Policies on Faculty Reward Structures: Report from the States

Introduction

Increasingly, faculty are at the center of discussions about higher education reform. A recent WICHE survey of State Higher Education Executive Officers explored state policies concerning faculty reward systems. In general, policies affecting faculty reward structures are determined at the board and institution level. The reward options considered most important by these leaders are post-tenure review, contract renewal, merit pay/salary increases, and promotion. Only one state was expecting policy activity related to incentive funding. A number of issues are contributing to state policy interest in faculty reward systems, including accountability, faculty productivity, budget constraints, and information technology. Given these issues, policymakers need to create a clear description of faculty responsibilities before examining faculty reward structures.

A number of social changes are driving reform in higher education as states grapple with the increasing costs of higher education, institutional accountability, and differences between what legislators say their constituents want and what higher education is delivering. Increasingly, faculty work and faculty reward structures are at the center of these discussions about reform. Faculty reward structures-including salary, tenure, workload, and incentive funding-are tools policymakers can use to influence the work at colleges and universities.

The trend towards increased state interest in faculty reward structures coupled with the role faculty need to play in institutional reform motivated WICHE to survey the states in October 1997 on involvement in faculty reward systems. State Higher Education Executive Offices responded to our inquiry on current state involvement in faculty reward structures, anticipated legislative and board involvement in these issues, and concerns that are contributing to state-level interest in reward structures. This issue of Policy Insights summarizes findings from WICHE states, explores their implications for policymakers, and shares examples of effective programs.

This issue of Policy Insights was prepared by Jacqueline Spears, Professor of Foundations and Adult Education at Kansas State University. A monograph with results of the national survey will be available in early summer 1998. WICHE gratefully acknowledges assistance from staff in State Higher Education Executive Offices who provided information for this report.

Policy Insights is a series designed as a companion publication for WICHE's recently published fact book, Policy Indicators for Higher Education: WICHE States. Drawing on the indicators contained in the fact book and information from other sources, Policy Insights examines current issues in higher education from the perspective of policymakers at the state level and on the campus.  Paper copies of any Policy Insights can be ordered electronically though the WICHE Publications Order Form.  There is no charge for paper copies of Policy Insights.