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.