FAQs
What does the term “compensation” mean?
Compensation refers to the total pay received by an employee in exchange for services. Total pay, typically referred to as total cash compensation, is the sum of base salary, and any bonuses or additional pay.
How does CACG analyze compensation data?
Compensation data is organized into percentiles. The 25th percentile represents a value in which 25% of respondents are paid at or below, and 75% are paid more. The 50th percentile, or median, represents the amount in which 50% of the respondents make more, 50% make less. The 75th percentile represents an amount where only 25% of respondents make more, and 75% make less.
Most departments, universities, and companies aim to pay employees competitive to market, typically between the 25th and 75th percentiles, concentrating at or around the market 50th percentile.
How can a department evaluate pay competitiveness?
Departments can compare pay to other institutions by routinely participating in salary surveys that include collegiate athletic department positions, like CACG’s 2025 College Coaches & Athletic Staff Salary Survey. There are also various databases that report pay information, but many just provide individual data points that can be difficult to verify.
Institutions can also collaborate to share pay information among themselves, but it is recommend that a department consider at least 5 unique data points for a position when evaluating pay. It is important to ensure data is anonymized to protect employee and department privacy.
How can a department link pay to employee performance?
Determine a routine process for evaluating and communicating employee performance across the department, typically on an annual basis. This evaluation of performance can allow for differentiation when determining base salary increases. Employees deemed poor performers should receive modest or no increase to base salary, those deemed average performers should receive an average or typical increase, and employees deemed to be high performers should be given a larger than normal increase.
The following can also be achieved through department bonuses, where employees receive a higher or lower bonus payout based on performance. Below is an example merit matrix, a tool that can be customized for institutions wanting to link employee performance to base pay increases and bonus payouts. CACG can help your department create a performance evaluation process and merit approach that allows for appropriate base salary increases and bonus payout based on performance, while adhering to department budgets.
How does CACG determine salary recommendations?
CACG determines competitive salary ranges for an individual employee based on current tenure, previous experience, performance, and evaluation of peer data. Appropriate salary ranges vary based on institution size, location, and position specifics.