Post on 08-Jan-2016
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Public Sector Pay Challenges and Solutions
Created for WAGE by Jill E. Carter
What do we want to do today?
• Discuss the Following Challenges Related to Public Sector Pay:• Base Salary Increases
• Pay for Performance (really?)• Compression• Pay Equity
• Pay Structures Keeping Current with the Market
• Market Reference Points• Competency-based• Skills-based• Longevity-based
• The Role of the Policymaker• Public Perception• Potential Solutions• Acquire Relevant Market Data• Hire Competitively• Educate the Policymaker• Educate the Workforce
• Answer Your Questions Throughout
Base Salary Increases
• Issue: Keeping Employees’ Base Salary at a Living Wage Level• Pay for Performance
• Conditions that must exist prior to Paying for Performance
• Failure to Launch• Cost of Living Adjustments
• Outdated Term• Public Perception
• Merit Increase• Defined
• Compression• Pay Equity
Pay Structures
• Issue: Keeping competitive with the market• Pay Structure Philosophy: Lead, Lag or Current with Market• Significance of the Pay Structure Midpoint (Market Reference
Point/MRP)• Pay Range Length• Steps vs. Open Pay Ranges• Base Salary Movement and Pay Structure Movement• Compression in the Range• Internal Equity vs. External Equity
The Role of the Policymaker
• Who is the Policymaker?
• How does the Policymaker See Her/His Role?
• What is the Most Efficient Role of the Policymaker?
• Evolving the Role of the Policymaker
Public Perception
• What is the Public’s Perception of Public Sector Pay?• Why is that the Public’s
Perception?
• What are Effective Ways of Managing Public Perception?
Potential Solutions
• Acquire Relevant Market Data• Third-party Providers• In-house Survey
• Hire Competitively
• Educate the Policymakers
• Educate the Workforce