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Public Sector Pay

Public Sector Pay. Challenges and Solutions Created for WAGE by Jill E. Carter. What do we want to do today?. Discuss the Following C hallenges R elated to Public S ector P ay: Base Salary Increases Pay for Performance (really?) Compression Pay Equity

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Public Sector Pay

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  1. Public Sector Pay Challenges and Solutions Created for WAGE by Jill E. Carter

  2. What do we want to do today? • Discuss the Following Challenges Related to Public Sector Pay: • Base Salary Increases • Pay for Performance (really?) • Compression • Pay Equity • Pay Structures Keeping Current with the Market • Market Reference Points • Competency-based • Skills-based • Longevity-based • The Role of the Policymaker • Public Perception • Potential Solutions • Acquire Relevant Market Data • Hire Competitively • Educate the Policymaker • Educate the Workforce • Answer Your Questions Throughout

  3. Base Salary Increases • Issue: Keeping Employees’ Base Salary at a Living Wage Level • Pay for Performance • Conditions that must exist prior to Paying for Performance • Failure to Launch • Cost of Living Adjustments • Outdated Term • Public Perception • Merit Increase • Defined • Compression • Pay Equity

  4. Pay Structures • Issue: Keeping competitive with the market • Pay Structure Philosophy: Lead, Lag or Current with Market • Significance of the Pay Structure Midpoint (Market Reference Point/MRP) • Pay Range Length • Steps vs. Open Pay Ranges • Base Salary Movement and Pay Structure Movement • Compression in the Range • Internal Equity vs. External Equity

  5. The Role of the Policymaker • Who is the Policymaker? • How does the Policymaker See Her/His Role? • What is the Most Efficient Role of the Policymaker? • Evolving the Role of the Policymaker

  6. Public Perception • What is the Public’s Perception of Public Sector Pay? • Why is that the Public’s Perception? • What are Effective Ways of Managing Public Perception?

  7. Potential Solutions • Acquire Relevant Market Data • Third-party Providers • In-house Survey • Hire Competitively • Educate the Policymakers • Educate the Workforce

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