Annual Pay Plan 2025

2025 Annual Uniform Pay Plan Review

PREPARED IN ACCORDANCE WITH STATE CIVIL SERVICE RULE 6.2 (A) Byron P. Decoteau, Jr., Director Louisiana State Civil Service

TABLE OF CONTENTS

Definitions

3 4 9

Executive Summary

Introduction

Compensation Survey Practices Benchmarks 11 Salary Surveys & The Relevant Labor Market 12

Occupational Group Comparisons 13 Public/Private Sector Comparisons 13 Pay Structure Competitiveness

Methodology 14 Results 15 Administrative Pay Schedule (AS) 16 Medical Pay Schedule (MS) 17 Protective Services Pay Schedule (PS) 18 Social Services Pay Schedule (SS) 19 Technical & Scientific Pay Schedule (TS) 20 Technician & Skilled Trades Pay Schedule (WS) 21 Pay Structure Competitiveness vs. Last Year

Public Sector 22 Private Sector 23 Median Salary Comparisons

Methodology 24 Results 25 Median Salary Comparisons vs. Last Year

Public Sector 26 Private Sector 27 Percent into Pay Range Analysis

State Civil Service 2025 Annual Pay Plan Report

TABLE OF CONTENTS

Targeted Review of Classified Jobs Impact of Health Insurance Costs

30 31 36 39 40

Conclusion

Recommendations

Appendices

Appendix A: Classified Benchmark Jobs 40 Appendix B: Structure Adjustment & General Increase History 45 References and Acknowledgments 46 Contact Information 47

State Civil Service 2025 Annual Pay Plan Report

DEFINITIONS

Benchmark Job A job commonly found throughout all industries that is used as a reference point to make pay comparisons between employers. Lag The amount by which a reference value, such as the midpoint or actual median salary, falls behind its comparable in the public and/or private sector. May also refer to a compensation strategy to “lag” the market. Market The relevant labor market from which an organization gains or loses employees. Market Competitiveness The ability of the classified pay ranges to effectively recruit and retain talent when competing with other employers outside of state government in the relevant labor market. Market Rate The prevailing rate of compensation employers are paying for a job. For the purposes of this report, it is an average of the actual median salaries for a group of similar benchmark jobs. Median Salary The middle value in a set of data responses that are ranked from lowest to highest and representative of actual salaries. Midpoint The middle value in a defined pay range. It is commonly used to adjust an organization’s competitive position against the market rate for a given job. Pay Range A salary range that an organization is willing to pay for a given job. A pay range consists of a minimum and maximum salary. Private Sector Organizations with a “for profit” status that participated in third-party salary surveys for the relevant labor market area consisting of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. Public Sector Governmental entities and not-for-profit organizations that participated in third-party salary surveys for the relevant labor market area consisting of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

EXECUTIVE SUMMARY

The Annual Uniform Pay Plan Review report provides the research and analysis to support recommendations to improve market competitiveness for the classified service. State Civil Service (SCS) Certified Compensation Professionals prepare this report each year in accordance with WorldatWork best practices. WorldatWork is a nonprofit professional association dedicated to knowledge and leadership in the areas of compensation and total rewards. At its most basic level, “maintaining market competitiveness” means being able to effectively recruit and retain employees. The SCS Commission has charged the SCS Director to maintain market competitiveness within the boundaries of financial feasibility for the classified pay plan by providing recommendations for a pay structure adjustment at least annually. This year, the SCS Director recommends an adjustment of 2.0% for the minimums and maximums of the Medical and Social Services pay schedules to maintain market competitiveness. This recommendation will have an annualized cost of approximately $164,265.71 statewide. Sections in this report provide a variety of information that support the four elements of maintaining market competitiveness: competitive pay ranges, competitive salaries, competitive jobs, and competitive pay solutions. These elements are assessed through comparisons of classified pay structure midpoints, as well as the actual median salaries of classified employees, to their counterparts in the public and private sectors for the relevant labor market area consisting of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. A review of the pay structures provides insight as to whether, overall, the midpoints of the pay ranges are at a competitive position relative to the market. A review of the actual median salaries of classified employees helps to determine if those salaries are tracking appropriately with the market. Details regarding the methodologies used for these figures can be found within the respective sections. Please note that this report does not include data or recommendations for unclassified employees.

