President's Office Building, Room 1 on a mapOffice of the President 4400 Massachusetts Avenue NW Washington, DC 20016-8060 United States
Dear AU Community,
American University has thrived through challenging times because of our staff and faculty, and with the FY23-24 budget, we are making extensive investments in our people. This includes $76 million in compensation pools, which is the largest increase in the entire budget, and an additional $32 million in financial aid over the two years. Several key investments will go into effect in the coming months, including the largest employee compensation pool since 2005 with most members of our teams eligible for four percent salary increases across our compensation frameworks. I want to share some important details and timelines for how we will be supporting our workforce through compensation updates.
External Conditions Adjustment: Effective July 1, 2022, eligible faculty and staff (including eligible part-time staff) will receive a two percent increase in annualized base salary. We know the current economic conditions create added pressures, and we are committed to supporting our teams during these unusual circumstances. The increase will appear in the July 22 bi-weekly paycheck or the July 29 monthly paycheck. To be eligible for the increase, full-time and part-time staff and faculty members must have been hired or promoted prior to May 1, 2022. Term faculty who are reappointed for the fall will receive the increase in their September paychecks. Additionally, the minimum wage will increase to $16.10 per hour in accordance with Washington, DC, regulations.
Performance-based Compensation Increases: Following the applicable performance management processes (PMP) this summer, eligible full-time faculty and staff may receive performance-based pay increases. To be eligible, full-time employees must have been hired, promoted, or received a pay increase prior to May 1, 2022 (excluding the economic conditions adjustment). Faculty and staff whose positions are funded through external sources may receive the performance-based increase to the extent permissible under the funding source. Departments and units will be allocated a two percent performance compensation pool to distribute based upon the results of faculty reviews and the PMP. The pool will be used to reward strong performance and incentivize such performance levels going forward. Supervisors will allocate compensation increases based on individual performance and progress towards goals, as this is not a two percent across the board increase. Performance-based increases will appear in the September 16 bi-weekly paycheck or the September 30 monthly paycheck.
Market, Equity, and Retention Investments: Beginning in January 2023, Human Resources will work with departments and units on addressing market, equity, and retention (MER) through the separate funds that were set aside in the FY2023 budget for this purpose. This is a limited pool of resources intended to address individual circumstances, and more information will be forthcoming on this aspect of the compensation framework in the fall. This will be an ongoing effort over time within our overall compensation strategy. As previously noted, the FY2023 and FY2024 budgets contain specific and separate funds for significant salary floor and compression adjustments for the majority of our term faculty. Additional faculty MER priorities will be addressed by the dean of faculty and relevant school deans.
Under federal law, terms and conditions of employment (including compensation) for unionized employees cannot be changed outside of the bargaining process. The amount and timing of compensation updates for members of the four bargaining units (academic affairs staff, adjunct faculty, graduate student employees, and WAMU content staff) will be determined through the ongoing collective bargaining process. The compensation measures outlined above are available to eligible employees who are not represented as members of one of bargaining units. Negotiations remain ongoing, and the university is eager to reach agreements covering each of those bargaining units.
The important news about our compensation programs reflects our appreciation of the people who make the AU community a special place for us all. Thank you to our staff and faculty.