HR presents phased plan to raise pay, reduce turnover; council told increases must be staged

Human Resources presented turnover and compensation analysis to the council and proposed a phased approach to close market gaps and implement performance‑based pay.

HR found Nashville's pay levels lag several comparable towns on key positions and said the town recorded 12 full‑time or part‑time departures over the last 12 months. To address recruitment and retention, staff proposed a four‑phase roadmap: a near‑term cost‑of‑living adjustment (COLA) to preserve purchasing power (the presentation discussed ~3% as an example), a subsequent market alignment step to bring lagging positions closer to peer averages, targeted approval of critical new positions, and lastly deployment of a merit/pay‑for‑performance system once base compensation is aligned.

HR recommended staggered implementation because market alignment and merit systems require budget room, manager training and reliable performance appraisal processes. Council members asked for comparative data to nearby towns (Wake Forest, Zebulon, Butner were mentioned as comparators) and for cost estimates tied to specific COLA and market alignment scenarios.

Why it matters: municipal service levels depend on staff retention and competitive pay; HR framed phased increases as an investment to reduce recurring recruitment/training costs and maintain continuity of services.

Next steps: HR will deliver department‑level cost models for the proposed COLA and market adjustments and provide options for phased implementation timing tied to the FY27 budget process. No pay actions were approved during the session.