As anyone who’s been in the higher education field for long knows, equivalent job titles – or even similar job descriptions – don’t necessarily mean equivalent compensation. Significant differences in salary, benefits, and priorities can pose challenges for institutions seeking to fill key leadership roles like provosts, VPs of Enrollment, CFOs, and director positions.
What causes these discrepancies? And, more importantly, how can institutions work to develop appealing, well-rounded compensation packages that speak to all the dimensions that define a candidate’s decision-making?
Location and Cost of Living
Equivalent roles at schools in different regions can see notable salary differences, largely due to adjustments made to stay competitive and acknowledge cost-of-living (COL) changes. In particular, institutions in high COL areas, such as the Northeast and West Coast, are likely to offer higher salaries to offset costs. In contrast, areas with lower costs, like the Southeast or Midwest, may have lower salaries on paper but comparable real buying power in the area.
Institution Category
An institution’s categorization (public, private, or religiously affiliated) can be one of the biggest factors in determining a role’s compensation. What’s less clear is which direction those differences go.
According to one set of research from the American Association of University Professors, public institutions tend to have the lowest salary ranges, with private/independent and religiously-affiliated institutions paying notably more.
In our experience, however, this can vary widely from institution to institution. Some smaller schools do have the resources for higher salaries, while others may not. These salary discrepancies are not the whole compensation picture, of course, but they do underline differences in financial resources and priorities.
Size and Institutional Relationship
Research published in the Journal of Education Human Resources found that, in general, institutions with higher enrollment see higher pay across the board. That correlation between institution size and compensation, while not a perfect metric, would seem to be “common sense” for onlookers.
What’s less obvious, however, were some of the other findings in the same study. For instance, top administrators who have a previous connection to the university (i.e., internal promotions or alumni hires) tend to be paid less than those with no previous connection. It’s a reminder that, along with data points that seem visible to everyone, there are underlying assumptions and calculations that make each and every search unique.
Executive Recruiters Bring Broad Expertise
When hiring for a top leadership role – and especially when replacing someone who has had a long tenure in the job – it can be surprising to see just how much the market has changed.
That’s why Blue Rock Human Capital brings competitive intelligence and market insights to every search. We understand the importance of salary when filling a role, but we also know that salary isn’t the only consideration for top talent. They’ll also be thinking about:
- What additional benefits are available (healthcare, tuition discounts, etc.)
- Whether the area is a good fit for them and their families
- What the institutional culture is like
- Whether there is alignment between the institution’s priorities and their own
We approach searches from a holistic perspective, covering every dimension of why a top candidate might take a job (or might turn it down). Working with an executive recruiting partner means you’re partnering with someone who knows how to recruit passive talent, focus a search for speed to fulfillment, and wholeheartedly sell a role in a way that truly connects to win over the talent you seek.
In a landscape where talent can mean the difference between institutional success and failure, that partnership can be your biggest competitive advantage.