Sanders Announces New State Employee Pay Plan

LITTLE ROCK, Ark. - Governor Sarah Huckabee Sanders today announced a state employee pay plan overhaul that streamlines career tracks, consolidates job titles, and brings state employee pay up to labor market rates.

"This pay plan is exactly the type of transformational reform I promised when I ran for office," said Governor Sanders. "We took the existing pay plan down to its studs to rebuild a compensation system that rewards hard work and encourages Arkansans to apply to our most hard-to-fill positions. I look forward to working with the legislature to pass this plan and deliver these long overdue reforms for our state employees."

"I am so proud of the work the TSS team has done over many months to put forward a reimagined pay plan that the Governor promised. The new pay plan will ensure our state employees are competitively compensated for the incredible work they do for the state of Arkansas. This new pay plan allows us to be flexible and competitive in the market both now and moving forward. Consider working with us - apply now at arcareers.arkansas.gov," said Secretary of Transformation and Shared Services Leslie Fisken.

"It has been a privilege to collaborate with the Governor and her staff in crafting a new state employees' pay plan. This investment is much needed to recognize and retain our great state employees and to attract qualified candidates. Creating career paths, increasing the ability to react to changing labor market rates, and investing more in high performing employees are innovations much needed in state government. We look forward to working with the members of the Arkansas General Assembly to the ensure its passage," said Executive Director of the Arkansas State Employees Association John Bridges.

"The Arkansas State Police Foundation appreciates the Governor's initiative to increase trooper pay! Competitive compensation is indeed vital for attracting and retaining skilled troopers. This investment not only boosts morale among current troopers but also strengthens public safety across Arkansas," said President of the Arkansas State Police Foundation Board Elizabeth Anderson.

The proposed pay plan raises compensation for 14,539 state employees, around two-thirds of the Cabinet agencies' workforce. The pay increases are intended to bring state employees up to comparable private labor market rates and are targeted toward employment areas facing chronic shortages, like:

• Correctional officers, where average entry-level salaries will increase by 35.3%, from $37,589 to $50,845, and average salaries will increase by 17.1%, from $50,461 to $59,100.
• Social services, where average entry-level salaries will increase by 20.5%, from $44,172 to $52,442, and average salaries will increase by 15.3%, from $48,733 to $55,364.
• State Police, where average entry-level salaries will increase by 19.8%, from $56,498 to $67,706, and average salaries will increase by 10.4%, from $73,318 to $80,930.
• Nursing, where average entry-level salaries will increase by 8.3%, from $51,032 to $54,661, and average salaries will increase by 9.6%, from $57,686 to $61,552.

Additionally, the pay plan overhaul consolidates approximately 2,200 current job titles into just over 800 proposed job titles that match their equivalent in the private labor force. It also expands the number of employee pay tables to six: law enforcement & safety, medical, information systems & technology, state general services, professionals, and executives. These additional tables will ensure Arkansas stays competitive in staffing areas facing chronic shortages.

By streamlining agency structures, this pay plan offers state employees a clear career track from the outset of their time in state government. It also encourages employees to seek training for additional skills and certification by establishing skills-based - rather than degree-based - career tracks.

The pay plan overhaul process began over the summer, when the state received recommendations from its contracted consultant, McKinsey. Using those recommendations, the Office of Personnel Management (OPM) collected labor market data to devise new job titles and bring employees up to private sector pay.

The updated pay plan will be included in the Governor's balanced budget, which will be presented in full later this month. The total cost will be just over $102 million with nearly $60 million coming from General Revenue and the rest coming from other sources. Much of this cost will be absorbed by existing funding, due to salary savings and existing vacancies.

This new pay plan is part of the Governor's broader Arkansas Forward initiative, which seeks to improve efficiency in state government while delivering a better quality of service to the people of Arkansas. If passed, it would go into effect in July of 2025.