It seems as if 2023 has flown right by – and 2024 is right around the corner, full of new goals, aspirations, performance metrics, and, of course, new budgets to work within. With the majority of 2024 budgets already in place, you might be wondering why it’s important to discuss funding for staff now, when little should be changing over the next twelve months, but… it’s never too early to start thinking about 2025!
When planning budgets in the modern day, the most modern problem needs to be front and center. As almost any office in the state can attest to right now, one of the biggest problems is staffing. Recruiting, retaining, and ensuring staff are invigorated and performing well is paramount to a functional office and team – and it’s something that everyone is struggling with across the state and country, and nearly every single industry. It’s a complex formula of factors that influence employee recruitment and retention - work environment and culture, benefits, purposeful work, opportunities for advancement – but one factor stands out. Pay.
“Simply put, having a competitive pay scale means attracting quality employees and retaining them.”
The benefits of setting a competitive pay scale are hard to ignore. Alexandra Sheeks is a Principal Associate for Cabot Dow Associates and specializes in the management of compensation projects. She has extensive experience in performing compensation studies and job classification studies for municipal and special purpose local government agencies. At WACO’s 2023 Annual Conference she presented an education session on this specific topic.
“[An] organization needs to have a compensation philosophy and adhere to it when setting a pay scale. The philosophy will drive how, when and why decisions are made. It needs to be applied consistently and equitably.”
Compensation packages are a key component of attracting and retaining skilled staff that are invested in what they do. The minimum and maximum you are willing to pay your employee, and the wiggle room you have within those numbers for change and adjustment, can mean the difference between a position staying open for multiple quarters versus filling within a week.
Most offices have job descriptions and pay scales already in place, but those scales and documents should be reevaluated on a semi-regular basis to stay up to date with current trends, protect offices from extreme levels of turnover, and to make sure roles, responsibilities, and rates of pay are still on par with industry standards and individual office expectations.
“It is not always easy [to tell when you need to reevaluate pay scales].” Says Sheeks, “Signs to watch for include compression, high turnover, or low ratings on employee engagement surveys, exit surveys, or other tools. A schedule to re-evaluate pay scales/market data every few years helps alleviate these issues. Another good way to tell is whether there is anybody around who remembers or who can at least explain how the salary scale got that way. If not, it is probably time to reevaluate!”
So how do you start the pay scale reevaluation? When we look at guidance from the hiring experts at Indeed, they make it seem simple: “Write a detailed job description -> Decide where the position fits within your organization -> Research wages for similar jobs and experience requirements -> Determine the minimum and maximum you will pay a new hire -> Consider compensation -> Hire away!” but the truth is, those steps go deeper than they sound. It will take a little bit of work to evaluate and create something that truly serves your team and attracts the right people – and it all starts with clear communication of your vision, goals, needs, and what you’re willing to compensate.
“When talking about pay scales, it's crucial people understand the terms and use them correctly and consistently.” Sheeks explained, “One example of this is to explain the difference between a salary range and an individual’s specific salary amount. When we set salary schedules, we try to deal more in generalities than in specifics.
Furthermore, you need to define what you mean by ‘competitive.’ Is your goal to pay at the median of your comparable market for each position? Does it mean paying higher than the comparable market in order to have a competitive edge? Did you consider other benefits offered?
Once you’ve answered those questions, you can start getting into the nuts and bolts of the salary structure.”
The entire process may feel overwhelming, but you are not alone in approaching it. Hundreds of resources are available to you at the click of a mouse from industry experts like Indeed and GlassDoor who have articles and resources aimed at the workforce, which helps you understand what new hires are looking for and what aspects of compensation they prioritize. Leading solution providers like Payscale have in-depth research pieces to help you view current trends and conflicts that are on the horizon. Municipal resource services like MRSC have hundreds of articles and resources approaching the topic from all angles.
“This [process is] especially challenging for counties where different elected leaders are responsible for setting their employees’ salaries.” Sheeks told us, “Human resources subject matter experts in your organization, or an outside consultant, if necessary, are key partners in the process. Rationale that is backed up by verifiable, neutral data goes a long way towards gaining acceptance of a new or revised salary schedule.”
Before we let Alexandra leave, we asked her for one piece of wisdom she wished she could share with leaders and teams regarding pay scales and funding for staff – and we could not agree more with her parting words:
“Consistency and objectivity across an organization are so important.”
WATCH WACO’S 2023 ANNUAL CONFERENCE EDUCATION SESSION FUNDING FOR STAFF HERE
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Thank you to WACO Annual Conference Sponsor Washington Department of Enterprise Services for making the 2023 Funding for Staff sessions possible.
DES provides centralized business services to state government agencies; to other public entities such as cities and counties; to tribal governments; and to Washington residents. Their mission is to strengthen the business of government. Learn more: https://des.wa.gov/