Sunset Beach staff propose STEP pay system to recruit and retain town employees

A town administrator meeting on April 11 heard a formal proposal to replace the town—s existing merit and holiday bonus practices with a STEP pay program that ties raises to documented skills, certifications and longevity.

HR Director Suzanne introduced the plan as a "pay for skill and knowledge" approach that creates clear career steps and reduces subjective merit allocations. She said department managers would define the concrete training and certification requirements tied to each step and that the program includes a longevity lump sum paid annually to employees at or near their salary caps.

Supporters argued the program addresses recruitment and retention challenges many municipalities face. Suzanne noted the program aligns steps to current salary grades to avoid salary compression and that departments such as police and fire have been working on detailed, department‑specific criteria. "A STEP program is actually pay for skill and knowledge," she said, emphasizing the proposal—s role‑based focus on objective benchmarks.

Council members asked how the town would add new certifications or adjust steps over time. Suzanne and staff said the STEP plan will remain a "living document": department heads will propose changes tied to evolving training requirements and those changes will be coordinated with HR and the town administrator before implementation.

Next steps: staff will finalize department‑level materials (police, fire, inspections were cited as priorities) and present refined budget numbers that incorporate the modest initial alignment costs. Council did not take final action at the workshop; further detail and cost reconciliation will be part of the next budget work session.