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| Last Revision: | 07/24/2008 |
| Posted to Website: | 04/24/2008 |
Appropriate Market Rate
Each position competency level has unique market rates. Market rates represent an average of salaries in the labor market used when comparing benchmark jobs to relevant local, state or national market data. These rates are determined by OSP and are gathered through in-house salary surveys or published compensation survey reports.
Market rates are regularly monitored by OSP and adjusted, when necessary, to reflect changes in labor markets as reported in industry compensation surveys. State agencies and universities may vary from the market rates within limits based on their unique labor market. Compensation is managed to the market rates versus the salary grade maximum as was the case in the State's traditional compensation system.
Managers make salary recommendations around the applicable competency level market rate. Consideration is given to the market rate for the position, related labor market information and market dynamics. Salaries are expected, but not required, to be within guidelines established for the position's assigned competency level.
Examples of competency level guidelines:
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Contributing Competency Level Guidelines
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Journey Competency Level Guidelines
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Advanced Competency Level Guidelines
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Role
|
Overall Band Min
|
Contributing Market Rate
|
Contributing Max
|
Journey Min
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Journey Market Rate
|
Journey Max
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Advanced Min
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Advanced Market Rate
|
Overall Band Max
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| Technician |
23,000
|
33,825
|
37,208
|
37,209
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40,590
|
45,461
|
45,462
|
50,332
|
58,000
|
| Analyst |
30,000
|
42,031
|
47,916
|
47,917
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53,800
|
56,759
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56,760
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59,718
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68,000
|
| Specialist |
39,816
|
48,387
|
54,194
|
54,195
|
60,000
|
64,500
|
64,501
|
69,000
|
83,925
|
| Manager |
49,000
|
69,767
|
79,884
|
79,885
|
90,000
|
96,300
|
96,301
|
102,600
|
115,000
|
| Director |
70,000
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89,344
|
99,172
|
99,173
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109,000
|
116,630
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116,631
|
124,260
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140,000
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Contributing Competency Level Guidelines: The salary for an employee in a position with required competencies at the contributing competency level shall generally be below the journey market rate guidelines, but not below the minimum of the overall career band for the role.
Journey Competency Level Guidelines: The salary for an employee in a position with required competencies at the journey competency level shall generally be within the journey market rate guidelines, unless financial resources or other pay factors prevent this.
Advanced Competency Level Guidelines: The salary for an employee in a position with required competencies at the advanced competency level shall generally be above the journey market rate guidelines, unless financial resources or other pay factors prevent this. Salaries shall not exceed the maximum of the career band for the role.
Note that although an employee must not be paid either below the band minimum or above the band maximum, the competency level guidelines are not hard and fast rules. Management is accountable for justification of any pay recommendation, which must be based on the fair and consistent application of the pay factors.
The Market Index is another tool available to managers which reflects where an employee's salary is in relation to the market rate for the position. It is calculated by dividing the employee's salary by the competency level market rate. The index is expressed as 100 percent being at market, with 95 percent indicating 5 percent below market and 105 percent indicating 5 percent above market. The Market Index can be used to help compare how several employees' salaries stand in relation to each other and their respective market rates.
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