Increase of pay

There is growing concern among many employees at our institution—the issue of low pay. While senior management enjoys comfortable compensation packages, a significant number of our staff are living paycheck to paycheck. Many of our colleagues are single-income earners without the benefit of a partner's additional income, which makes managing the high living costs, such as rent for an apartment, particularly challenging. Arizona's cost of living has steadily risen, placing additional financial strain on employees. As an institution that prides itself on innovation and sustainability, it is crucial to recognize that the well-being of our employees is a fundamental aspect of these principles. Arizona State University has long championed its commitment to "...assuming fundamental responsibility for the economic, social, cultural, and overall health of the communities it serves." We, the employees, are a vital part of this community, and our financial compensation must reflect the increasing cost of living. It is particularly disheartening to note that while millions are allocated to the salaries of individual high-ranking employees, the broader workforce struggles to make ends meet. Many of our colleagues are forced to take part-time jobs to keep up with Arizona’s escalating expenses. This situation is not only unfair but also unsustainable. Despite the visible investments in new infrastructure, there has not been a corresponding adjustment in employee pay. This disparity suggests a misalignment between the university's financial priorities and the needs of its workforce. It is disheartening to feel that our contributions are undervalued, especially when substantial resources are allocated to other areas. Furthermore, it is disappointing that we must repeatedly advocate for a salary increase, even as ASU continues to generate significant revenue from students worldwide. The individuals who support these students and contribute to the university's success have not seen any meaningful change in their compensation. We believe that fair compensation is a matter of equity and essential for fostering a motivated and sustainable workforce. Our dedication and hard work are integral to the university's success. As we look to the future, ensuring that all employees are fairly compensated and valued for their contributions is vital. Thank you for your attention to this important matter. We hope for a thoughtful and timely response that addresses our concerns and demonstrates the university's commitment to its employees.

Resolution/Notes

Thank you for your comment. ASU continues to invest in its people on many fronts. On an Enterprise level, the ASU Operating Budget plans for salaries and wages expense to increase by 11.4% and benefits costs to increase by 10.4% over the FY 2024 budget. ASU has budgeted for and provided salary/merit increases to staff and faculty beginning a few years after the great recession of 2009 up through the Covid-19 pandemic. The University paused salary/merit increases during this time and restarted a salary increase program in the fall of 2021 and each subsequent calendar year since then. In the fall of 2022, the University set a new floor of $20.00 per hour for hourly staff recognizing the rising level of pay for hourly positions in the marketplace – driven by post Covid-19 labor market challenges. ASU’s total compensation philosophy provides the tenants behind what is offered and the associated costs. Base compensation considers what other local employers pay for comparable positions and benefits are likewise structured to be highly competitive while at the same time, have employee cost-sharing that reflects our belief that ASU should absorb benefit cost increases as much as possible. Currently ASU covers approximately 80% of total premium costs to provide the workforce with best-in-class benefits. On an ongoing basis, ASU reviews relevant data to assess changes in labor market indices, pay levels, etc., to ensure we offer competitive pay and benefits – total rewards – that allows us to attract, retain, and reward employees for their important contributions to the institution. Again, thank you for your interest in this important topic.

Status

Resolved

Last Updated

Category

Human Resources (Benefits)