State Civil Service 2025 Annual Pay Plan Report

The data indicates, on average, pay schedule midpoints for classified benchmark jobs in some pay schedules continue to lag the median salaries of public and private sector employers in the relevant market. Midpoints of the AS and TS pay schedules lag public sector medians by amounts ranging from -0.7% to -7.0%. Midpoints of the AS, MS, SS, and TS pay schedules lag private sector medians by amounts ranging from -1.6% to -14.6%. PAY STRUCTURE COMPETITIVENESS

TECHNICIAN/ SKILLED TRADES PAY SCHEDULE (WS)

ADMINISTRATIVE PAY SCHEDULE (AS)

MEDICAL PAY SCHEDULE (MS)

PROTECTIVE SERVICES PAY SCHEDULE (PS)

SOCIAL SERVICES PAY SCHEDULE (SS)

TECHNICAL/SCIENTIFIC PAY SCHEDULE (TS)

Public sector lag -7.0 % Private sector lag -14.6%

Public sector lead 6.6% Private sector lag -1.6 %

Public sector lead 4.0% Private sector lead 6.7%

Public sector lead 2.8% Private sector lag -6.2 %

Public sector lag -0.7% Private sector lag -8.2%

Public sector lead 10.7% Private sector lead 0.4%

PAY STRUCTURE COMPETITIVENESS VS. LAST YEAR

Market competitiveness for the six pay schedules has varied over the last year, with four pay schedules decreasing in market competitiveness and two pay schedules increasing in market competitiveness.

On average, the midpoints of the AS, MS, SS, and WS pay schedules have decreased in market competitiveness as compared to both the public and private sectors since last year by amounts ranging from -1.8 (WS) to -4.4 (SS) percentage points for the public sector and from -2.5 (AS) to -4.4 (WS) percentage points for the private sector. In contrast, the average midpoints of the PS and TS pay schedules have increased in market competitiveness as compared to both the public and private sectors since last year because of the pay structure changes implemented for these pay schedules in 2024. Improvements in market competitiveness for the midpoints of these pay schedules are +12.4 (PS) and +3.4 (TS) percentage points as compared to the public sector and +7.1 (PS) and +2.0 (TS) percentage points as compared to the private sector.

DECREASES IN PAY STRUCTURE COMPETITIVENESS SINCE LAST YEAR

PUBLIC SECTOR

4 OF 6

PRIVATE SECTOR

4 OF 6

State Civil Service 2025 Annual Pay Plan Report

The data indicates, on average, actual median salaries of classified employees in benchmark jobs lag public sector medians by amounts ranging from -1.2% to -12.4% and lag private sector medians by amounts ranging from -8.1% to -19.8%. MEDIAN SALARY COMPARISONS

ADMINISTRATIVE PAY SCHEDULE (AS)

•P ublic sector lag: -7.7% •P rivate sector lag: -13.0%

MEDICAL PAY SCHEDULE (MS)

•P ublic sector lag: -1.2% •P rivate sector lag: -8.1%

PROTECTIVE SERVICES PAY SCHEDULE (PS)

•P ublic sector lag: -12.3% •P rivate sector lag: -13.8%

SOCIAL SERVICES PAY SCHEDULE (SS)

•P ublic sector lead: 0.9 % •P rivate sector lag: -8.3%

TECHNICAL/SCIENTIFIC PAY SCHEDULE (TS)

•P ublic sector lag: -3.8% •P rivate sector lag: -10.3%

TECHNICIAN/SKILLED TRADES PAY SCHEDULE (WS)

•P ublic sector lag: -12.4% •P rivate sector lag: -19.8%

Actual median salaries of classified employees generally lag those of public and private sector counterparts and as compared to last year, market competitiveness has decreased further in some cases. On average, actual median salaries for employees in the PS pay schedule has decreased as compared to the public sector since last year by an amount of -5.9 percentage points. As compared to the private sector, actual median salaries for employees in the PS, TS, and WS pay schedules has decreased by amounts ranging from -0.2 (WS) to -11.3 (PS) percentage points. MEDIAN SALARY COMPARISONS VS. LAST YEAR

DECREASES IN COMPETITIVENESS OF ACTUAL MEDIAN SALARIES FOR CLASSIFIED EMPLOYEES SINCE LAST YEAR

PUBLIC SECTOR

1 OF 6

PRIVATE SECTOR

3 OF 6

State Civil Service 2025 Annual Pay Plan Report

PERCENT INTO PAY RANGE ANALYSIS

Percent into range data for all classified employees provides that the majority of classified salaries (73.1%) fall between the minimum and midpoint of their respective pay ranges as of January 1, 2025. Thus, the majority of classified employees are paid at a rate considered to be “below market.” This is an increase of +4.4 percentage points from the 68.6% reported last year. More employee salaries are below their respective midpoints this year as a result of the pay schedule changes that occurred in 2024. The Market Adjustment rule has helped reduce the percentage of employees that are paid below market and remains a key component of the state’s pay philosophy to maintain market competitiveness. However, adjustments to the pay schedules leave employees behind in their respective pay grades. For 2025, nearly three quarters of classified employees are paid at a rate that is considered to be below market.

