Stanford University
PA-9: Employee Compensation

Note 001: Sustainable Compensation at Stanford
Stanford University enacts a sustainable compensation policy for all of the institution’s employees and for employees of contractors who work on campus (described in more detail below). Additionally, all of Stanford’s faculty and staff receive sustainable compensation, which is reviewed on an annual basis. Contractors who meet Stanford's living wage criteria/applicability must also follow the living wage guidelines and policies. The applicability is described online:
http://www.stanford.edu/group/fms/fingate/suppliers/dobusiness/policy_living_wage.html
However, due to shortcomings in the STARS reporting tool, Stanford is not able to earn points for this credit because the university does not centrally track the number of employees of contractors working on campus. Every school/unit could have contractors working on campus at any given time. Because there is no uniform methodology to quantify employees of contractors in Stanford's various departments, the university has been forced to not pursue this credit. In this situation, the absolute requirements of the STARS reporting tool have precluded Stanford from realizing any recognition for its sustainable compensation guidelines and practices. For more information on sustainable compensation at Stanford, please see below.

Note 002: Details on Stanford’s sustainable compensation guidelines and practices
Stanford’s staff compensation philosophy notes:
Stanford University is committed to providing a fair and competitive staff compensation program that will attract, retain and motivate high-performing employees at all levels. The university is also committed to providing a competitive total staff compensation package tied to the application of knowledge and skills, the attainment of individual and group results, and the achievement of organizational goals. In addition, we recognize that a sound compensation program must comply with all State and Federal laws and regulations governing pay.
The staff compensation program is designed to advance Stanford’s ability to attract and retain top talent and provide maximum flexibility to managers in making compensation decisions that reward performance. No distinction is made whether an employee is part-time or full-time status. Lowest paid employees are evaluated to ensure they are not paid below the living wage’s hourly rate. This review is done annually and adjustments are made accordingly if needed.
Stanford University annually assesses its wage and benefits programs for staff and faculty/academic employees using market-based surveys. Stanford’s compensation programs are annually assessed against other higher education institutions, general economic conditions, local pay practices and competitive market survey data as applicable. The university leadership reviews and recommends any adjustments that are to be made to the organizational pay structures and to base pay. All faculty salaries are approved by the Dean of the School and the Provost. Salary increases are annually reviewed and are based on performance, applicable compensation policies and budgetary considerations. The two applicable collective bargaining agreements at Stanford are based on negotiations with the respective unions and reflect local competitive pay practices.
Additionally, since September 1, 2007, Stanford University has recognized the importance of paying a living wage to all service workers at Stanford, whether they are directly employed by Stanford or by contractors. This consideration is included in the annual staff pay analysis and is reflected in the terms and conditions applicable to vendors doing business with Stanford. Through these guidelines, Stanford seeks to establish minimum pay, access to healthcare benefits, and compensated time off for service workers. These guidelines are not intended to prevent contractors from providing wages and benefits in excess of the minimums created here.
Based on the recommendations of the 2005 Stanford Presidential Advisory Committee on Workplace Policies, University Compensation developed a new classification and pay system for non-academic temporary and casual jobs. The Temporary and Casual (Non-Academic) Employee Compensation System is modeled on the compensation system used for regular staff employees. The minimum wages are also reviewed annually in keeping with the regular staff employee compensation practices and incorporate the university’s living wage analysis that is utilized for contractors. Wages are calculated to provide for a higher rate since no benefits are provided to this classification of employee.
Lastly, Stanford maintains an Undergraduate Wage Scale in accordance with the guidelines set forth in Section 24 of Stanford’s Administrative Guide. In keeping with the University’s general budget plan, the recommended wage rates have been increased by approximately 2% from 2012-2013 levels. The rate paid for a specific position should be in accordance with the skills and experience needed to perform the job. The minimum suggested wage is $12.85 per hour for Level 1 undergraduate employees.
For website URLs, please refer to the following:
Staff:
https://adminguide.stanford.edu/chapter-2/subchapter-1/policy-2-1-5
Faculty:
http://facultyhandbook.stanford.edu/ch5.html#appr
Students:
http://www.stanford.edu/dept/finaid/aid/employ/wage_scale.html
Contractors:
http://www.stanford.edu/group/fms/fingate/suppliers/dobusiness/policy_living_wage.html