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.
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State Civil Service 2025 Annual Pay Plan Report
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