[NCASG] DELAWARE--Horizontal and Vertical Salary Compression and movement between union and non-union pay plans

[Gillis, Toni (DHR)]

Good Afternoon,

We are looking for information on how States are dealing with pay compression both vertically and horizontally.
                Delaware has it in epilogue that we will address pay compression but in doing so we are creating pay inequities.
(VERTICLE) The long and short of it is Merit employees upon promotion receive a 5% increase at times that may encroach upon the salary of the supervisor and/or even bypass their salary. In these cases, we have increased the supervisor's salary to be 5% greater then their highest compensated direct report. However, this act may create horizonal compression as that supervisor may bypass other supervisors in the same class with more relevant experience and education creating horizontal compression.

Does your state have a compression rule?
Do supervisors have to make more than their direct reports?
IF you do have experience with addressing compression how does your state handle this situation.

In ~ FY 2008 Delaware made negotiated wages for organized employees legal through a coalition bargaining process.
In ~ FY 2020 Delaware changed the negotiation of wages from coalition bargaining to local bargaining process.
In FY 2021 Delaware delayed negotiations due to COVID unit FY 22.
In FY 2022 Delaware increased the number of Salary Administration Plans (SAPs) from 30 to 69 due to the change to local bargaining.

Over the past few months, we have been struggling with how employees' movement from merit SAPs to Union SAPs from one Union SAP to another Union SAP.  We are wondering how other states with multiple pay plans are handling lateral transfers between pay plans, promotions, and demotions between pay plans.  The SAPs vary in structure, some being step plans (longevity), some having skill levels in the same class, and some being midpoint based.  Starting wages depend on what was negotiated, resulting in a variety of start rates for the same pay grade.

If your state would be willing to share either legislation or rules or processes on how to manage the movement between various SAPs that may be in various different unions that would be great!..

Thanks all


Toni Gillis, SPHR, SCP, HRC, MDC
President-NCASG
Delaware Department of Human Resources
Division of Talent Management
Statewide Manager of Compensation
Toni.Gillis at delaware.gov<mailto:Toni.Gillis at delaware.gov>
Telephone:  (302) 672-5171
Fax: (302) 739-7984


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