Metro committee reviews Mercer pay-plan study, proposes FY26 pay-structure changes

Human Resources Director Shannon Hall told the Metro Council Budget & Finance Committee on Oct. 11 that the city is proposing a redesigned FY26 pay plan based on a Mercer compensation study that increases all pay ranges, expands step progression from 10 to 15 steps, and changes how employees are slotted when market adjustments are made. "Thanks for the opportunity to be here today and talk to you about the pay plan study that we had conducted with Mercer," Hall said.

The study and staff recommendations aim to improve recruitment and retention by moving many pay-range minimums higher, add steps so tenured employees have continued growth opportunities, and implement a new slotting method so employees keep the same step in a regraded range. Mercer consultant Leah Santos summarized a key communication point: "Market adjustments are a result of a detailed market assessment and should be communicated separately."

Why it matters: the redesign raises minimums and maximums across the classification structure so hiring is closer to market, and the city says every job covered by the plans will see higher pay under the proposal. Staff told the committee the average increase across the whole population covered by the plans is nearly 7% under the redesigned structure, with larger percentage increases for employees at the bottom of ranges and smaller increases for employees already near top steps.

What the proposal would change

- All pay ranges would be increased relative…