The Institute's pay decision guidelines emphasize continued development and expansion of skills, knowledge, performance, and the ability to be flexible. Our goals are three-fold:
- to compete for qualified staff in an evolving environment
- to pay employees equitably and fairly
- to be fiscally responsible
MIT expects that employees will strive for excellence in their job performance and take accountability and ownership for their careers. It is essential that employees, either in doing their current jobs or in preparing to take on new and different responsibilities, continue to develop and expand their skills to keep pace with change and ready themselves for opportunities as they become available. It is also essential that managers and administrators provide employees with opportunities to grow and learn.
Internal and External Factors in Pay Decisions
Pay decisions are based on both internal and external factors. MIT considers the external market those organizations with whom it competes for employees, such as other academic institutions and general industry employers.
- Internal factors — pay equity with others in comparable jobs; an individual’s skills, knowledge, performance, and job-related experience.
- External factors — relevant labor market trends and their impact on employee pay.
Obtaining Job Market Data
- Compensation, along with department managers and administrative officers, monitors the job market closely.
- Compensation participates in annual salary surveys and, whenever possible, obtains salary information on "industry standard" positions, typically referred to as benchmark jobs.
- These are jobs that are typical in higher education and other industries and are easily matched and compared to jobs at MIT.
- Results of salary surveys provide the range of pay found in the market for jobs similar to MIT's.
- On the basis of these data, Compensation will review:
- Salary levels and ranges annually to determine the need for adjustments.
- Specific job families to ensure MIT is paying competitively.
- Note: Markets vary for certain jobs, depending on the recruitment pool, whether certain skill sets are in increasing demand, or whether a shortage exists of individuals with a specific expertise. Therefore, market pay levels vary for specific jobs and can increase slowly or aggressively.