Distribution of Classified Employees Relative to the Midpoint of the Pay Range

TARGETED REVIEW OF CLASSIFIED JOBS

The targeted review assists in maintaining market competitiveness by analyzing specific benchmarked jobs that have the greatest lags for the pay schedule. To correct these issues, SCS conducts job assessments to realign pay for these occupations. These focused changes can provide a cost savings on improving market competitiveness for the pay schedule, as they can have a positive impact on the overall market competitiveness for the pay schedule.

SCS continually works to improve market competitiveness. Although market lags persist in 2025 for the AS and TS pay schedule midpoints as compared to both public and private sector median salaries, SCS is currently working on solutions to improve market competitiveness for jobs in these pay schedules as a result of the recommendations provided in last year’s report. In addition, multiple job assessments have been completed over the last year by SCS. Job series with pay grade changes and/or new jobs are listed in this section of the report. Furthermore, SCS implemented a pay plan change for the PS pay schedule on August 19, 2024, that helped to improve market competitiveness for this pay schedule. Changes to pay grades and pay schedules tend to have a bigger impact on the market competitiveness of the midpoints of the pay schedules rather than the actual median salaries of classified employees. This is because only employees below the new minimums receive base pay increases to be brought up to the new minimum of their respective pay grade. State Civil Service 2025 Annual Pay Plan Report

Percent into range data for all classified employees provides that, as of January 1, 2023, the majority of classified salaries (55.5%) fall between the minimum and midpoint of their respective pay ranges. Thus, the majority of classified employees are paid at a rate considered to be “below market.” However, the Market Adjustment rule has helped reduce the percentage of employees that are paid below market since 2018 and remains a key component of the state’s pay philosophy to maintain market competitiveness. Although the percentage of employees paid below market has decreased by an amount of less than 3% each year since 2018, a larger percentage of 7.8% was observed in 2023, down from 63.3% of employees paid below market last year. IMPACT OF HEALTH INSURANCE COSTS An assessment of health insurance costs is provided in an effort to show the impact of this cost for classified employees. Although five plan options are offered, most employees choose the Magnolia Local Plus plan. According to the Office of Group Benefits, 80.7% of classified employees who have selected one of the five OGB health plans have chosen the Magnolia Local Plus plan. Information in this section highlights the impact that premiums associated with the Magnolia Local Plus Employee Only and Family coverages may have on employees. These coverages are being highlighted since they are the lowest and highest cost coverages within the most popular plan. It was found that since 2016, premiums have increased by over 47% with an average increase of 5.6% annually since 2020. Premiums associated with the Magnolia Local Plus plan, especially those for Family coverage, may be unaffordable for lower-wage earners. This could result in employees seeking Medicaid as an alternative. For example, approximately 8.1% of employees in the Social Services pay schedule are on Medicaid as of January 1, 2025. It is important to consider the impact of health insurance costs because if employees cannot afford health insurance coverage, they may seek opportunities with other employers.

State Civil Service 2025 Annual Pay Plan Report

INTRODUCTION

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.” – SCS Rule 6.1 “ An organization’s pay philosophy provides the foundation for all pay decisions. The pay philosophy for the classified workforce is provided in SCS Rule 6.1 in order to ensure that pay decisions are aligned with the concept of maintaining labor market competitiveness within the boundaries of financial feasibility. At its most basic level, “maintaining market competitiveness” means being able to effectively recruit and retain employees. There are four elements of maintaining market competitiveness. First, the pay range structures must be at a competitive position relative to the market. Second, the actual salaries of employees must move within their assigned pay ranges to maintain pace with the market as those employees gain experience, skills, and competencies. Third, the jobs assigned to those pay ranges must be regularly evaluated to ensure that the pay ranges continue to be appropriate as

the jobs evolve and the market for those jobs change. Fourth, the compensation philosophy is applied when developing pay solutions to appropriately and conservatively meet the human capital needs of state agencies.

State Civil Service 2025 Annual Pay Plan Report

The Director, after consultation with appointing authorities and the state fiscal officer and after conducting such research as he may deem appropriate, shall cause to be prepared for submission to the Commission, a uniform pay plan, or amendments thereto, for the classified service.” – SCS Rule 6.2(a) “ A uniform pay plan is defined as “a pay plan wherein the pay structure and administrative rules are uniformly applicable to all agencies for positions of the classified service.” The Annual Uniform Pay Plan Review report aligns with SCS Rule 6.2(a) by providing the research necessary to support amendments to the uniform pay plan for the classified service. Through the adoption of SCS Rule 6.2, the Commission has charged the SCS Director to analyze the effectiveness of the uniform pay plan at least annually, and to recommend appropriate changes based upon the results. This report aligns with the four elements of maintaining market competitiveness by providing an assessment of the pay range structures, a review of actual employee salaries, a targeted review of jobs in the classification plan, and recommendations for pay solutions to improve market competitiveness within the boundaries of financial feasibility. After considering the Director’s recommendations at a public hearing, the Commission may adopt changes to the pay plan. However, in accordance with the Louisiana Constitution, these changes become effective only after approval by the Governor.

