What is the University’s minimum hiring rate?
The rate is $9.37 per hour for University classified salaried and classified wage employees in the academic division (including UVaTEMPS) and for all Medical Center employees. The recent increase in this rate from $8.88 per hour was based on U.Va.’s examination of current wage market data for the Charlottesville area. This rate exceeds the federal minimum wage ($5.15) by 81 percent and the state classified minimum wage ($6.83) by 37 percent.

What fringe benefits are included in the University’s compensation package?
The University’s generous benefits package, including health insurance and retirement benefits, adds another $3.29 per hour to the $9.37 rate, which translates to an additional $6,843.00 a year. That means the lowest paid employee at the University receives $12.66 per hour in total compensation. Calculations indicate that these fringe benefits will be increased to $3.45 per hour in the 2006-2007 fiscal year, or $7,176.00 annually.

How does the University set its pay rate?
The University compensates its employees at competitive market rates of pay. In most years, rates of increase are indexed directly to the section of the state budget that determines the rate of increase for state classified employees. In addition, U.Va. participates in or purchases market salary surveys periodically in order to identify disparities and to make necessary adjustments.

Where does the funding for salaries and wages come from?
Depending on the area in which the employee works, funding comes from various sources including student fees, patient revenues and General Fund appropriations from the state. For the past three years and going forward, U.Va.’s Board of Visitors has allocated $250,000 each year in addition to funds from the state for strategic base-salary adjustments for classified employees. For the past six years, the University has awarded 3,853 in-band salary adjustments, totaling nearly $12.5 million.

Does the University offer employees bonuses or other rewards?
Individual departments have funded rewards and recognition bonuses (including both monetary bonuses and paid days off) for superior performers. Those have totaled more than $1 million and nearly 2,150 days off to eligible employees. In addition, U.Va.’s Board of Visitors has provided $200,000 from tuition increases to fund bonuses under the state Reward and Recognition Plan.

What is the turnover rate for employees at the University?
Of the University's classified workforce, 41 percent has 10 or more years of service, and 29 percent has 15 or more years of service. The University's turnover rate for the past three years has ranged between 8 percent – 10 percent, while the industry standard for turnover was between 17.4 - 19.8 percent.

What role does the University have in setting compensation for contract employees?
The University, as a state agency, does not have the legal authority to impose its will on private vendors and contractors in their setting of wage rates for their employees. Over time, some contractors have adopted U.Va.’s wage rules. Others have not, but none has done so because U.Va. determined what they must pay.

Can the University do anything to change that policy?
U.Va. has been advised by legal counsel that only new legislation would allow the University to dictate contractors’ salary policies. However, U.Va. officials have begun the process of requesting the Attorney General’s advice on two questions: (1) could the University have the authority to require contractors to pay their employees wages that reflect a sum that U.Va. sets, and (2) what differences are there between the University’s ability to dictate contractors’ wage rates and the ability of three localities that claim to have set such rates for their contractors. (University of Virginia Press Release, April 16, 2006)

Editor's Note: See also President Casteen's Statement on Competitive Compensation