A Salary Parity Study of the State's Fiscal Management Employees
Report Number 02-705
The State Classification Office reviewed 2,547 fiscal management positions
and found that 20 percent of these positions may be misclassified. While the
State's salary structure for these positions provides a salary range that is
competitive with the market, the positions' actual salaries remain below the
midpoint of the salary structure.
Chief Financial Officer (CFO) positions in large and medium agencies have competitive
salary structures. Actual salaries for CFOs in large agencies are not competitive
with the market; however, salaries for CFOs in medium agencies are competitive.
Key Facts and Findings
- Twenty percent of fiscal management positions may be misclassified.
Of the 2,547 fiscal management positions reviewed, 519 were identified
as potentially misclassified. The majority of misclassifications occur when
an agency classifies a position at too high or too low a level within the
correct class series based on the employee's duties. A small number of misclassifications
resulted from agencies' classifying positions in the wrong class series.
- The salary structure for fiscal management positions is competitive; however,
actual salaries remain below the midpoint of the salary structure.
Although the State's salary structure provides a salary range that is competitive
with the market, actual salaries for most positions reviewed remain below
the midpoint of the salary structure.
Comparisons with the market show that, on average, the State's salary structure
is 4 percent behind the market for fiscal management positions. Actual salaries
for fiscal management positions are 11 percent behind the market.
For CFO positions, the salary structure is 7 percent behind the market for
large agencies and 11 percent behind the market for medium agencies. However,
the actual salaries for CFOs at large agencies are 20 percent behind the
market. We believe this large of a salary discrepancy is a risk in the State's
efforts to recruit and retain the top-level financial positions in the largest
state agencies. CFOs at medium agencies are only 5 percent behind the market,
reflecting good use of the appropriate state salary ranges.
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