With the implementation of market adjustments at the Oklahoma Department of Transportation, the Oklahoma Public Employees Association encourages all state agencies to take an aggressive approach toward pay raises for their employees.
ODOT recently announced a series of market adjustments that will be phased in with the first phase already implemented on August 1st, with a follow-up phase two beginning December 1. The adjustments were based on a study of the Office of Personnel Management’s Compensation Study as well as national data reflective of the transportation industry.
According to ODOT officials, the agency was experiencing recruitment and retention problems because of salaries that were not keeping pace with their competition within the industry.
According to Title 74, 840-2.17, agencies are prohibited from granting pay raises to employees unless the agency uses a method authorized by the Legislature. Pay movement mechanisms have been established to authorize agencies to grant pay increases for employees in the classified service but may also use the mechanisms’ for the unclassified service as well.
ODOT utilized the permissive language made available after the 1998-99 Classification Reform Act which added Section B of Title 74 840-2.17, dealing with compensation. This section describes eight compensation adjustments the agency may make if the agency can certify to the appointing authority that the actions can be implemented for the current and subsequent fiscal years. One of these areas is Market Adjustments for job families tied to market competitiveness.
According to OPEA, any agency can utilize the information contained within the OPM Compensation report or any other market comparison data to justify market adjustments, the rub is having the money to fund them.
“Many agencies simply do not have the funding to do these types of market adjustments,” said OPEA Executive Director Sterling Zearley. “However, we applaud ODOT for taking a very aggressive stance with this pay adjustment and encourage all state agencies to look a this approach to granting state employees a much needed adjustment. For the agencies that cannot afford this, the information on the need for additional market compensation adjustments should be plugged into their budget requests for FY 2010 so the legislature is well-aware that compensation is high on the list of every state agency.”
OPM recommends this as well. In the OPM recommendations contained in their Pay Movement Mechanism Report for 2007, OPM encourages state agencies: ‘Agencies should continue to focus on developing and implementing strategic compensation plans that are aligned with and support their missions, business objective, and goals. Such plans should consider labor market trends and work force demographics and skills mix, as well as data on recruitment and retention.’
OPEA has extended its hand to any state agency wishing to partner on pay movement mechanism for state employees. “We are committed to helping any state agency that wants to work on improving their employee’s compensation outside of the legislative process,” said Zearley. “We realize that it is difficult to fund, but this legislature must begin to fully realize that agency heads cannot run efficient agencies without a highly motivated workforce. That includes pay.”
While OPEA applauds ODOT for their initiative, we realize all state employees deserve fair compensation. OPEA will continue to lobby the legislature on your behalf to bring state employees salaries to market levels.
Posted on Monday, August 25, 2008
by Mark Beutler
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