HRMS managers told the Employee Benefits Program Committee on Oct. 7 that North Dakota state government is carrying a demographic imbalance: a large share of long‑service workers and a relatively small share of employees aged 20–30. That imbalance, staff said, leaves the state vulnerable to retirements and knowledge loss if it does not build recruitment pipelines and improve early‑career retention.

“Timing is urgent,” said Molly Harrington, chief people officer for HRMS, citing low statewide unemployment (about 2.5% in August 2025) and a forecast that roughly 25% of the state’s workforce will be retirement‑eligible within five years. Harrington said the state’s workforce shows strong retention in the 20‑plus years category but a comparatively weak share in the 20–30 age band. HRMS said the highest turnover is among employees in the first year on the job and in the 20–30 age group.

HRMS cited a 2024 total‑rewards survey (63% response) showing employees rank fully paid health insurance at the top of valued benefits. Other top priorities included competitive pay, work‑life balance, flexible work arrangements and opportunities for advancement.

Lynn Hart, total‑rewards manager, reviewed classification and compensation history. He traced the state’s implementation of a Hay‑based point factor job evaluation system (2012), the 2020 classification simplification (reducing ~850 classifications into 100 titles and 10 grades), and the 2023 introduction of alternative salary ranges for select job families (IT, planning/engineering, trade services) to reflect distinct labor markets.

Hart described the 2023 targeted market equity program (approximately $82.5 million across state agencies and the university system) and said agencies administered awards locally within parameters established by HRMS; the program aimed to address hard‑to‑fill roles in corrections, probation, direct care, attorneys and medical positions. Agencies also operate recruitment, referral and retention bonus programs and a $1,500 cap on individual performance bonuses per fiscal year under statute.

HRMS staff told the committee they will conduct follow‑up work including workforce planning, an exit‑survey effort (task force planned before year‑end) and requests for more granular demographic breakdowns of engagement and total‑rewards survey results. Committee members asked HRMS to supply comparisons with private‑sector turnover and requested data on regrettable versus non‑regrettable separations to evaluate retention strategies.