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The Salary Allocation Guidelines help support the process of implementing salary increases for staff and faculty. The Salary Guidelines apply to faculty and staff of the University of Kentucky. The Guidelines do not apply to UK Healthcare employees, since UK Healthcare operates on a different financial and salary allocation cycle.

The Salary Allocation Guidelines are intended as a resource for UK Area Fiscal Officers and Budget Officers.

Dear Colleagues, 

President Capilouto will be proposing to the Board of Trustees in June a Fiscal Year 2022-2023 Salary Plan in alignment with our goal of recognizing faculty and staff contributions. The salary plan applies to all eligible faculty and staff at the university, excluding UK HealthCare (UKHC) employees (Personnel Area = 1500) as UKHC operates on a separate salary review cycle.

Pending Board of Trustees approval, the salary plan is effective July 1, 2022, and includes a salary pool of more than $17 million, including benefits, for eligible faculty and staff funded with undesignated general funds. Equivalent pools will be established for eligible faculty and staff funded with designated general funds, restricted funds and auxiliary funds.

Eligible faculty and staff with satisfactory performance are to receive at least a $1,000 base salary increase. The accompanying guidelines describe the eligibility requirements and process for awarding the salary pool.

The FY 2022-23 Salary Plan guidelines, including a summary of the plan, is attached. We greatly appreciate the outstanding work faculty and staff do on behalf of the University of Kentucky.

Sincerely,
Eric N. Monday, Executive Vice President for Finance and Administration
Robert DiPaolo, Acting Provost
C: President Eli Capilouto

University of Kentucky
FY 2022-2023 Salary Plan Summary
(Excluding UK HealthCare)

This year, UK will implement salary increases in a manner that gives leaders and supervisors more flexibility in creatively allocating additional salary funds.
One of the principles of our strategic plan is “Taking Care of our People.” That includes how we compensate our faculty and staff for their contributions. By entrusting salary increase decisions with those who are best positioned to know their area’s needs, we can use additional salary funds most effectively.

In addition to a $1,000 base salary increase defined by the salary guidelines for all eligible faculty and staff, further salary increases may also be awarded as college and division leaders deem appropriate, working within available funds.

There are many factors which can inform the decision to allocate these salary increases, such as:
•    High performance
•    An individual’s salary relevant to the market range  
•    Current salary position within pay grade relative to amount of experience
•    Compression easing
•    Retention efforts
•    Salaries of others in similar positions
 
This salary allocation process empowers managers and leaders to recognize and reward strong performance while also taking into consideration external market factors. Below are some considerations for allocating salary increases.

High performance
A salary increase is one visible way to recognize and reward employees who have demonstrated very high skills, knowledge and abilities. The annual performance evaluation score may be one point of information in determining high performance. Other department metrics or observations should also play a role as well.
 
Market salary range
HR Compensation can share salary market data for staff positions. If data shows salaries at other organizations are higher than those at UK for a position, leaders may decide to use this year’s salary increase toward offering market-competitive compensation.
 
Salary position within pay grade
Each pay grade at UK comes with a minimum and a maximum salary. Additional salary funds can be used to increase the salary along the pay grade for an employee with more experience and education.  
 
Compression easing
Salary compression can occur over time when less-experienced employees are hired at a salary close to those who have more experience. Salary increases could be used to increase the salary of more experienced employees and reduce that compression.
 
Retention efforts
Retention is our best recruitment strategy. Current dynamics in the labor market nationwide have shown the value of retaining our current employees.
 
Salaries for similar positions at UK
UK strives for pay consistency for individuals of similar performance, grade levels, levels education and experience who are in similar positions.  
  

University of Kentucky
FY 2022-2023 Salary Plan Guidelines    
FACULTY AND STAFF
(Excluding UK HealthCare)
Effective July 1, 2022

Overview

1.    A salary pool of more than $17 million, including benefits, is to be allocated to eligible employees funded with undesignated general funds (FCC = S, M and N). Equivalent pools will be established for eligible faculty and staff funded with designated general funds, restricted funds and auxiliary funds.

2.    The salary pools may not be augmented regardless of fund source.

3.    Salary increases will be effective July 1, 2022.

4.    Eligible faculty and staff with satisfactory performance for the 2021 calendar year are to receive at least a $1,000 recurring base salary increase. The amount is to be prorated for employees with a full-time equivalent appointment (FTE) less than 1.0. Faculty and staff with unsatisfactory performance may be awarded zero to $1,000 at the discretion of the dean or unit manager.

