Metro Council studies pay plan changes to enhance employee compensation and retention

Nashville's Metropolitan Council is set to implement significant changes to its employee compensation plans, aiming to enhance recruitment and retention efforts while ensuring fiscal responsibility. During a recent Budget and Finance Work Session, officials outlined a comprehensive overhaul of the city's pay structures, marking the first major update in nearly 30 years.

The proposed changes, developed in collaboration with Mercer HR Consulting, include increasing pay ranges across the board, adding more steps to the pay scale, and adjusting how merit increases are applied. Currently, employees progress through 10 steps; the new plan will expand this to 15 steps, allowing for greater pay growth potential. This adjustment is designed to align Nashville's compensation with market rates, making the city a more competitive employer.

Key highlights from the meeting included a commitment to maintaining a merit-based structure, where employees can receive annual increases based on performance. The plan also introduces across-the-board pay increases, ensuring that all employees benefit from the adjustments. For those at the lower end of the pay scale, increases could reach up to 9%, while those at the top may see increases closer to 3%.

The council emphasized the importance of these changes in light of rising living costs, particularly in relation to the consumer price index. By linking pay adjustments to market trends, the city aims to ensure that its compensation remains fair and equitable, ultimately supporting its goal of being an employer of choice in Nashville.

As the city prepares to implement these changes, officials are optimistic that the new compensation structure will not only attract new talent but also retain existing employees, thereby enhancing the overall quality of services provided to the Nashville community. The council will continue to monitor the impact of these changes and make adjustments as necessary to maintain competitiveness in the job market.