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Manager proposes two‑tier COLA/merit system, electronic timekeeping and broker change; board schedules May vote

April 19, 2025 | Nash County, North Carolina


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Manager proposes two‑tier COLA/merit system, electronic timekeeping and broker change; board schedules May vote
County leadership presented a package of employee compensation proposals and benefits procurement recommendations at the April 16 work session.

Human Resources Director Tim Kerrigan and County Manager Stacy Shatzer proposed a two‑tier approach to FY26 salary adjustments: (1) a cost‑of‑living adjustment pegged to the Social Security COLA (2.5% for 2025), effective in July for all employees; and (2) a smaller, blended merit pool (roughly 2% of payroll in staff modeling) to be allocated based on performance reviews, with higher awards for employees who "exceed expectations" and corrective performance plans for those who fall short. Law‑enforcement sworn personnel were discussed as a separate pay consideration.

Kerrigan proposed a three‑year rotating salary study cycle to reduce year‑to‑year volatility and a move to biweekly payroll and electronic timekeeping (self‑service portal, geofencing and supervisor approvals). Staff outlined a migration timeline with an initial lead period and offered an 80‑hour bridge option (advance of accrued leave or paid in lieu) to smooth the payroll timing gap during implementation.

On employee benefits procurement, staff conducted a competitive solicitation for an ancillary‑benefits broker (dental, vision, disability, accident, voluntary benefits). After reference checks and interviews staff recommended Gallagher as the broker; the board voted (motion by Commissioner Leroy Davis, second by Commissioner George Howell) to proceed with Gallagher as recommended and to notify the current broker consistent with contract timing.

Commissioners asked for more modeling on multi‑year impacts of compensation changes and asked staff to provide details on how the COLA/merit blend will affect future budgets. Manager Shatzer asked commissioners to provide preferences on how board members and other elected/appointed boards should be paid under a biweekly schedule so staff can include those options in the May agenda when the formal pay schedule is presented for adoption.

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