Greenville approves across‑the‑board pay changes, boosts 401(k) contributions and orders comprehensive pay study

Greenville City Council and the Greenville Utilities Commission on April 14 approved a package of employee compensation changes designed to keep city and utility pay competitive, improve recruitment and retention, and fund a comprehensive pay study.

The joint meeting approved a 4% market-and-merit pay adjustment for fiscal year 2025–26, a 2.5% upward adjustment of pay-range structures, an increase in the employer 401(k) contribution from 3% to 4% effective in fiscal year 2025–26 with a planned move to 5% next year, and authorized a comprehensive classification and compensation study for implementation July 1, 2026.

City staff and GUC officials framed the package as a response to market data and recent recruitment and retention pressures. A staff presenter said survey sources produced an average projected wage increase of about 3.8% across published surveys and that a public-sector benchmark of organizations that responded showed an average actual increase of 4.6% for fiscal 2024–25. The presenter recommended the 4% adjustment and the 2.5% salary‑structure change to maintain market alignment.

Council members voted unanimously on each item. The roll call for the city showed six present and voting: Mayor Pro Tem Monica Daniels; Council members Foreman, Blackburn, Scully, Robinson and Willis. Votes on the merit adjustment, salary‑structure adjustment and 401(k) change were recorded as 6–0 in favor. The GUC board took mirror actions during the same meeting.

Councilwoman Blackburn moved the motion approving the 4% market-and-merit adjustment; Councilwoman Willis seconded. For the 401(k) change the motion was made by Councilwoman Blackburn and seconded by Councilman Robinson. Where specific movers or seconders were not verbally identified in the record, the motions were recorded as approved 6–0.

Staff said the 4% figure reflected a mix of market and merit elements, and the 2.5% range adjustment applies to pay-range minima and maxima (shifting ranges upward rather than directly raising every employee by that percent). According to staff, employees who are at the bottom of a range could receive both the organization-determined portion of the 4% and benefit from the range shift, depending on how each organization applies the increase.

On retirement benefits, staff told the boards the previous employer contribution had been a flat-dollar benefit ($40 per pay period) before the change last year to 3%. The board approved moving the employer match to 4% for full-time and selected part-time employees (excluding sworn law enforcement, which staff said receive 5% by North Carolina general statute), with a plan to increase to 5% in a later year so sworn and non‑sworn employees would have the same statutory percentage.

Council and GUC members also approved a comprehensive classification and compensation study to be completed and implemented beginning July 1, 2026. Staff said the city and utility will issue a request for qualifications (RFQ) for the work; estimated consultant costs vary, with staff calling a full study “not unheard of” at a couple hundred thousand dollars and noting a prior limited true‑up study cost about $100,000.

City staff confirmed the budget materials under discussion include the higher 401(k) contribution. Council members said the combined actions are intended to maintain competitiveness with peer public and private employers and to address hard‑to‑fill positions.

The boards approved the minutes from the Sept. 23, 2024 joint meeting and adopted the meeting agenda earlier in the session. Other routine items were taken up and approved during the joint meeting without recorded opposition.

The compensation package and the study now move to implementation steps by staff and the GUC organization; the councils and commissions asked that future reporting and implementation details be coordinated through their regular staff and board channels.