State Civil Service 2025 Annual Pay Plan Report

COMPENSATION SURVEY PRACTICES

This section of the report describes the process used for the analysis of the pay structures. Certified Compensation Professionals at SCS conducted this analysis according to the practices as recommended by WorldatWork. Founded in the U.S. in 1955, WorldatWork is a nonprofit professional association dedicated to knowledge and leadership in the areas of compensation and total rewards.

The analysis of the pay structures is accomplished by comparing classified pay range midpoints with median salaries for similar jobs within a relevant geographic area. The midpoint of a pay range typically represents an organization’s preferred position or “control point” relative to the market for the jobs assigned to that pay range. In other words, it is the level at which an organization chooses to set its pay for the purpose of recruiting and retaining personnel in comparison to other employers who compete for the same talent (WorldatWork, 2024, p. 126).

BENCHMARKS

First, benchmark jobs are identified for comparison. Benchmark jobs are used as reference points to make pay comparisons between employers within a geographic area. The benchmarking process identifies jobs that are common throughout all industries. Examples include jobs such as administrative assistant, accountant, engineer, registered nurse, electrician, etc. Benchmark jobs typically have broad usage within the relevant market in order to allow for the application of statistically significant sampling methods. Benchmark jobs are used to represent multiple levels within occupations. This allows for the analysis of a “cross- section” of an occupation throughout the job market in order to make pay comparisons of entry-level to entry- level, up through supervisor to supervisor and beyond. For example, a comparison using this method would include the following job titles: • Accountant Technician • Accountants 1, 2, and 3 • Accountant Supervisor • Accountant Manager • Accountant Administrator Benchmark comparisons for hundreds of classified jobs are utilized in this report. A complete listing is provided in Appendix A.

State Civil Service 2025 Annual Pay Plan Report

SALARY SURVEYS AND THE RELEVANT LABOR MARKET

This report will focus on comparisons to the median salaries of employers from the specific states defined as the relevant labor market. Once applicable classified benchmark jobs have been identified, salary information for those jobs is obtained through surveys from third-party compensation survey providers. A review of data for the relevant labor market ensures accurate comparisons across different survey providers. SCS defines the relevant labor market as public and private employers within the South Central and Southeastern regions, preferably in service-providing industries. States used for the analysis in this report in the South Central and Southeastern regions include Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

In an effort to maintain consistency in the collection and analysis of data, the same survey providers have been used over the years as follows: CompAnalyst CompAnalyst Market Data is a compensation data platform that contains salary data for over 15,000 external benchmark jobs. CompAnalyst was used to obtain public and private sector salary data for the relevant market area. CompData Surveys Compdata Surveys is a compensation survey provider that delivers salary data for critical benchmark jobs covering millions of incumbents from thousands of participating organizations across multiple industries in the United States. The Compdata Benchmark Pro and Not-for-Profit surveys were used to obtain public and private sector salary data for the relevant market area. National Compensation Association of State Governments NCASG is a national organization composed of state government human resources professionals. The mission of NCASG is to provide a forum for compensation professionals from member states to exchange information, professional expertise, and knowledge related to the compensation of state government employees. Annually, NCASG conducts a compensation survey that collects salary data from participating states for a variety of jobs typically found in state government. This survey was used to obtain public sector salary data for the relevant market area. State Civil Service 2025 Annual Pay Plan Report

Louisiana’s pay plan divides state classified jobs into six pay schedules based on broad occupational categories. The six pay schedules are listed below. The jobs within each pay schedule have relatively similar recruitment, retention, and compensation needs. Therefore, salary data was analyzed separately for each of these six pay schedules. OCCUPATIONAL GROUP COMPARISONS

PUBLIC/PRIVATE SECTOR COMPARISONS

Salary data from both public sector and private sector employers were included in this analysis. However, the sectors are shown separately in this report since the relative value of the different comparisons may vary due to the jobs that were available for comparison in each group. For the majority of classified jobs, competition for skilled employees comes not from other states, but from private employers within Louisiana. For example, an Accountant that is considering employment with the Department of Transportation and Development would be more likely to compare the offerings of state employment to those of local private competitors such as Exxon, IBM, Blue Cross and Blue Shield of Louisiana, etc. Part of defining the relevant labor market involves identifying employers within the same industry. State government is a public sector entity. For this reason, it is important to show a comparison against public sector data as well.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS

The following methodology is used for this section to compare classified pay schedule midpoints to market median salaries for comparable benchmark jobs. Common standards in compensation administration suggest 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 (Lind 2015). CLASSIFIED PAY SCHEDULE MIDPOINTS VS. MARKET MEDIAN SALARIES METHODOLOGY

Classified jobs were matched to benchmark jobs in the public and private sectors.

