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.
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State Civil Service 2025 Annual Pay Plan Report
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