LITTLE ROCK, Ark. (KAIT/Edited Press Release)—On Tuesday, Arkansas Governor Sarah Huckabee Sanders announced an overhaul of the state employee compensation plan that streamlines career paths, consolidates job titles and elevates remuneration of state employees at labor market rates.

“This wage plan is exactly the kind of transformative reform I promised when I ran for office,” Sanders said at a news conference. “We pushed the existing pay plan to the limit to rebuild a compensation system that rewards hard work and encourages Arkansans to apply for our hardest-to-fill positions. “I look forward to working with the legislature to pass this plan and implement these long-awaited reforms for our state employees.”

“I am very proud of the work the TSS team has done over many months to deliver a revamped salary plan promised by the Governor. The new salary plan will ensure our state employees receive competitive compensation for the incredible work they do for the state of Arkansas. This new payment plan allows us to be flexible and competitive in the market both now and in the future. 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 developing a new salary plan for state employees. This investment is much needed to recognize and retain our excellent state employees and attract qualified candidates. Creating career paths, increasing the ability to react to changes in labor market rates, and investing more in high-performing employees are much-needed innovations in state government. We look forward to working with members of the Arkansas General Assembly to ensure its passage,” said Arkansas State Employees Association Executive Director John Bridges.

“The Arkansas State Police Foundation appreciates the Governor’s initiative to increase trooper pay! In fact, competitive compensation is vital to attracting and retaining skilled soldiers. This investment increases morale among current police officers and strengthens public safety across Arkansas,” said Arkansas State Police Foundation Board Chair Elizabeth Anderson.

The proposed salary plan increases pay for 14,539 state employees, about two-thirds of the Cabinet agency workforce. The pay increases are intended to bring state employees up to comparable private labor market levels and are targeted at employment areas facing chronic shortages:

• Correctional officers – 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 – 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 – 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 – 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 salary plan revision consolidates approximately 2,200 current jobs into more than 800 proposed jobs that match their equivalent in the private workforce.

It also increases the number of employee salary tables to six: law enforcement and security, medicine, information systems and technology, state general services, professional and executive. These additional tables will ensure Arkansas remains competitive in staffing areas facing chronic shortages.

By simplifying agency structures, the salary plan provides state employees with a clear career path from the beginning of their tenure in state government. It also encourages employees to seek additional skills training and certification by establishing skills-based career paths rather than degree-based careers.

The payment plan review process began over the summer when the state received recommendations from its hired consultant, McKinsey. Using those recommendations, the Office of Personnel Management collected labor market data to design new job titles and bring employees closer to private sector salaries. The updated pay plan will be included in Governor Sanders’ balanced budget, which will be presented in full later this month.

The total cost will be just over $102 million, of which almost $60 million will come from General Revenue and the rest from other sources. Much of the cost will be absorbed by existing funding due to salary savings and existing vacancies.

The new pay plan is part of Governor Sanders’ broader Arkansas Forward initiative, which seeks to improve efficiency in state government while providing a better quality of service to the people of Arkansas. If approved, it would come into force in July 2025.

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