Governor Daniels authorizes pay increase for state employees - 14 News, WFIE, Evansville, Henderson, Owensboro

Governor Daniels authorizes pay increase for state employees

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Posted by Brad Conaway - email
INDIANAPOLIS (AP) -

Governor Mitch Daniels approved pay increases for state employees that will be based on their most recent job performance. The raises will become effective in February 2013.

State employees who receive a positive performance review will receive pay raises according to this schedule:

  • Employees who are evaluated as outstanding will receive an 8 percent increase. Approximately 5 percent of employees are expected to be in this category.
  • Employees who exceed expectations will earn a 5 percent raise. This is approximately 10 percent of state employees.
  • Employees who meet expectations will receive a 3 percent raise. This is approximately 75 percent of employees.
  • Employees who do not meet expectations or need improvement will receive no increase. This is about 10 percent of employees.

About 26,000 state employees are eligible for the pay for performance increase (1,846 employees are not eligible because of their more recent hire dates).

The state will spend an additional $38 million for the pay increases. The overall average increase is 3.1 percent. The governor's pay for performance model has been in place since 2006.

Gov. Daniels sent this letter to employees: 

Dear fellow state employee,

It has been such a privilege to work with you over the last eight years. As I say everywhere I go, Hoosiers are served by the most effective and highest performing state workforce in the nation.

I plan to write you one more time before I leave office and will have much more to say then.  But for today, I wanted to share this important news with you. I am so pleased to authorize one final pay for performance increase, recognizing your work throughout this year. Our "outstanding" performers will receive an 8% raise, with 5% for "exceeds expectations" and 3% for "meets expectations." This continues our practice of rewarding our employees doing the best job serving our taxpayers, a one of a kind performance based system for state governments across the country. 

Thank you for your service and dedication to our great state. Happy holidays to you and your family!
Best regards,
Mitch