‘Wage compression’ plagues Idaho’s state agencies…

Idaho’s state agencies have been suffering from “wage compression,” Jani Revier, Gov. Butch Otter’s budget director, told lawmakers on the joint Change in Employee Compensation Committee this afternoon; you can listen live here . “Employees have not been progressing through the pay grade, and this has led to little difference between salaries for new employees and long-term employees.”

The panel is meeting from 2-5 p.m. today ; first, it’s hearing a presentation from Revier on the governor’s recommendation; then it’ll consider other issues related to state worker pay and benefits and state appropriations. The committee also is scheduled to meet again on Friday at 1:30.

Revier said the wage-compression problem is part of the reason Otter is proposing a 3 percent merit-based pay increase for state workers next year. “Recruitment and retention remains a top concern of every director,” Revier said. As the economy recovers, they’re having to pay more to attract new employees, she said, which in turn brings them closer in pay to longer-term employees. “It’s a vicious cycle.”