Spotlight Report

Compensation Model Cannot Keep Good State Employees

posted on in Spending & Taxes

State government needs pay its employees differently if it wants to keep the best of them. The average state employee earns as much as the average employee nationally, but across-the-board pay raises fail to reward employees for performance. Employees who choose to work for the state are more risk averse and may stay despite a lack of productivity. But these employees merely substitute unseen political risk for visible market risk. The General Assembly should consider more pay for performance and portable benefits for state employees.

As Senior Fellow, Joe examines fiscal and tax policy. He previously headed the North Carolina Government Efficiency and Reform initiative within the Office of State Budget and Management, which led to changes in automotive fleet management, natural and… ...

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We are North Carolina’s Most Trusted and Influential Source of Common Sense. The John Locke Foundation was created in 1990 as an independent, nonprofit think tank that would work “for truth, for freedom, and for the future of North Carolina.” The Foundation is named for John Locke (1632-1704), an English philosopher whose writings inspired Thomas Jefferson and the other Founders.

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