Pay range midpoints were identified for each classified benchmark job.

Median salaries were identified for each corresponding benchmark job in the public and private sectors.

A separate analysis was completed for each sector since some classified benchmark jobs were isolated to one sector.

Classified pay schedule midpoints for benchmarked jobs were averaged to show a single value representative of the pay schedule for the matches in each sector. The median salaries of the surveyed jobs in each sector were also averaged to provide a single value for comparison.

The lag of the classified pay schedules was calculated by dividing the average pay schedule midpoint by the average median for the applicable sector, and then subtracting 100%.

State Civil Service 2025 Annual Pay Plan Report

As of January 1, 2025, pay range midpoints for benchmarked jobs in the AS, MS, SS, and TS pay schedules lag the median salaries of private employers by amounts ranging from -1.6% (MS) to -14.6% (AS). When compared to the public sector, pay range midpoints for benchmarked jobs in the AS and TS pay schedules lag the median salaries by amounts ranging from -7.0% and -0.7% respectively. The graph below shows the percentages by which the average classified pay schedule midpoint lags or leads the corresponding public and private sector median for benchmarked jobs. A detailed comparison for each pay schedule can be found on the following pages. PAY STRUCTURE COMPETITIVENESS - RESULTS

Competitiveness of Classified Pay Schedule Midpoints for Benchmarked Jobs by Pay Schedule

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

Negative percentages below the “market” line indicate that, on average, pay schedule midpoints lag the median salaries of the benchmarked jobs for that sector. Positive percentages above the “market” line indicate that, on average, pay schedule midpoints lead the median salaries of the benchmarked jobs for that sector.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Administrative Pay Schedule (AS)

Classified Benchmark Jobs 155

6,298

-7.0 % Lag Public Sector Median Salaries

-14.6 % Lag Private Sector Median Salaries

Classified Employees in Benchmark Jobs

A total of 155 jobs were benchmarked in the Administrative “AS” pay schedule which represents 6,298 classified employees as of January 1, 2025. Jobs in this category include Administrative Coordinators, Accountants, Attorneys, Human Resource Analysts, etc. The graph below shows AS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the AS pay schedule is, on average, -7.0% lower than competing public employers and -14.6% lower than competing private employers. AS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

10,689

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

Full-Time, Regular Classified Employees in the AS Pay Schedule as of 1/1/2025

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Medical Pay Schedule (MS)

Classified Benchmark Jobs 48

1,169

6.6 % Lead Public Sector Median Salaries

-1.6 % Lag Private Sector Median Salaries

Classified Employees in Benchmark Jobs

A total of 48 jobs were benchmarked in the Medical “MS” pay schedule which represents 1,169 classified employees as of January 1, 2025. Jobs in this category include Nursing Assistants, Nurses, Physical Therapists, etc. The graph below shows MS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the MS pay schedule is, on average, 6.6% higher than competing public employers and -1.6% lower than competing private employers. MS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

Full-Time, Regular Classified Employees in the MS Pay Schedule as of 1/1/2025 2,637

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Protective Services Pay Schedule (PS)

Classified Benchmark Jobs 44

3,929

4.0 % Lead Public Sector Median Salaries

6.7 % Lead Private Sector Median Salaries

Classified Employees in Benchmark Jobs

A total of 44 jobs were benchmarked in the Protective Services “PS” pay schedule which represents 3,929 classified employees as of January 1, 2025. Jobs in this category include Police Officers, Corrections Officers, Probation & Parole Officers, etc. The graph below shows PS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the PS pay schedule is, on average, 4.0% higher than competing public employers and 6.7% higher than competing private employers. PS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

Full-Time, Regular Classified Employees in the PS Pay Schedule as of 1/1/2025 5,698

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Social Services Pay Schedule (SS)

Classified Benchmark Jobs 41

2,081

2.8 % Lead Public Sector Median Salaries

-6.2 % Lag Private Sector Median Salaries

Classified Employees in Benchmark Jobs

A total of 41 jobs were benchmarked in the Social Services “SS” pay schedule which represents 2,081 classified employees as of January 1, 2025. Jobs in this category include Psychiatric Aides, Social Workers, Social Service Analysts, etc. The graph below shows SS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the SS pay schedule is, on average, 2.8% higher than competing public employers and -6.2% lower than competing private employers.

SS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

Full-Time, Regular Classified Employees in the SS Pay Schedule as of 1/1/2025 6,142

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Technical & Scientific Pay Schedule (TS)

Classified Benchmark Jobs 137

2,686

-0.7 % Lag Public Sector Median Salaries

-8.2 % Lag Private Sector Median Salaries

Classified Employees in Benchmark Jobs

A total of 137 jobs were benchmarked in the Technical & Scientific “TS” pay schedule which represents 2,686 classified employees as of January 1, 2025. Jobs in this category include Biologists, Engineers, Information Technology, etc. The graph below shows TS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the TS pay schedule is, on average, -0.7% lower than competing public employers and -8.2% lower than competing private employers.