5.    This program applies to campus faculty and staff. UK HealthCare operates on a separate budget cycle and UKHC will communicate salary increase plans at a later date. A UK HealthCare employee is defined as anyone whose personnel area in the employee enterprise structure was equal to 1500 at the time of allocating the salary pools.

6.    Do not distribute FY 2022-23 salary letters to faculty or staff until notified by the appropriate Area Fiscal Officer.

Eligibility

1.    To be eligible to receive a salary increase, regardless of fund source, faculty and staff must:

  • Have held a regular position as of January 28, 2022
  • Not currently be on a phased retirement appointment
  • Be in a regular position at the time the allocation is made during the budget process (Personnel Subareas = 0001 – 0005)
  • Not be considered a UK HealthCare (UKHC) employee (Personnel Area = 1500)

2.    Regular faculty and staff on military or other federally protected leave are eligible for a salary increase.

3.    Faculty and staff must have demonstrated at least satisfactory work performance for the 2021 calendar year as measured by the performance evaluation score or other indicator(s) to receive a salary increase greater than $1,000. For example, staff must have demonstrated at least satisfactory work performance  for the 2021 calendar year as measured by a performance evaluation score greater than or equal to 2.0.

4.    Faculty and staff hired on or between January 1, 2022, and January 28, 2022, are eligible for a salary increase of $1,000 or more if their performance during this period was deemed at least satisfactory by the department or unit head.

5.    Faculty and staff with no documented performance score or indicator(s) for the 2021 calendar year are eligible for a salary increase if their performance was deemed at least satisfactory by the department or unit head.

Operational Considerations

1.    Members of the President’s Cabinet will be assigned a pool of dollars for pay raises proportionate to each division’s percentage of the total salaries at the university. The salary increase pools will be further delineated by fund source. The Cabinet members will allocate the salary increase pools to their colleges and/or units as they deem appropriate. Following is a list of the Cabinet members and the applicable Area and Area Fiscal Officer:

 

Member Cabinet Area Area Fiscal Officer
Eric N. Monday Finance and Administration EVPFA Brad West
Katrice Albert Institutional Diversity President Brad West
Mitch Barnhart Intercollegiate Athletics President Brad West
Joe Reed Internal Audit President Brad West
Bill Thro Legal Counsel President Brad West
Thomas W. Harris Philanthropy President Brad West
Robert S. DiPaola Provost Provost Kristen Cheser
Lisa Cassis Research Research Judy Duncan
Kirsten Turner Student Success President Brad West

2.    Salary pools for positions funded with undesignated general funds (coded as FCC = S, M or N) will be funded centrally. Funding of the salary increase pools for positions funded from funding sources other than FCC = S, M or N must be identified and allocated within the college or unit. The salary increase pool amount for undesignated general fund positions will be used to determine the proportionate salary increase pool amount for all other funding sources.

3.    Distribution of the salary pools to employees will be determined at the discretion of the dean or unit manager. The allocation may be informed by multiple factors including, but not limited to, performance, compression, retention risk, identified market changes, salary position within pay grade and/or salaries for similar positions at UK.

4.    Eligible faculty and staff with satisfactory performance for the 2021 calendar year are to receive at least $1,000. Faculty and staff with unsatisfactory performance may be awarded zero to $1,000 at the discretion of the dean or unit manager.

5.    The salary increase shall be based on the eligible faculty and staff’s salary in effect on January 28, 2022. For any eligible faculty or staff whose base salary changed on or after January 29, 2022, the salary increase amount shall be based on the faculty or staff’s base salary in effect on January 28, 2022 and then added to the employee’s current base salary to determine their new base salary.

6.    Promotions for faculty holding positions funded with undesignated general funds (coded as FCC = S, M or N) will be funded from a separate pool of funds provided to the Areas. Salary adjustments for faculty promotions shall be added to the applicable faculty’s salary effective July 1, 2022.

7.    The entire salary pools must be distributed to eligible faculty and staff through this process. The salary pools shall not be held in reserve or used to support programming costs.    

8.    In rare cases whereby funds for salary increases are not available from the position’s current fund source, other funds must be identified. Lack of funding from a position’s original funding source cannot prevent awarding a salary increase to eligible faculty or staff. For example, a faculty member appointed to an endowed chair or professorship has a portion of their current salary and benefits funded from the endowment spending distribution. If there is insufficient recurring funding from the endowment to fund the proportionate salary and benefits cost increase, other fund sources must be identified.    

Process

1.    The salary increases will be entered into the university’s budget system, Public Budget Formulation (PBF), using the appropriate PBF screens.

2.    The faculty promotions salary increase shall be entered with the salary reason code of “Promotion”. All other salary increases shall be entered with the reason code of “Merit”.