What is a Market Based Pay Approach?
Its important both from the employers perspective and from the employees perspective. A prime goal for the university is to ensure that all pay plans (executive, faculty, administrative, IT, classified, AFSCME, and FOP) are externally competitive. By comparing Ohio University jobs to comparable jobs in the external market through the exercise of market pricing, a fact base is created that can be used to guide effective allocation of resources. Maintaining external competitiveness ensures the universitys ability to recruit or hire talented employees, and it pays a significant role in retention. If employees pay is not competitive, they are more likely to leave Ohio University for better paying jobs elsewhere. The other part of maintaining external competitiveness is exercising the fiscal responsibility of not overpaying for particular jobs or skill sets.
