FREQUENTLY ASKED QUESTIONS

WHAT ARE CURRENT TRENDS IN PUBLIC SECTOR COMPENSATION?

  1. Direct Job-Market Pricing

Agencies are annually re-assigning job classes to new salary ranges on the basis of their individually varying movement in the marketplace instead of merely multiplying their salary range tables by a blanket percentage.

  2. Permanent Salary Range Schedule 

Agencies are "freezing" or redesigning their salary range/grade schedules, and no longer annually altering any of the numbers. Job classes are assigned to higher salary ranges/grades as described in Item 1.

  3. Modification of COLAs

Agencies are abolishing automatic COLAs and combining all funds intended for salary adjustments into a single "prevailing rate maintenance budget" (PRM) providing flexibility and amounts for merit-based increase opportunity.

  4. Open-Range Salary Schedules

Agencies are replacing the steps-in-grade salary schedules with schedules of "open ranges" consisting of Minimum, Midpoint, Maximum, administered on the basis of objectively administered job achievement.

  5. Longevity Recognition Supplements

Agencies are recognizing service outside of the salary range with modest schedules of percentages of the salary range Midpoint at 5 year increments of continuous employment (s/a: 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%)

  6. Occupation-Specific Performance Appraisal

Agencies are replacing their "check-the-box" system with those that eliminate universal criteria, are occupation-specific, minimize subjective supervisory judgment, and increase employee participation.

  7. Diminished "ADA Mania" in Job Analysis

Agencies are realizing that the ADA is not related to compensation, is position, not job class-specific, does not require job descriptions, but only prohibits discriminatory language in job descriptions

  8. Skill-Based Pay Plans

Agencies are exploring the use of skill-based pay plans, combining market job pricing and in range/broadband salary placement upon demonstration of job-related skills, for occupational groups such as public works.

  9. Multiple Salary Policy Formulae

Agencies utilizing quantitative job content evaluation systems are converting from single salary policy line formulae to several prevailing rate lines of central tendency for major occupational job groups.

  10. Custom-Developed Job Evaluation Systems

Agencies installing/replacing such systems are opting for those developed on-site with employee tasks forces to reflect their own internal job worth values, rather than purchasing standard systems.

  11. Replacement of Job Evaluation Systems with Direct Market Pricing

Agencies with less than 500 job classes are opting for salary range determination systems based on benchmark prevailing rates, professional judgment, non-benchmark linkage tables.

  12. Decreased Interest in Broadbanding

Agencies are avoiding broadbanding for lack of objective standards for the placement of an incumbent into a salary band, over-reliance on subjective supervisory judgment, and its dislike/distrust by employees.

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