Like it or not, higher education has become a business, and similar to traditional employers the University must react to deteriorating economic conditions. With the United States' economic downturn compounded by the events of Sept. 11, President Hunter R. Rawlings III announced yesterday that Cornell would initiate a University-wide hiring freeze of non-student, non-academic staff and would investigate other cost-cutting measures.


This freeze on hiring, which will be in effect at least until June 2002, is a well-timed preventive measure for the University to take economically, as long as it does not negatively impact current workers. In addition, the process under which exceptions to the freeze will be granted must be fair and non-burdensome.


As President Rawlings wrote in his statement, the University endowment has dropped close to eight percent in the fiscal year ending in June. In addition, unofficial reports on the New York State budget have been grim with prospects of low tax revenue and plans for high spending to rebuild New York City. With Cornell financing tied to both of these factors -- the endowment payout as well as state funding for the College of Agriculture and LIfe Sciences, College of Human Ecology, School of Industrial and Labor Relations and the College of Veterinary Medicine -- the University has to take measures to ensure that it is still able to function if the downturn worsens.


The University wisely protected certain initiatives, especially those related to hiring issues. For instance, faculty and those students in need of jobs to pay tuition are not in jeopardy. In addition, the faculty salary initiative to retain the highest quality faculty has remained intact.


However, more cloudy is the fate of current staff members. The University must make sure that staff members -- which include administrators, computer personnel, dining staff and other support staff -- are not overburdened by a lack of hiring. While some staff may want overtime pay, other employees are not able to accommodate this request due to family obligations and other time constraints. In addition, promotions and the prospects of moving up within the University cannot be removed or else employees will lose a strong motivation.


The process of gaining an exception to the freeze, which will determine when staff members do have a legitimate claim to hire a new employee, must be fair as to ensure the ability for the University to function and to sustain the morale of employees. This exception process also must not be too time consuming. If this happens, the University will just have another layer of bureaucracy that slows work around campus.


Overall, as long as the University keeps these issues in mind, the hiring freeze could stand to put Cornell in a stronger financial position until the economy rebounds.

Archived article by Sun Staff