MARKET ANALYSIS The market analysis is accomplished by comparing classified pay grade midpoints as well as the actual median salaries of classified employees for the six pay schedules to the market median salaries of public and private sector employers for benchmarked jobs within the relevant labor market. Review of Pay Grade Midpoints Common practices in compensation administration involve comparing the 50th percentile (midpoint) of the pay range to the median market rate when recommending pay structure changes. This is because median salaries are less susceptible to influences caused by outliers in the survey data. The midpoint of a pay grade typically represents an organization’s preferred position relative to the market for the jobs assigned to that pay grade. (WorldatWork, 2024, p. 126). To determine the market position for the six pay schedules, the pay grade midpoints for classified benchmarked jobs were averaged to show a single value representative of each pay schedule. The median salaries of the corresponding jobs surveyed in the public and private sectors were also averaged to provide a single value for comparison as applicable to each pay schedule.
The market position of each pay schedule was calculated by dividing the average pay schedule midpoint by the average median for the applicable sector, and then subtracting 100%.
Review of Employee Median Salaries The analysis in the report uses the same approach as the review of pay grade midpoints, except the jobs with no employees are excluded. Jobs with no employees have a value of $0.00 for the employee median salaries. These jobs are excluded to avoid skewing the average in calculations. This is a different approach for employee median salaries than what was taken in previously published reports. In prior reports, calculations for employee median salaries only included the benchmark jobs that were matched in both the public and private sectors. As a result, fewer employees were included in the analysis. The changes to the analysis this year ensure greater consistency in the comparisons by including every employee that is in a job that was benchmarked. To ensure consistency in the five-year reviews provided in the report, market position calculations for employee median salaries for previous years were re-calculated using archived data. This is why the figures for prior years in this report may differ from the figures for the same years provided in previously published reports.
State Civil Service 2026 Annual Pay Plan Review
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