Gov. Mitch Daniels has authorized pay increases for most
state employees starting in February 2012, with the size of those raises based
on those workers' job performance ratings, he announced Wednesday.
"Our pay for performance system has become
the subject of interest all over the country, with many other states working to
replicate it," Daniels said.
"Outside government, workers are rewarded
based on the quality of their performance, and that produces better results. It
shouldn't be a surprise it works in government, too."
On average, state employees receive a 2.2
percent increase, with the highest pay raises going to
those with the best performance evaluations.
For an "outstanding" job performance,
which about one in each 20 state employees earns, those workers receive a 6
percent salary increase. Employees who "exceed expectations" –
about one in 10 – receive a 4 percent raise.
Those who "meet expectations" –
the biggest chunk, at about 75 percent of all state employees – receive a
2 percent pay bump. And those who fall short of expectations will see their
"No other state I'm aware of has a pay for
performance system, and the best employees in Indiana state government deserve
the 6 percent increase that they have earned by excellence in what they do,"
Daniels told reporters on Wednesday.
Daniels established a "pay for performance"
system in 2006, but the model went unused in 2009 and 2010 when the national
recession caused http://www.nuvo.net/indianapolis/Search?cx=010521573707257736118%3Asapivywasjc&cof=FORID%3A9&q=state+revenue&sa=Go to fall. According to Daniels, the money to
provide pay for performance "is all there."
"Our revenue forecast, as you know, was
strengthened in the most recent projection," Daniels said. "This is
our latest action."
The governor also re-instated a $15 bi-weekly
matching contribution to state employees for deferred compensation retirement
accounts. This match was suspended in 2010 as a cost-savings measure.
"I'm very proud of the productivity of this
state workforce," Daniels said.
above is one of an ongoing series of reports from the Statehouse File by
students at the Franklin College Pulliam School of Journalism.