TS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

Full-Time, Regular Classified Employees in the TS Pay Schedule as of 1/1/2025 4,601

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS Technician & Skilled Trades Pay Schedule (WS)

Classified Benchmark Jobs 63

4,130 10.7 % Lead

0.4 % Lead Private Sector Median Salaries

Classified Employees in Benchmark Jobs

Public Sector Median Salaries

A total of 63 jobs were benchmarked in the Technician & Skilled Trades “WS” pay schedule which represents 4,130 classified employees as of January 1, 2025. Jobs in this category include Carpenters, Electricians, Maintenance Repairers, Mobile Equipment Operators, etc. The graph below shows WS pay schedule midpoints as compared to median salaries for equivalent benchmark jobs in the public and private sectors. According to this data, the WS pay schedule is, on average, 10.7% higher than competing public employers and 0.4% higher than competing private employers. WS Classified Midpoints vs. Market Median Salaries for Benchmarked Jobs

*The difference in the Average Classified Midpoints is a result of the sampling of different benchmark jobs for the public and private sector.

Full-Time, Regular Classified Employees in the WS Pay Schedule as of 1/1/2025 5,840

The public and private sector include states in the southern region, which consists of Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas.

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS vs. Public Sector: Two-Year Overview

The following graph shows, on average, how classified pay schedule midpoints have compared over the last year to the median salaries paid by public sector employers for benchmarked jobs. Since last year, market competitiveness has varied for the pay schedules as compared to the public sector. The PS and TS pay schedules have increased market competitiveness by +12.4 and +3.4 percentage points respectively, while the AS, MS, SS, and WS pay schedules have decreased market competitiveness by amounts ranging from -1.8 (WS) to -4.4 (SS) percentage points. The improvements in market competitiveness are due to the pay structure changes implemented for the PS and TS pay schedules in 2024. CLASSIFIED PAY SCHEDULE MIDPOINTS VS. MARKET MEDIAN SALARIES

Competitiveness of Classified Midpoints vs. Public Sector Median Salaries by Pay Schedule 2024-2025

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

State Civil Service 2025 Annual Pay Plan Report

PAY STRUCTURE COMPETITIVENESS vs. Private Sector: Two-Year Overview

The following graph shows, on average, how classified pay schedule midpoints have compared over the last year to the median salaries paid by private sector employers for benchmarked jobs. Since last year, market competitiveness has varied for the pay schedules as compared to the private sector. The PS and TS pay schedules have increased market competitiveness by +7.1 and +2.0 percentage points respectively, while the AS, MS, SS, and WS pay schedules have decreased market competitiveness by amounts ranging from -2.5 (AS) to -4.4 (WS) percentage points. The improvements in market competitiveness are due to the pay structure changes implemented for the PS and TS pay schedules in 2024. CLASSIFIED PAY SCHEDULE MIDPOINTS VS. MARKET MEDIAN SALARIES

Competitiveness of Classified Midpoints vs. Private Sector Median Salaries by Pay Schedule 2024-2025

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

State Civil Service 2025 Annual Pay Plan Report

MEDIAN SALARY COMPARISONS

CLASSIFIED MEDIAN SALARIES VS. MARKET SALARIES

Another component of maintaining market competitiveness involves assessing where employees are within their respective pay ranges. The next section provides a review of the competitiveness of the actual salaries for classified employees.

METHODOLOGY

The following methodology was used to compare median salaries of classified employees to market median salaries for comparable benchmark jobs.

Classified jobs were matched to benchmark jobs in the public and private sectors. Only those classified benchmark jobs that were matched in both the public and private sectors were included in this analysis.

A median salary was identified for each classified benchmark classified job.

Median salaries were identified for the corresponding benchmark job that was matched in both the public and private sectors.

For each classified pay schedule, an overall median value was calculated from the actual median salaries for the classified benchmark jobs, the public sector benchmark jobs, and the private sector benchmark jobs.

The lag of the classified median salaries was calculated by dividing the overall classified median by the overall median for the applicable sector, and then subtracting 100%.

State Civil Service 2025 Annual Pay Plan Report

MEDIAN SALARY COMPARISONS - RESULTS

As compared to the public sector, the actual median salaries of classified employees in the AS, MS, PS, TS, and WS pay schedules lag the median salaries for equivalent benchmark jobs by amounts ranging from -1.2% (MS) to -12.4% (WS) as of January 1, 2025. As compared to the private sector, the actual median salaries of classified employees in all six pay schedules lag the median salaries for equivalent benchmark jobs by amounts ranging from -8.1% (MS) to -19.8% (PS) as of January 1, 2025.

