Breaking Down Your Pay and Benefits

The university has balanced budgetary challenges from the economic downturn by only providing $1,000 lump-sum payments to staff making $50,000 or less in 2009 and $80,000 or less in 2010.This year, the university will provide performance-based pay increases for eligible employees. Despite not increasing base pay last year, Duke spent an additional $34.7 million to maintain benefits as part of the total compensation package for employees. A study by the Society for Human Resources Management in late 2009 indicated that 39 percent of companies were either "very likely" or "somewhat likely" to reduce or change benefit offerings in early 2010. At Duke, keeping base pay flat again last year avoided about $22 million in additional costs, a trade-off that helped fund the additional investment in benefits."Over the past few years, as we've tried to reduce the university budget by $100 million, we faced the challenge of investing in salaries or in benefits, and we chose to maintain our investment in our benefits," said Kyle Cavanaugh, vice president for Duke Human Resources. "We are pleased that this year, we can once again offer the option for performance-based merit increases, but this is a balancing act that we will continue to face in future years."Labor costs comprise approximately 60 percent of Duke's operating budget. For every dollar of wages an employee receives, Duke invests 20 to 25 cents on programs such as medical, life insurance, retirement programs and other benefits such as tuition assistance. Last year, Duke spent a total of $425 million to maintain its benefits package.  The value of these benefits is recognized by many employees at Duke and is frequently cited as a primary reason why employees choose to work and continue their careers at Duke. Terry Witting, a program coordinator, has worked at Duke for 22 years. She said she values more from Duke than just the monthly pay. The children's tuition benefit has allowed her daughter to attend Peace College without student loans."My youngest daughter goes to Peace, and Duke pays a little over $10,000 each semester - that is tax-free money for us," Witting said. "When I think about not getting a raise last year, I think about not paying $20,000 a year for her to go to school. I don'tt do a lot of complaining."Working at a world-class institution is also a draw for many employees. Tracyene Charles, a library assistant at Perkins Library, said a highlight of her 12 years at Duke has been working on a vibrant campus. She loves the beauty of the gardens, free access to thousands of library resources and the steady stream of students. "I'm 46, but the students help keep me young," she said. "I constantly learn about new technologies, new fashions, new movies. It is a wonderful perspective to be exposed to."Charles appreciates the deliberate way Duke addressed trimming expenses and efforts to avoid large-scale layoffs. "I didn't get too upset about not having a raise for a while because I assume that means there are still people out there who have a job," she said. Job security is high on the list of things Michelle L. Taylor is thankful for, along with family-friendly benefits that make her life as a single parent easier. "It is good to know that Duke allows me to take time off for my children's doctor and dental appointments," said Taylor, a health information management clerk for the Duke Eye Center of Winston Salem.As Duke continues to offer competitive pay and comprehensive benefits while managing rising costs, Cavanaugh encourages employees to educate themselves about benefits connected to their job. "I want our faculty and staff community to understand the options Duke provides to help them protect their health, plan for retirement, protect their loved ones and to balance their work and family lives," he said.