Rules Corner:
Targeted Compensation Increases
Targeted “hotspot” funding aims to bring severely under-compensated positions closer to the market. The annual process looks at market data to compile a list of severely under-market positions.
Previously, the targeted funding list used to rely primarily on agency requests based on high turnover, compensation complaints, and difficulty filling positions. The Division of Human Resource Management (DHRM) would then use this information to compare selected positions to seven different market surveys (six published surveys and one custom survey provided to the state every two years).
Starting this year, DHRM approaches the cyclical process differently. The new process takes into consideration 50% market data, 25% agency input, and 25% turnover to determine positions placed on the targeted list. The new breakdown aims to capture a more robust list of jobs that need extra attention and increased funding. This year, DHRM recommended positions that had median salaries 15% or more below market. The proposed increases need funding secured through the legislative process. If approved, agencies can use discretion on dispersing money for the approved positions.
The legislature can approve funding for some, all, or none of the positions. Over the past couple of legislative sessions, the legislature has not funded the targeted positions list which has added to the growing number of severely under-market positions. UPEA is lobbying to get this year’s targeted list funded and is making it a priority to get it funded yearly to reach as many positions as possible. Click here to review the proposed targeted funding list for FY23.
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