Acceptable turnover rates need to be determined within classifications, within agencies or within locations. These rates can be affected by many factors and need to be documented. Charts showing turnover and workforce age trends are included in the appendix of this report. Longevity Currently the State pays a longevity bonus to career employees with more than 10 years of service. As this is a in service” benefit with no basis in market or performance, the practice could be reevaluated “time in concert with market-based changes going forward. About 41% of employees subject to the State Human Resources Act are currently eligible for longevity bonuses at a cost of nearly $48 million per year. North Carolina pays the average State employee a $1,392 longevity bonus. This is based on a graduated percentage-based schedule starting at 1.50% of annual salary for 10 years of service and increasing every five years to 4.5% for 25 years of service. Table 6 shows that N.C.’s longevity bonus program is extremely generous compared to other Southeastern states. Table 6: A Comparison of Longevity Pay Practices Among Southeastern States Starting Minimum # Years to Formula for Increase Maximum Longevity Qualify for Longevity in Longevity Amount Amount Alabama 5 $600 Time-based, set lump $1,000 sums Arkansas 10 $600 Time-based, set lump $900 sums Georgia No response Kentucky No response Louisiana No statewide longevity program but agencies may implement Mississippi No response North 10 1.5% of Time-based, No Maximum Carolina annual increased percentage (4.5% of annual salary of base pay salary) South No response Carolina Tennessee 3 $300 set lump $3,000 sums ($100 per year of service) Virginia No response West 3 $180 Time-based, set lump No Maximum (likely Virginia sums ($60 per year of tops out around service) $1,800 for 30 years of service based on formula) Source: 2016 NCASG Survey
Acceptable turnover rates need to be determined within classifications, within agencies or within locations. These rates can be affected by many factors and need to be documented. Charts showing turnover and workforce age trends are included in the appendix of this report. Longevity Currently the State pays a longevity bonus to career employees with more than 10 years of service. As this is a “time in service” benefit with no basis in market or performance, the practice could be reevaluated in concert with market-based changes going forward. About 41% of employees subject to the State Human Resources Act are currently eligible for longevity bonuses at a cost of nearly $48 million per year. North Carolina pays the average State employee a $1,392 longevity bonus. This is based on a graduated percentage-based schedule starting at 1.50% of annual salary for 10 years of service and increasing every five years to 4.5% for 25 years of service. Table 6 shows that N.C.’s longevity bonus program is extremely generous compared to other Southeastern states. Table 6: A Comparison of Longevity Pay Practices Among Southeastern States Minimum # Years to Qualify for Longevity Starting Longevity Amount Formula for Increase in Maximum Longevity Amount Alabama 5 $600 Time-based, set lump sums $1,000 Arkansas 10 $600 Time-based, set lump sums $900 Georgia No response Kentucky No response Louisiana No statewide longevity program but agencies may implement Mississippi No response North Carolina 10 1.5% of annual salary Time-based, increased percentage of base pay No Maximum (4.5% of annual salary) South Carolina No response Tennessee 3 $300 set lump sums ($100 per year of service) $3,000 Virginia No response West Virginia 3 $180 Time-based, set lump sums ($60 per year of service) No Maximum (likely tops out around $1,800 for 30 years of service based on formula) Source: 2016 NCASG Survey
2018%20Comp%20and%20Benefits%20Report_OSHR_0501.docx