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HRMS: pay comparisons show state generally below private market; employees rank health insurance top priority
Summary
HRMS presented comp‑ratio and wage comparisons showing North Dakota state pay close to but generally below private-market benchmarks and reported turnover down to about 11%; HRMS said health insurance ranked first in the 2024 and 2022 employee surveys and recommended careful consideration before changing family-paid employer coverage.
Molly Harrington, chief people officer for the state, and Lynn Hart, HRMS total rewards manager, briefed the panel on compensation and benefits comparisons and previewed the 2026 employee survey. Hart explained comp ratio methodology and said the overall comp ratio for classified staff was about 0.98; private‑market surveys showed the state roughly 4–14% below various national or regional benchmarks depending on the survey source.
Hart told the committee the 2024 Mercer and Gallagher survey slices and a fresh pull from the Economic Research Institute put state pay close to local market levels, while a national sample keeps the state further below large corporate benchmarks. "On average about 14% below that national market," Hart said of Mercer; ERI data showed "just slightly below market at 4%." He said the state participated in targeted market equity adjustments in 2023 that produced measurable improvements.
Harrington said state surveys show health insurance consistently ranks first in employees’ benefit priorities in both 2022 and 2024. "Health insurance came up on top," she said, and added the HRMS team has heard requests—particularly from younger employees and parents—for ACA‑compliant coverages such as broader preventive care and therapy coverage. Harrington recommended piloting an additional option rather than an immediate full transition away from the grandfathered plan, saying HRMS will co‑design the 2026 survey with PERS to collect more detailed health‑coverage preferences.
The presentation covered leave reforms that took effect May 1 (enhanced annual leave and a 40‑hour new‑hire leave) and noted variability in tuition‑reimbursement policies across agencies; HRMS said it would compile a list of agency practices for the committee. Committee members asked for further breakdowns on turnover types and salary comparisons by occupational group; HRMS offered to provide additional detail.
