving in interim positions do not receive CEC based on their interim appointment salary but will receive appropriate merit-based raises when they return to their primary positions. This merit/market matrix was designed to maximize performance-based adjustments and enhance market competitiveness for employee groups.

For examples of how this works for various employees, please refer to the “Calculations and Examples”.

• Performance/Market-based equity adjustments -  ISU’s FY24 CEC plan is developed with the goal of maintaining equity in overall percent increase across eligible employee groups (classified staff, non-classified staff, and faculty). It is important to ISU that employee increases across employee types in similar pay ranges remain consistent. Because of this, a variety of performance/market-based equity adjustments are being implemented for all employee groups, as outlined below. Employees must have a completed 2022 performance review with a rating of at least “meets expectations” to receive these equity adjustments. NOTE: Classified and non-classified staff members will receive either the increase from their current pay rate to the new ISU minimums, or the dollar value of the equity adjustment, whichever is greater.

Classified Staff:

• Increase of classified ISU minimum rate of pay - in an effort to better recruit and retain classified staff, ISU will adjust the minimum rate of pay from $13.00 to $14.75 for applicable classified staff positions. Additionally, new ISU minimum rates of pay will be defined for pay grades F, G, and H as outlined below; with commensurate increases for lead workers. The minimum hourly rate of pay does not apply to student or temporary non-benefit eligible positions. The determination of the increase in this component is based on the amount that would be needed to move the employee from their current base pay rate to the new ISU classified minimum for their pay grade. 

• Equity increases for classified staff earning more than $14.42/hr - to address pay compression and support equity in CEC increases across all employee categories, classified staff earning more than $29,994 annually ($14.42/hr) as of December 31, 2022, will receive an incremental per hour increase to their base pay. Increases for this equity component will be communicated to each employee in their personalized CEC letters to be distributed over the coming weeks.

Non-Classified Staff and Faculty:

• Increase of non-classified minimum rate of pay (does not apply to faculty, coaches, or resident directors) - ISU non-classified minimum salary is based on the minimum of DHR pay grade K. With the increase in DHR pay structure, ISU will correspondingly adjust the ISU minimum annual non-classified salary from $42,500 to $46,050 based on the new FY24 DHR pay structure, if applicable. The determination of the increase in this component is based on the amount that would be needed to move the employee from their current rate of pay to the new non-classified minimum of $46,050. 
• To address market (recruitment and retention) and compression issues, where applicable, ISU will apply incremental adjustments to salary for all eligible non-classified staff and faculty (see table below). These incremental adjustments are consistent with HR best practice to address compression of pay due to other CEC components for classified staff and the required increase to the new non-classified minimum. Incremental adjustments will range from a maximum of 4% (for those making $33,000/yr) to an increase of 0.5% (for those making $100,000/yr or greater). 

• DHR Payline Increase

Per legislative approval, the DHR FY24 pay structure (pay grades) increased for classified employees. After the implementation of components 1 and 2 (above), any eligible classified staff member currently being paid below the new FY24 DHR pay structure will be elevated to their new DHR pay grade minimum. These adjustments will apply to all benefit-eligible positions as needed, including staff on probation and vacant benefit-eligible salary lines when filled.

• Faculty Promotions/Advancements in Academic Rank for FY24

Consistent with past years, ISU will fund advancements in academic rank for faculty in preparation for the forthcoming academic year. The majority of faculty advancements in rank will be effective July 23, 2023, for AY contracts.