Update on compensation incentive plan (merit pay)

This communication is to update you on the university administration’s efforts to develop and implement a compensation incentive plan (merit pay) for all employees as requested by the MTSU Board of Trustees. 

In January of this past year, I appointed a special committee comprised of faculty, staff, and administrators to recommend a university-wide merit pay system for the campus. I anticipate receiving the committee’s recommendations in late summer or early fall of this year.

I am keenly aware of some of the challenges and issues associated with the development and implementation of a fair and equitable compensation plan for university employees. One of the major challenges is implementing a merit system that reflects a diverse employee-base comprised of faculty, staff, and administrators. I have charged the committee to be very deliberative as they work toward developing the recommendations. It is important for you to know that my one major goal is to continue to improve the salaries of all our employees that includes addressing the need to increase our salaries to market levels. 

As I noted earlier, there are many issues and challenges as we pursue this effort. I want to assure you that we will take the necessary time to develop and implement a sustainable merit plan that reflects best practices in higher education. 

I appreciate the good work and dedication of the committee members and look forward to receiving the group’s recommendations. I will provide additional updates as the committee continues its work. 

Finally, I wish to express my appreciation to all our employees for your dedication to our university. It is our goal to implement a merit pay system that enhances excellence and supports the success of our community.  

Sincerely, 
Sidney A. McPhee
President

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