City Council reviews $26M workforce investment and salary adjustment strategies

The Raleigh City Council held a budget work session on March 10, 2025, focusing on employee compensation and strategies for the upcoming fiscal year. The meeting highlighted significant investments made in the workforce during fiscal year 2025, totaling over $26.6 million. This included market adjustments and annual pay increases for public safety and other employees, as well as new incentives aimed at enhancing employee retention.

Council members discussed the findings of a recent compensation study, which revealed that the city's salary structures are below market averages. Specifically, the minimum salary ranges are approximately 14% below market, with midpoints and maximums trailing by 9% and 7%, respectively. As a result, the council is considering adjustments to bring salaries in line with market standards. A 1% increase in salaries would cost around $3.75 million, while a 5% increase would require approximately $18.75 million.

Looking ahead, the council plans to review recommendations from the compensation study in April and May, with the aim of implementing necessary changes to the salary structures. The discussion also touched on the city's efforts to reduce vacancy rates, which have improved from 14.9% in March 2022 to 10.7% currently. However, officials noted that no long-term vacancies have been permanently eliminated yet, as this process is still underway.

The meeting concluded with a commitment to conduct more frequent salary studies to avoid significant funding gaps in the future. This proactive approach aims to ensure that the city remains competitive in attracting and retaining talent while addressing the financial implications of necessary salary adjustments. The council is set to reconvene in April to further discuss the findings and recommendations from the compensation study.