Arkansas Governor Sarah Sanders announced a $102 million pay plan that would increase salaries for two-thirds of state employees by an average of 9.8%. The plan aims to bring state employee salaries in line with private labor market rates and target jobs facing employee shortages. The raises would go into effect in July 2025 and would be included in the governor’s budget to be presented to state legislators.
The plan was developed after a review of more than 22,000 job titles and labor market data, with salaries not increasing for the remaining third of employees deemed in line with market rates. The number of job titles would be reduced to about 800, and six employee pay tables would be implemented to offer a clear career track for state employees.
The pay plan is part of the governor’s Arkansas Forward initiative, focused on improving state government efficiency. Based on recommendations from consultant McKinsey & Company, the plan aims to help with recruitment and retention by bringing employee salaries to market rates.
Senate President Pro Tempore Bart Hester and Incoming Speaker of the House Brian Evans both expressed confidence that the plan would easily pass in the Legislature. The plan has received praise for its efforts to address compensation imbalances among state employees and make Arkansas more competitive in workforce recruitment and retention. Arkansans interested in working for the state are encouraged to apply through the state’s career website.
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