Are Public Employers Ready for a “New Pay” Program?

Abstract

Wage and salary management is at a cross-road. After following the same path for almost half a century, a growing number of corporations are moving in a new direction. They have largely abandoned the traditional program concepts and are building new programs around ideas that are still being refined. There is a high level of interest among public employers in moving in the same direction. But at least in the public sector those new concepts are not wholly compatible with the values and beliefs that have served as the foundation for public pay programs. That makes program planners hesitant to take the new path.

The hesitancy is not surprising. Public employers feel the pressure to change but, thus far, very few have implemented and lived with the new program model. Charlotte, NC seems to be the only example of a comprehensive “new pay” program in government. There may be few defenders of the traditional program model, but managers and employees alike are comfortable with that model. The transition from that model to the new one is not going to be easy.

As the leader of the IPMA/AC A workshop on broad banding, I have now had the opportunity to discuss the new pay model with human resource managers from all levels of government. The discussions evidence considerable interest in new ideas in the abstract, but there is also a realization that their organizations may not be ready for the new pay model. This article looks at some of the issues that go into that decision.