Man presenting a check

Summary of Gov. Herbert’s Employee Compensation Proposal

davidwicaiBlog, Legislature

As part of Governor Gary Herbert’s proposed budget, state employees will receive a solid pay increase while the state will cover the increases in health care costs. The following summary was provided by the Department of Human Resource Management.

2.5 percent labor market increase

  • Pay and position ranges increase
  • Supports employee salary increases consistent with projections of inflation
  • Average state salaries are currently 10.89% below market average
  • Maintains total compensation (value of wages and benefits) on par with market

0.5 percent targeted funding for most critical positions

  • Agency initiated requests
  • Actual salary was 20% or more below market average
  • Turnover higher than state average and getting worse year over year
  • Other factors included:
    • Length of advertised time
    • Low number of applicants
    • Number of offer declines
    • Exit survey information
    • Targeted increases for employees in these classifications becomes more important each year funding isn’t appropriated

1 percent bonus

  • Reward high performing state employees in a tight labor market No ongoing budget impact Performance measurement: Defined by using agency-specific metrics that demonstrate
  • high-performance for qualifying employees


  • State to cover 4.35% health insurance cost increase
  • #1 Reason employees join & stay in state employment is the value of health insurance (2018 Employee Value Proposition Survey). This is the state’s competitive advantage in the current tight labor market
  • Continued 401K match offering ($26 per pay period per employee)
  • $50 million one time contribution to Other Post Employment Benefit Plans (OPEB)
  • Liability Authorize PEHP cash conversion of 1⁄2 HSA annual contribution (SCR3)