1. Collective Bargaining Contracts with Performance Metrics A “Success Pool” and ”Faculty Excellence Awards” Kent State University NCSCBHEP 39 th Annual National Conference April 2, 2012

2. ACADEMIC YEAR 2011-2012 8 Campus system: 10 colleges; 40 departments, schools, programs; 200+ majors and minors. Total Budget $575M (71% in Academic Affairs). Total enrollment 42,000 (Kent 28,000, RCs 14,000). In-state tuition (Kent UG $9,300; Regional UG $5,300). Total employees 5,000. Faculty (600 Tenured, 220 Tenure-track, FT Non-tenure track 410; Part-time 1,300; Graduate Assistants 1,000). Faculty bargaining units (tenured/tenure-track faculty since 1979; full-time non-tenure track faculty since 1995).

3. Success Pool CBA, ARTICLE XII – Salary, Section 4.D. “ … an additional bonus pool, designed to allow faculty to share in University success, will be established. The Success Pool may provide faculty with annual bonuses based upon the University’s ability to achieve certain goals.”

4. Success Pool Metrics 1. Funded Research 10% of incremental increases in total University research funding, as long as it increased by at least $2 million. From 2008 to 2009, funding increased to $46 million from $32.5 million. 2. Student Retention 40% of incremental tuition revenue derived from an increase in freshman retention, as long as the increase was 0.5% or greater. Retention increased from 68.3% in Fall, 2008 to 73.5% in Fall, 2009. 3. Institutional Development 2% of incremental increases in fundraising over previous year, as long as increase is at least $2.8 million. Fundraising increased from about $28 million in 2008 to $37 million in 2009.

5. Calculation and Distribution The Success Bonus Pool may be funded by any or all of the three success pool metrics. University declares the bonus amount for eligible faculty members no more than sixty (60) days after the 15 th day Fall semester census. Each eligible faculty member receives a one-time cash bonus. The Bonus is distributed to eligible faculty members on a per capita basis.

6. Success Pool Payout (per Faculty Member)

7. Considerations … Creating and implementing these types of CBA provisions can be very time-consuming. Who is eligible? What are the metrics? Who is responsible for the final calculation? How are the “triggers” determined? How and when is the pool paid (e.g., lump sum, to base) What is the impact on retirement accounts? Include examples of calculations in the CBA [handout] Plan your message Other employee groups may feel left out, not appreciated

8. Faculty Excellence Awards CBA, ARTICLE XII, Section 3 “ … the University will establish an additional salary pool for the purpose of recognizing documented Faculty Excellence in achievement, performance, and contribution.” Two broadly-defined areas of demonstrated Faculty excellence, are to be recognized through Faculty Excellence Awards: Teaching/Service (50%) Scholarship/Creative Activity (50%)

9. Allocation of Faculty Excellence Awards 72.5% of merit pool is allocated at the department level. Department-level awards are jointly determined by the Chair and the department’s Faculty Advisory Committee. The Chair makes a recommendation to the Dean who has the final decision. 17.5% of merit pool is allocated at the college level by the Dean. 10% of merit pool is allocated by the Provost.

10. Considerations… Kent State’s merit method relies on criteria set by each unit – they are not equivalent across departments and colleges. System is highly reliant on Faculty input, which makes the process transparent (positive), but potentially divisive (negative). Generally, the Faculty Excellence Awards have only been established in the final year of each 3-year contract, and cover the previous 3 years. Both Faculty and Administration are divided on the importance and methods of awarding merit.

11. Collective Bargaining Contracts with Performance Metrics NCSCBHEP 39 th Annual National Conference April 2, 2012

12. Academic Year 2011-2012 12 Locations: The Akron Campus, Wayne College, + 4 Regional Centers 11 colleges; 47 departments and schools; 300+ undergraduate and graduate programs Total Original Budget $405.9M Total enrollment 29,699 (UG 25,190; G 3,961; Professional 548)

13. Academic Year 2011-2012 13 In-state tuition (UG $9,545) Total full and part-time employees 5,445 Faculty (487 Tenured, 158 Tenure-track, FT Non-tenure track 163; Part-time 1,052; Graduate Assistants 1,359). Faculty bargaining units (full time tenure and non-tenure track faculty since 2005)

14. Raise components in the CBA 14 Tied to merit evaluation metrics – Base merit (min. merit score threshold) – Academic unit merit (merit score proportional) Tied to market comparison metrics – Market adjustment Not tied specifically to metrics – Promotional raises – Strategic priorities pool All raises except promotional were tied to the financial health of the University

15. Academic unit merit metrics 15 Basic structure common University wide Scale of 1 to 5 for: – Teaching – Scholarship – Service Specific metrics determined by the academic units with administration approval – Weighting of the three components – Determination of the “score” for each component Here, p is the merit score (i for individual faculty member; j for sum over all faculty), b is the base salary (same subscript meaning); M is the total merit pool for that academic unit

16. Market metrics 16 Applied to “titled” Professors (e.g. Distinguished or Chair Professors), Professors, and Associate Professors – Comparisons were made at the rank & discipline level and adjusted for years of service for Professors and “titled” Professors Whether to do so for Associate Professors this year is currently under discussion by a joint Administration/Union working committee Half the market component was formula driven; half was distributed by academic unit level committees (chair + two faculty)

17. Raise reduction triggers 17 Base figure of merit was 2010 recurring revenue (state subvention plus tuition & fees) If the recurring revenue was less than the base year then raises could be reduced 2% to 3.99% : 25% reduction 4% to 5.99% : 50% reduction 6% to 7.99% : 75% reduction 8% or more : raises eliminated So far in this contract cycle (2010 – 2013), this language has not had to be used