Summary of Report 05-701

September 2004

Report Number 05-701

The average state employee’s pay is 17 percent less than the pay of employees performing similar jobs in government or private industry. In addition, the State’s compensation system no longer provides competitive salary ranges. A “one-size-fits-all” solution will not immediately address these problems. However, a mix of compensation strategies can make the State’s compensation system and state employee pay competitive with those of similar jobs in government and private industry. This approach could provide a long-term solution and help the State achieve statewide goals by attracting a quality workforce in the coming tight labor market.

To address the compensation system, the State Classification Office has developed three options for consideration by the Legislature. Each option includes routine maintenance and structure changes and moves the compensation system to a specific market point.

To address employee pay, solutions could include targeted funding for pay equity adjustments, merits, rewards, and other increases; legislation empowering agencies with competitive compensation tools; and a strategic statewide approach toward compensation.

Contact the SAO about this report.

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