Competitiveness of Classified Median Salaries for Benchmarked Jobs By Pay Schedule

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

State Civil Service 2025 Annual Pay Plan Report

MEDIAN SALARY COMPARISONS vs. Public Sector: Two-Year Overview

The following graph shows, on average, how classified median salaries have compared over the last year to the median salaries paid by public sector employers for benchmarked jobs. Since last year, market competitiveness for actual median salaries of classified employees in the AS, MS, SS, TS, and WS pay schedules have increased as compared to the public sector by amounts ranging from +0.3 (AS, MS, WS) to +2.2 (SS) percentage points while the actual median salaries of employees in the PS pay schedule have decreased as compared to the public sector by -5.9 percentage points. CLASSIFIED MEDIAN SALARIES VS. MARKET MEDIAN SALARIES

Competitiveness of Classified Median Salaries vs. Public Sector Median Salaries by Pay Schedule 2024-2025

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

State Civil Service 2025 Annual Pay Plan Report

MEDIAN SALARY COMPARISONS vs. Private Sector: Two-Year Overview

CLASSIFIED MEDIAN SALARIES VS. MARKET MEDIAN SALARIES

The following graph shows, on average, how classified median salaries have compared over the last year to the median salaries paid by private sector employers for benchmarked jobs. Since last year, market competitiveness for actual median salaries of classified employees in the AS, MS, and SS pay schedules have increased as compared to the private sector by amounts ranging from +0.2 (AS) to +1.5 (SS) percentage points while the actual median salaries of employees in the PS, TS, and WS pay schedules have decreased as compared to the private sector by amounts ranging from -0.2 (WS) to -11.3 (PS) percentage points.

Competitiveness of Classified Median Salaries vs. Private Sector Median Salaries by Pay Schedule 2024-2025

MARKET

AS = Administrative Pay Schedule MS = Medical Pay Schedule PS = Protective Services Pay Schedule

SS = Social Services Pay Schedule TS = Technical & Scientific Pay Schedule WS = Technician & Skilled Trades Pay Schedule

State Civil Service 2025 Annual Pay Plan Report

PERCENT INTO PAY RANGE

ANALYSIS OF CLASSIFIED SALARIES

This section of the report provides an overview of where actual salaries for classified employees fall within their respective pay ranges. The classified pay structure includes a set of pay ranges for each of the six occupational pay schedules. Each pay range consists of a minimum and a maximum salary. An employee typically starts at the minimum of the pay range and, over a career, progresses toward the maximum. The following graph provides an illustration of the distribution of classified employees within their respective pay ranges as of January 1, 2025. Approximately 73.1% of classified employees are paid at a rate between the minimums and the midpoints of their respective pay ranges, which is considered below market.

Distribution of Classified Workforce in Pay Ranges 2025

The Market Adjustment rule is the primary means by which an employee’s pay progresses through the pay range assigned to the job. The rule was designed to move an employee’s pay to the midpoint of the pay range more quickly over time. Under this rule, eligible classified employees receive a base pay increase each year on July 15th. Employees with a rate of pay up to the midpoint of the pay range receive 4% each year and employees with a rate of pay over the midpoint receive 3% each year until the range maximum is reached.

State Civil Service 2025 Annual Pay Plan Report

Overall, the Market Adjustment rule has helped to reduce the percentage of classified employees who are paid below their midpoints since the pay ranges were realigned from the Compensation Redesign on January 2, 2018. However, this figure has shifted upwards by +13.1 percentage points for 2024 and by +4.5 percentage points for 2025 because of adjustments to the pay schedules. The graph below shows a comparison of percent into range figures over the last four years. Data labels have been added to the segments where the employee distribution exceeds 5%.

Distribution of Classified Workforce in Pay Ranges 2022-2025

These are important figures because it illustrates why the Market Adjustment is a necessary part of the classified pay philosophy of maintaining market competitiveness. Without it, pay for employees in the classified workforce would fall further behind their public and private sector counterparts. If the salaries of classified employees do not continue to move with the market, they may seek other job opportunities outside of state government and the state could realize higher turnover costs consequently. However, it is evident that adjustments to the pay schedules leave employees behind in their respective pay grades. In 2018, 68.5% of classified employee salaries fell between the minimums and the midpoints of their respective pay ranges. For 2023, that number had reduced to 55.5%. As a result of pay structure adjustments impacting multiple pay schedules, the percentage of employees paid below their respective midpoints increased to 68.6% for 2024 and to 73.1% for 2025.

