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%.
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State Civil Service 2025 Annual Pay Plan Report
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