2016 State of Missouri Compensation & Benefits Study

Source: CBIZ Human Capital Services, July 29, 2016

CBIZ Human Capital Services (“CBIZ”) was engaged by the State of Missouri (“State”) to conduct a comprehensive compensation study for its employees, including a review of current compensation practices, an update of the compensation plan, and a benefits analysis.

In order to assist the State in implementing a compensation system that considers both market and internal factors, CBIZ matched the State’s positions to positions in the market, developed a new salary structure, and calculated the cost of implementing the recommendations. In addition to evaluating base salaries at the State, CBIZ assessed total cash compensation and competitive benefits levels.

As a part of this process, the employee data reflects the 2% general structure adjustment that took effect on July 1, 2016.

This report details CBIZ’s findings and recommendations, the summary of which indicates that the State’s current compensation practices are, in the aggregate, below market-competitive levels as evidenced by the following:

• Base salary is, on average, 10.4% below the recommended salary range midpoints, which approximates the published survey data market median. (See Exhibit 5A for additional detail.)
• Total cash compensation (the sum of base salary and incentives, the latter of which the State does not provide) is, on average, 12.6% below market. (See Exhibit 8 for additional detail.)
• The benefits offered by the State are 19.7% above market and improve the overall market position of the State. However, State employees remain 4.6% below market when totaling base salary, incentives, and benefits. (See Exhibit 8 for additional detail.)
• The cost to adjust compensation to the threshold of market competitiveness, identified as the minimum of the proposed pay ranges, is $13,690,388 as the result of 5,050 State employees being paid below the proposed pay range minimums. (See Exhibit 5A for additional detail.)
• Missouri ranks last among the 50 states in average employee pay. (See Exhibit 10 for additional detail.)

For reasons detailed later in this report, this analysis has limited utility. CBIZ focused on the broader market for most of the analysis.

The remainder of this report will explain the methodology and expand on this summary in order to clearly document the comprehensive approach taken to analyze the State’s current compensation practices and develop its new compensation plan.
Exhibits 1A-10
Exhibit 11