- July 25th, 2012, 11:43 pm
#397116
BJ always e mails me when he sees a thread that he thinks I should read so he e mailed me last night about this one. I finally got a chance to read all the comments late today.
First, my quote about Liberty not being able to spend the money fast enough was in reference to the fact that Liberty is a non-profit and must re-invest all surplus funds in university programs and facilities v. paying it out to investors as profit. I was saying that we had grown so fast, there was no way we could spend the money fast enough, i.e., it is impossible to start that many new programs or build that many buildings as fast as the money is coming in plus the prudent thing is to put away a substantial portion of the surplus for future generations at Liberty that may need it. If you read the entire article instead of that quote alone, I think the reporter made it clear what I was saying.
Secondly, I know that the majority of frequent posters on FF are not recent grads, current students or current employees and can only comment intelligently about what used to be at Liberty. That is a significant disadvantage for a school that is changing so fast. But, I agree that nurturing the best possible employee experience was not a priority at Liberty when finances were tough. Frankly, that was a luxury that had to take a backseat to survival in those days. Now, that things have turned around for Liberty, the school's inability to devote attention and resources to employee relations is going the way of the dorm circle and the Schilling Center. But, it takes time. We do have new programs in place to show our appreciation to employees. The You Matter campaign is the most visible. It is not going change the culture that existed at Liberty for decades but it is a step in the right direction.
We also have full-time staff now whose only responsibility is to constantly compare the pay of Liberty employees to the pay of employees in comparable jobs at comparable institutions. For some positions, it is appropriate to compare pay to what others in Lynchburg are making. For other positions, it is not. All of those factors are being taken into consideration and pay is being adjusted department by department as the studies are completed. This started over a year ago. Millions of dollars in pay adjustments have been made just this summer. Liberty already has better benefits (health ins, DGIA, and 403(b), e.g.) than many comparable employers we are learning but some of those benefits are limited to employees who wish to continue their education. We are therefore looking for ways to provide comparable benefits to non-student employees.
But, adjusting pay alone is only part of changing the culture. The day is fast approaching that Liberty will not have one employee who is not being paid the full market value for his or her services. Once that goal is reached, we still have a lot of work to do but we are determined that Liberty will always be a place where every employee knows how valuable they are and a place that is an excellent career choice with numerous opportunities for advancement and the kind of work environment that is fitting for the world's largest Christian university.
And just as a side note, as a non-profit, it is technically illegal for Liberty to pay anyone more than the market value of their services. The IRS calls that private inurement and, when they find private inurement, it is grounds for revocation of an organization's tax exempt status. So, it really wouldn't matter if Liberty had no money, $1 billion or $100 billion in the bank. The law says we can't pay anyone more than what it would cost to replace them with someone of equal talents, abilities and experience. I know that law leaves plenty of room to argue about what somebody is worth but, at the end of the day, anyone of us is replaceable from the janitor to the head football coach to the chancellor and the law says Liberty can only pay each of us roughly what the next equally qualified person in line for our job would cost the school. If we were a for-profit institution, that would not be a legal requirement.
Last edited by JLFJR on July 26th, 2012, 12:17 am, edited 1 time in total.