Pros
Treat you well. Raises are a yearly thing--gotten one every year I've been here. Better the university does, the better the raises are. University also keeps an eye on the market of your position, so if they feel that your position is "falling behind" in pay overall across the country, they will bump the overall pay grade up to keep it competitive.
Cons
When they bump the pay-grade up, *everyone* get bumped--so more experienced workers do end up making the same or only very a little bit more than newbies. In AZ, the $ is not posted in open positions, while in IL it is--different kind of job market (AZ is at-will while IL is not). Moving up is can be difficult if only because there are just only a few positions. Timing just has to be right.