[NCASG] Minimum Wage Increase and Salary Compression

Thu Apr 29 12:31:05 MDT 2021

Hi Jennifer,

Please see the answers from Louisiana as follows. Would you be able to share your results with me please? Let me know if I can assist with any further questions. Thanks!

  1.  Does your state have a compensation philosophy?  If yes, please share.

Yes, as follows:

It is the policy of the State to maintain labor market competitiveness within the boundaries of financial feasibility. The state is committed to attracting and retaining a diverse workforce of high performing employees with the competencies, knowledge, skills, abilities and dedication needed to consistently provide state services.

  1.  Does your state have any type of plan or guidance related to salary determination?  If yes, please share.

We have pay rules in Chapter 6<https://www.civilservice.louisiana.gov/CSRules/Chapter6.aspx> and a Compensation Administration Guide<https://www.civilservice.louisiana.gov/files/HRHandbook/Updates/2018-0001%20CAG.pdf> that explains the rules as provided in Chapter 6.

  1.  Does your state have any type of plan or guidance to address salary compression?  If yes, please share.

Addressing salary compression is optional and at the appointing authority's discretion. For more info, see SCS Rule 6.16.2 and its reference in the Compensation Administration Guide.

  1.  Does your state modify its pay range minimum and maximum amounts annually?  If so, how are the amounts determined?

We are required to make a recommendation every year in accordance with SCS Rule 6.2(b); however, a recommendation may include not adjusting the structure. Amounts are determined based on external salary data and available funds to bring employees up to the new minimums.

  1.  What type of classification system does your state utilize (i.e., class-based, broadband, etc.)?  How long has it been in effect?

We use a classification system for internal equity combined with market data for external competitiveness. The system in its current form has been used since 2012.

  1.  What types of benefits and/or challenges do you experience with your current classification system?  Is there a system you have used previously that you prefer?

Benefits of the current system is that we can customize classifications as needed to fit agency needs relative to organizational structure, min quals, etc. Challenges are that it is more difficult and time consuming to benchmark agency-specific jobs in salary sources and make comparisons for internal equity across different job series.

  1.  Has your state recently undergone a classification and/or compensation study?  If so, what were the key take-aways, and who completed the study?

Yes, we did a compensation redesign<https://www.civilservice.louisiana.gov/Divisions/Compensation/compensationredesign.aspx> that was implemented 7/1/18. SCS staff did the majority of the work, with an outside consultant giving some advice early in the process. The overall objective was to place the classified system in a position to attract skilled and qualified job candidates with a competitive entry salary, and to provide a means to train and grow an employee's competencies while providing tiered increases aimed at moving the employee to a market value within a time frame conducive to retaining employees in a fiscally responsible manner. Main takeaways were as follows:

*       a 2% general increase was granted to all classified employees on January 1, 2018

*       the State's (6) occupational based classified pay schedules were realigned with the relevant market

*       the static 4% annual performance adjustments were replaced with tiered market based adjustments of 4%, 3% or 2% depending on the employee's position in range

  1.  What vendors have you utilized for assistance regarding statewide classification and compensation, if any?

We have used Neville Kenning on occasion.

Janelle Haynsworth, CCP
Compensation Program Manager
Louisiana State Civil Service
225.342.8266
janelle.haynsworth at la.gov<mailto:janelle.haynsworth at la.gov>

[cid:image001.png at 01D3C5B9.95C56680]<http://www.civilservice.louisiana.gov/>  [cid:image002.png at 01D3C5B9.95C56680] <https://www.facebook.com/LAStateCivilService>   [cid:image003.png at 01D3C5B9.95C56680] <https://twitter.com/LA_SCS>   [cid:image004.png at 01D3C5B9.95C56680] <https://www.linkedin.com/company/27236696/>   [cid:image005.png at 01D3C5B9.95C56680] <https://www.youtube.com/user/LAStateCivilService>   [cid:image006.png at 01D3C5B9.95C56680] <https://www.instagram.com/lastatecivilservice/>

From: Boswell, Jennifer <Jennifer.Boswell at dms.fl.gov>
Sent: Thursday, April 29, 2021 8:44 AM
To: dhr_ncasg_survey_list at admws.idaho.gov
Subject: [NCASG] Minimum Wage Increase and Salary Compression

EXTERNAL EMAIL: Please do not click on links or attachments unless you know the content is safe.

Good morning colleagues,

The state of Florida is in need of your assistance.  In November's general election, our voters approved a constitutional amendment raising the state's minimum wage from $8.65 per hour (effective January 1, 2021) to $10.00 per hour effective September 30, 2021; and raising it an additional $1.00 per hour every September 30th until it reaches $15.00 per hour.  Earlier this week, a legislative proposal was released including a minimum wage increase to $13.00 per hour on July 1, 2021, and tasks each agency with developing a plan to address salary compression as a result of implementing the increase.

Any guidance you can provide, including links and or documents, in reference to the following questions would be greatly appreciated.

  1.  Does your state have a compensation philosophy?  If yes, please share.
  2.  Does your state have any type of plan or guidance related to salary determination?  If yes, please share.
  3.  Does your state have any type of plan or guidance to address salary compression?  If yes, please share.
  4.  Does your state modify its pay range minimum and maximum amounts annually?  If so, how are the amounts determined?
  5.  What type of classification system does your state utilize (i.e., class-based, broadband, etc.)?  How long has it been in effect?
  6.  What types of benefits and/or challenges do you experience with your current classification system?  Is there a system you have used previously that you prefer?
  7.  Has your state recently undergone a classification and/or compensation study?  If so, what were the key take-aways, and who completed the study?
  8.  What vendors have you utilized for assistance regarding statewide classification and compensation, if any?
Thank you all for your assistance,

Jennifer Boswell | Division of State Human Resource Management
850.488.2445 (office)
Florida Department of Management Services
We Serve Those Who Serve Florida

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