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A University of Wisconsin System Board of Regents committee approved a recommendation for a 2 percent pay increase for UW System employees during a meeting on Thursday.

The UW System Board of Regents’ Business, Finance and Audit Committee approved the recommendation made by UW System President Kevin Reilly earlier this week.

Reilly said UW System salaries are already significantly lagging behind its peers, making it less able to compete and provide for the greater Wisconsin area.

“The UW (System) has to take a lead in the state’s broader economic and social issues,” Reilly said.

Al Crist, UW System Associated Vice President for Human Resources, said the recommendation for the increase came out of a report from the Competitive University Workforce Commission, a group of outside, bipartisan business leaders.

Crist said most of the Big Ten institutions have experienced a 1.5 percent to 3 percent pay increase in the current year while the University of Wisconsin did not experience a pay increase this year.

This will help the system to attract qualified faculty and keep the faculty and staff that they already have, Crist said.

Reilly said the increase is necessary to compensate the faculty and staff who are working hard to serve the students and the broader population.

“The morale of our faculty and staff is suffering,” Reilly said.

He added he was worried that the poor morale might translate into weaker research and academic programs in the UW System.

Regent David Walsh said he agreed with the proposal and trusted the commission’s ability to make a reasonable suggestion.

“I think this is the right thing to do,” Walsh said.

Reilly said he has heard general support for the proposal and has not heard any strong criticism.

According to UW spokesperson David Giroux, the board is required to submit a pay scale recommendation to the state in order for it to be considered by the legislature.

Giroux said the full board will vote on the recommendation today.

The committee also heard a presentation on the Badger Partnership given by Vice Chancellor for Administration Darrell Bazzell.

The Badger Partnership, Chancellor Biddy Martin’s plan to decrease UW’s reliance on state funding, will help the university to compete on a global level and distinguish it from other state agencies.

He said the university would have more flexibility in funding facilities on campus in a more efficient way while maintaining transparency and accountability in the process.

Regent Brent Smith said a danger of the new partnership is the perception that this is UW’s first step toward leaving the UW System.

Smith said he did not agree with the perception, but it is what a lot of people have misconstrued it to be.

The proposal does not mean that UW will be a private university, Bazzell said.

Martin also addressed the board about her trip to China and the importance of maintaining relations with China.

She said it is important to have a presence in China to improve the quality of education students can receive at UW by giving them the opportunity to study abroad, have internships in China and to attract investments from East Asia.

“We are there to help them understand that… the best kept secret when it comes to research and technology development is Madison, Wisconsin,” Martin said.