Arkansas officials unveil comprehensive new labor market pay plan for state employees

The Arkansas Legislature convened on March 11, 2025, to discuss a significant overhaul of the state employee pay plan, aimed at aligning salaries with labor market rates. This meeting served as an informational session to address concerns raised by state employees regarding the proposed changes.

Senator Davis emphasized that the new pay plan is designed to target employees who have not been compensated at competitive rates, with approximately two-thirds of state employees expected to receive substantial raises. The plan aims to attract and retain skilled workers by ensuring that salaries are competitive with the private sector. Notably, the new structure will create defined career paths and job families, allowing for promotion and advancement opportunities.

Leslie Fiskin, Secretary of Transformation and Shared Services, reiterated the importance of the new pay plan, stating that it has been developed with input from various executive branch departments. The plan will benefit over 14,000 employees, particularly in critical areas such as law enforcement and healthcare, which have faced challenges in recruitment and retention.

Kaye Barnhill, also from the Department of Transformation and Shared Services, detailed the process that led to the new pay structure. The plan consolidates job titles from 2,250 to around 850, aiming for consistency and equity across state government. It introduces multiple pay tables to better reflect the diverse roles within state employment, including specialized positions like attorneys and engineers.

A key point of clarification was made regarding employee concerns about perceived downgrades in their positions. Officials stressed that the new pay plan is not a direct comparison to the previous system, and no employee will experience a reduction in pay or demotion. Instead, the plan is intended to elevate salaries to meet market standards.

In conclusion, the Arkansas Legislature's meeting highlighted a historic shift in the state's approach to employee compensation, with a focus on equity, career development, and competitive salaries. The proposed changes are expected to enhance job satisfaction and retention among state employees, marking a significant step forward in addressing long-standing pay disparities.