State Civil Service 2025 Annual Pay Plan Report

It is necessary that SCS conduct a targeted review of classified occupations as needed to ensure that the pay ranges continue to be appropriate as jobs evolve and the market for those jobs change. A targeted review considers specific jobs and their pay levels in order to have a positive impact on the market competitiveness for the pay schedule. Additionally, a review of specific jobs may result in a cost savings in the overall administration of a uniform classification and pay plan by providing a focus on those areas that are causing the greatest lags. Although market lags persist for the midpoints of the Administrative “AS” pay schedule as well as the Technical & Scientific “TS” pay schedule as compared to both public and private sector medians in 2025, SCS is currently working on solutions to improve market competitiveness for jobs in these pay schedules. Accordingly, SCS will continue to monitor the six pay schedules over the next year to determine if additional adjustments to the pay grades of specific jobs are needed. TARGETED REVIEW OF CLASSIFIED JOBS SCS has implemented multiple job assessments over the last year, from January 2024 to January 2025. The job assessments with new jobs and/or pay grade changes implemented during this time frame are listed below. IMPROVEMENTS TO MARKET COMPETITIVENESS SINCE LAST YEAR

In addition, SCS works to improve market competitiveness by adjusting the pay structures when needed. The following changes have been implemented over the last year. • The PS pay schedule was amended effective August 19, 2024. This pay plan change involved raising the maximum of the lowest pay grade up by 12.4% and then raising the other pay levels in this pay schedule to maintain a 7% midpoint differential to align with current market standards. Although minimums did not change, midpoints increased by an average of 7.97% and maximums increased by an average of 12.40%. Changes to the pay grades and pay schedules tend to have a larger impact on the pay schedule midpoints than actual employee salaries. This is because only employees with a rate of pay that is below the minimum of their respective pay grade receive a pay increase to be brought up to the new minimum when these types of changes are implemented. This approach may cause pay compression issues over time if frequent structure adjustments are needed to maintain pace with the market. Pay compression can exist when new hires are hired at levels similar to employees who have been with the state for several years. Agencies may address pay compression issues for permanent employees under SCS Rule 6.16.2, Optional Pay for Compression, if funding is available for this purpose. State Civil Service 2025 Annual Pay Plan Report

The Total Rewards model has been established by WorldatWork as a best practice since 2000 for the recruitment and retention of employees. According to WorldatWork, Total Rewards consists of five components that include compensation, benefits, well-being, careers, and recognition. An assessment of health insurance costs is provided in the report to show the impact of these costs to employees since health insurance premiums are generally consistent across state agencies. This aspect of benefits is important to consider in the overall market competitiveness of the classified system because it impacts employee base compensation through deductions. If employees cannot afford coverage, they may seek opportunities with other employers. IMPACT OF HEALTH INSURANCE COSTS HEALTH INSURANCE OVERVIEW The Office of Group Benefits offers five health plan options for employees in 2025. SCS worked with OGB to identify the plan selections of classified employees. The following table provides an overview of these figures. Percentages are based on a total of 28,128 employees who are the primary subscriber for the selected insurance plan through OGB. Of this number, 80.7% have chosen the Magnolia Local Plus option.

HEALTH PLAN SELECTIONS BY CLASSIFIED EMPLOYEES 2025

Pay Schedule

Magnolia Open Access

Magnolia Local

Magnolia Local Plus

Pelican 1000 Pelican 775 All Plans

1.5% 0.3% 0.4% 0.8% 0.7% 0.4% 4.2%

0.8% 0.1% 0.2% 0.3% 0.3% 0.2% 1.9%

25.1%

1.7% 0.3% 0.9% 1.2% 0.8% 1.0% 6.0%

2.3% 0.4% 0.6% 0.7% 2.0% 1.2% 7.1%

31.4%

6.1%

7.2%

PS SS TS

14.1% 14.4% 10.7% 10.3% 80.7%

16.2% 17.4% 14.6% 13.2% 100.0%

Statewide

Data as of January 1, 2025. Percentages based on a total of 28,128 classified employees.

The following table provides an overview of coverage selections for the most popular plan, the Magnolia Local Plus. Available coverages include Employee Only, Employee + Child(ren), Employee + Spouse, and Family. The percentages in the table are based on a total of 22,712 employees who have chosen the Magnolia Local Plus plan. Of this number, 57.8% have selected “Employee Only” coverage. MAGNOLIA LOCAL PLUS COVERAGE SELECTIONS BY CLASSIFIED EMPLOYEES 2025 Pay Schedule Employee Only Employee + Child(ren) Employee + Spouse Family All Coverages AS 18.2% 7.4% 2.3% 3.2% 31.1% MS 3.6% 2.1% 0.6% 1.2% 7.6% PS 10.6% 4.2% 1.0% 1.6% 17.5% SS 10.8% 4.8% 0.9% 1.4% 17.8% TS 6.4% 3.2% 1.1% 2.5% 13.2% WS 8.2% 1.9% 1.4% 1.3% 12.8% Statewide 57.8% 23.6% 7.3% 11.2% 100.0% Data as of January 1, 2025. Percentages based on a total of 22,712 classified employees.

State Civil Service 2025 Annual Pay Plan Report

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