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Keeping Your Faculty Salaries Competitive

Salaries are always important; however, in our current economy with budget cuts and funding changes, it can be difficult to know whether your school's salaries are staying competitive to help you find the best and most qualified faculty. AACSB International collects information on full-time faculty salaries on an annual basis. Reports showing the average salaries by discipline and faculty rank are released in January each year based on the most recent survey. To really get a better idea of how average salaries may be changing, a controlled set of 480 schools that participated in all years from 2009–10 to 2011–12 was used to consider any ongoing salary fluctuations.

The following table provides some background to the data included. In this set of 480 schools, approximately 28,000 total full-time faculty were reported in each year. As can be seen from the average salaries listed, there has been slow but steady growth in salaries overall.

Average Salaries by Faculty Rank

Year

Total Full-Time
Faculty Reported

Professor

Associate

Assistant

Instructor

# of Schools

2009–2010

27,998

135.5

109.1

104.0

64.5

480

2010–2011

28,220

138.4

110.5

106.9

66.8

480

2011–2012

28,260

143.1

114.1

111.5

68.8

480

As expected, salaries increase with the higher faculty ranks. It also is interesting to note that the increases are proportional overall, with each faculty rank maintaining a near constant difference from the others.

This does not mean that there have not been large changes, particularly within the discipline and faculty rank levels combined. The following two tables show the faculty rank/discipline combinations that had the largest increases and decreases in their average salaries. These also tend to be the disciplines that report fewer total faculty members, so they are more susceptible to shifts with new hires and retirements.

Largest Increases in Average Salary

Faculty Rank

Discipline

Change from 2009–2010
to 2011–2012

Assistant Professor

Quantitative Methods (includes Operations Research, Statistics)

15.3%

Instructor

Production / Operations Management

13.4%

Assistant Professor

Business Law / Legal Environment

11.1%

Largest Decreases in Average Salary

Faculty Rank

Discipline

Change from 2009–2010 to 2011–2012

Instructor

eBusiness, includes eCommerce

-14.1%

Assistant Professor

eBusiness, includes eCommerce

-10.4%

Professor

eBusiness, includes eCommerce

-9.1%

In the larger disciplines, growth has been strong. These are the disciplines representing the most faculty. For example, in 2011–2012, 16.9% of all full-time faculty were reported with a discipline of accounting/taxation. Another similarly sized discipline, management, made up 17.3% of the total full-time faculty reported. Together, accounting/taxation, finance, management, and marketing are approximately 62% of the total full-time faculty reported. The salary changes in these disciplines all have been positive.

Discipline

Code/Title

2009–2010

N

2010–2011

N

2011–2012

N

2009–2010 to 2011–2012

Accounting / Taxation

Professor

136.3

1,408

140.1

1,418

144.4

1,404

5.9%

Associate Professor

116.0

1,290

117.9

1,263

121.9

1,244

5.1%

Assistant Professor

116.8

1,193

121.9

1,205

126.4

1,248

8.2%

Instructor

65.5

846

68.3

894

70.2

891

7.2%

Finance / Banking (includes Insurance, Real Estate)

Professor

157.3

1,396

160.3

1,421

164.1

1,443

4.3%

Associate Professor

126.7

1,053

129.0

1,067

133.0

1,062

5.0%

Assistant Professor

126.5

1,129

129.2

1,127

133.8

1,136

5.8%

Instructor

75.3

451

78.4

481

79.7

496

5.8%

Management (includes Behavioral Science / Org Behavior, International Mgt, Strategic Mgt)

Professor

133.1

1,565

136.6

1,559

143.6

1532

7.9%

Associate Professor

107.2

1,228

108.9

1,300

112.4

1,318

4.9%

Assistant Professor

101.0

1,381

103.9

1,320

107.5

1,339

6.4%

Instructor

65.1

666

67.8

684

70.7

702

8.6%

Marketing

Professor

137.9

1,197

141.8

1,197

147.1

1,190

6.7%

Associate Professor

109.1

986

110.5

978

113.6

1,000

4.1%

Assistant Professor

103.5

1,041

105.8

1,071

110

1,066

6.3%

Instructor

63.0

450

64.9

459

66.5

456

5.6%

While salaries and budgeting situations have been more moderate in recent years, this data indicates that management education is still going strong. Finding well-qualified faculty that are a perfect fit will always be a challenge, but, with salary, rank, and discipline data available, there is a much better chance of finding the best person at the right salary.


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