During a recent budget hearing held by the Senate Finance Committee's Transportation and Regulatory Subcommittee, significant discussions emerged regarding funding requests from the South Carolina Department of Employment and Workforce (DEW). The meeting, which took place on March 12, 2025, highlighted the department's ongoing challenges in employee compensation and retention, as well as its reliance on federal grants.

The DEW presented a request for approximately $1.1 million in state funds to support a general salary increase for employees. This funding aims to cover a 5% salary increase that was previously granted but not fully funded by the state. The department emphasized that while federal grants are the primary source of its funding, they do not typically include provisions for salary increases, making it difficult to sustain competitive compensation for staff.

In addition to the salary increase, DEW officials expressed the need for an additional $770,000 to reward high-performing employees. Exit surveys indicated that compensation is a critical issue affecting employee retention, leading to increased turnover and associated costs. The proposed funding would specifically target employees who have demonstrated exceptional performance and made significant contributions to the agency's goals.

The meeting also touched on the Coordinating Council for Workforce Development, which has been working to address broader workforce issues in the state. This council, expanded under the statewide Workforce Education Act, aims to bring together various stakeholders to tackle significant challenges in workforce development.

Overall, the discussions at the budget hearing underscored the importance of adequate funding for employee compensation in maintaining a skilled workforce within the DEW. As the state grapples with workforce retention issues, the outcomes of these funding requests will be crucial in shaping the department's ability to attract and retain talent in the coming years.