The overarching perspective is one that considers institutions as markets and the ability of various types of institutions to preserve and protect their mission and direction through practices of hiring and compensation. External market issues affect institutional polices and practices regarding compensation, including dimensions of the current and prospective faculty labor pools and the dispersion of salaries across academic and nonacademic markets. Internal market issues include the role of faculty as independent professionals within a multidisciplinary market and new contractual and compensatory arrangements for faculty, including retirement. Institutional quality is inextricably bound to the quality of the faculty, yet hiring and retaining high-quality faculty members are likely to become increasingly difficult in the years ahead. Making Sense of the Dollars examines these questions and provides some answers for faculty and administrators.
Equity is a central concept in pay systems generally.
Inequitable policies and practices of compensation can result in poor use of human resources, individual frustration and discord, and lower institutional productivity. Compensation policy and practice are underwritten by several important federal laws and regulations, and state statutes. The Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 are particularly defining. Considerable controversy surrounds the idea of equity and its application to various individuals and groups within higher education. Claims of salary discrimination have played a crucial role in shaping the nature of the debate since these federal laws were passed.