Understanding Rutgers University Salary Equity: A Deep Dive into the Compensation Process

Rutgers University, like many institutions, has a process in place to address salary equity concerns among its faculty. This article aims to dissect and explain the mechanics of that process, providing a comprehensive understanding of how salary adjustments are determined. The explanation that follows details the pay equity process as implemented by the administration.

The Salary Equity Process: A Step-by-Step Breakdown

The salary equity program at Rutgers involves a series of steps, from initial application to final award determination. These steps rely heavily on comparator selection and a regression analysis of the university's faculty salary database.

1. Comparator Selection

The process begins with the applicant identifying suitable salary comparators. These are faculty members deemed to have similar roles, experience, and qualifications, against whom the applicant's salary is measured.

2. Dean Approval

The Dean of the relevant school or department plays a crucial role in validating the chosen comparators. The Dean must approve the comparators or submit a revised set. This step ensures that the comparisons are relevant and justified.

3. Initial Gap Calculation

Once the comparators are approved, University Compensation Services (UCS) calculates the initial salary gap. This is done by subtracting the average salary of all approved comparators from the applicant's salary.

Example: An Assistant Professor in Camden earns a base salary of $90,000. Their comparator earns $105,000. The initial gap is $15,000.

4. Regression Analysis: Predicting Salaries

This is where the process becomes more complex. The regression analysis, conducted by an external management law firm (Jackson Lewis), analyzes the University’s faculty salary database as of fall 2019. It uses four key factors to predict a calendar year (CY) salary for each faculty member:

Rank: This factor categorizes faculty into nine clusters, ranging from Assistant Professor NTT (Non-Tenure Track) to Professor II TT (Tenure Track).
Position Title: This includes specific titles such as “associate extension specialist,” “teaching instructor,” and Assistant Professor, also grouped into nine clusters.
Discipline: This is a crucial factor that significantly impacts salary predictions. It comprises ten clusters, combining campus and department. For instance, an English professor at Camden falls under "FASC-English," while an English professor at New Brunswick is categorized as "SAS-English."
Pay Plan: The details of this factor are not provided in the source text.

Each of these factors contributes to a predicted CY salary, which is a statistical estimate of what a faculty member should be earning based on these attributes. The predicted CY salary for an Assistant Professor is $122,917.66. This is the “constant” in the equation.

5. Identical Clusters: No Regression Effect

If the applicant and their comparators fall into the same clusters for all four factors (rank, position title, discipline and pay plan), the regression analysis has no effect. The initial gap remains unchanged, and the applicant receives a salary award equal to that gap.

Example: If the initial salary gap is $15,000, the UCS letter will show: Gap = ($15,000), Explained = $0, Unexplained = ($15,000), and the recommended salary award will be $15,000.

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6. Varied Clusters: The "Explained Gap"

Things become complicated when the applicant and comparators differ in one or more of the cluster factors. In this case, the regression analysis predicts salaries for both the applicant and the comparators based on their respective cluster values. The difference between these predicted salaries is termed the "explained gap." This is an estimate of the salary difference that should exist based on the regression model.

7. A Practical Example: History Professors

Consider an Assistant Professor in History at Camden with a comparator who is an Assistant Professor in History at New Brunswick. They only differ in their "discipline" cluster. The applicant cluster numbers are 2,1,3,2, and the comparator cluster numbers are 2,1,2,2.

The predicted CY salary for the applicant is $105,306, while the predicted CY salary for the comparator is $119,968. Converting these to academic year (AY) salaries (by dividing by 1.15) gives $91,570.44 and $104,320, respectively.

8. Determining the Explained Gap Value

UCS calculates the difference between the applicant's and comparator's predicted salaries ($91,570.44 - $104,320 = ($12,749.56)) and labels this the "explained" gap.

9. Calculating the Salary Award

The "explained" gap is then used to adjust the initial gap. In the example above, the initial gap was $15,000. Since the regression suggests that the comparator should only be making $12,749.56 more, the applicant receives the difference between these two values.

The UCS letter to this applicant would state: Gap = ($15,000), Explained = ($12,749.56), Unexplained = ($2,250.44), and the recommended salary award will be $2,250.44.

10. The Regression Equation: A Technical View

The predicted salaries are derived mathematically using coefficients generated from the regression analysis. The equation to calculate the CY salary of the applicant in the example is:

71927 + 0 + 0 + -0.0673583 + -0.0872813 = 11.5646304

11.71927 is the constant, which, when exponentiated, gives $122,917.66.
The coefficients for Assistant Professor and Assistant Professor TT are 0 because they are the "excluded" categories.
The discipline cluster 3 has a value of -0.0673583, lowering the constant's value.
Pay plan 2 has a coefficient value of -0.0872813, also lowering the constant's value.

To get the predicted CY pay, take the exponent of the equation result (11.5646304), which gives $105,306. Convert to AY by dividing by 1.15 = $91,570.44.

The same process is applied to all comparators. Their predicted salaries are averaged, and the result is subtracted from the applicant's predicted salary to get the "explained" value. This "explained" value is then subtracted from the initial gap to determine the "unexplained" portion, which forms the basis for the salary award.

The formula to calculate the award is: Gap + (Explained * -1) = Unexplained. A negative unexplained amount represents an award to the applicant.

Ongoing Adjustments and Future Regressions

The university will periodically rerun the regression analysis to make salary adjustments, and the coefficients will change. This ensures that the model remains current and reflects any shifts in salary structures across the institution.

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