IU employees to receive raise after salary freeze

IU employees will see a little more money in their pockets come Nov. 1.

A 3 percent overall pay increase was approved by the Board of Trustees and announced by President Michael McRobbie Aug. 20. Faculty and staff did not see a raise in 2009.

“Last year we did not have adequate resources,” IU Spokesman Larry MacIntyre said. “For this fiscal year, there was enough money in the budget. This is about the maximum amount that he could come up with and still be responsible.”

Seventeen million dollars will be needed, MacIntyre said, to fund the increase for this fiscal year, with another 12.5 million in savings required to keep the raise in effect.

Neil Theobald, vice president and chief financial officer for IU, said in order to stay within that budget, the increase for employees will be based on performance. Some employees will see a 1.25 percent increase, while others will see up to 6 percent.

“If someone has performed unsatisfactorily, they will not get a raise, but that is very uncommon,” Theobald said. “This is a really important thing for the University to do. All of the employees have done a remarkable job.”

Theobald said even with the prospect of receiving no raise, feedback from University staff has been positive.

Another way the school will work within its budget is by cutting costs and streamlining various departments.

“The University has been discussing this for many months,” said Kathleen McNeely, associate vice president of finance. “I’ve been part of those global
discussions.”

Theobald has asked McNeely to spearhead the project, which will look specifically at operations and costs in the human resources and student services areas of IU. By working with colleagues at the University of Michigan — which is in the
process of completing a similar project — McNeely said the quality of services will not be lost.

The associate vice president of finance will present her plans at the next board meeting, with overall implantation done by December 2012.

“This is student service activities over seven campuses and human resources,” McNeely said. “It isn’t something you’d want to change quickly without thoughtful analysis and discussion. We are at the stage of the analysis. Two years is a long time.”

McNeely also said there should be no fears regarding job cuts in these departments.
“People should stay up-to-date and thoughtful,” she said. “No one needs to have any immediate concerns.”

—Katie Dawson contributed to this story.