Office of Administration announces completion of State of Missouri Compensation & Benefits Study

July 29, 2016

JEFFERSON CITY – The Office of Administration today announced the completion of the 2016 State of Missouri Compensation & Benefits Study. The final report includes a comprehensive compensation study for state employees including a review of current compensation practices, an update on the compensation plan, and a benefits analysis.

“State employees are hardworking public servants who have dedicated their careers to keeping Missouri a great place to live, work and raise a family,” Office of Administration Commissioner Doug Nelson said. “This study will help determine what can be done to help enhance Missouri’s ability to attract, retain and motivate qualified workers.”

Findings from the study include:

  • Base salary for the 37,906 employees included in the scope of the pay study is, on average, approximately 10.4 percent below market;
  • Total cash compensation (the sum of base salary and incentives, the latter of which the state does not provide) is, on average, 12.6 percent below market;
  • The benefits offered by the state are above market and improve the overall market position of the state; however, state employees remain 4.6 percent below market when totaling base salary, incentives and benefits;
  • The cost to adjust compensation to the threshold of market competitiveness is $13,690,388 as a result of 5,050 state employees being paid below that threshold;
  • Missouri ranks last among the 50 states in average employee pay; however, it should be noted that the state primarily competes for talent with Missouri private industry and local governments;
  • The state is not the only state to offer 10-year vesting for retirement; however the competitive labor market (and most states) offers a shorter vesting period. Data reports that the media years required to achieve full vesting is five years.

The full study is available in its entirety on the Office of Administration’s website. In accordance with the compensation & benefits study RFP, the Office of Administration and its Division of Personnel will work with the contractor to schedule the required presentations of the study in the coming months.