Greenville City Council approves 4% pay adjustment and 4% 401k contribution increase

In a pivotal joint meeting on April 14, 2025, the Greenville City Council and the Greenville Utilities Commission (GUC) approved a significant 4% pay adjustment for the upcoming fiscal year 2025-2026. This decision aims to enhance employee retention and recruitment by aligning compensation with market standards, as outlined in a comprehensive evaluation of pay structures.

During the meeting, staff presented data from various market surveys, revealing that the average wage increase across comparable organizations is projected at 3.8%. Notably, public sector organizations reported an average increase of 4.6%, while private employers indicated a 3.4% rise. The proposed 4% adjustment is seen as a necessary step to address previous years where GUC and the city lagged behind market trends.

Councilwoman Brown raised concerns about past pay discrepancies, specifically referencing a 2% increase in the previous fiscal year due to budget constraints. The council's unanimous approval of the 4% increase reflects a commitment to improving employee compensation and maintaining competitive pay practices.

Additionally, the council discussed a 2.5% adjustment to the salary structure, which will help ensure that pay ranges remain competitive. This adjustment is crucial for preventing wage compression, ensuring that new hires are compensated fairly relative to existing employees.

In another key decision, the council approved an increase in the employer contribution to 401(k) plans from 3% to 4% for full-time and select part-time employees, with plans to reach 5% in the following year. This move is expected to further enhance the city’s ability to attract and retain quality talent.

The meeting concluded with a strong consensus among council members, emphasizing the importance of these adjustments in fostering a supportive work environment for city and utility employees. The anticipated outcomes include improved employee satisfaction and a more competitive stance in the job market.