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HRMS: pay remains close to regional market but health insurance ranks top for employees
Summary
HR Management Services told the Employee Benefits Committee the state's comp ratio averages about 0.98, surveys show pay roughly 3–5% below relevant benchmarks, and recurring employee surveys list employer‑paid health insurance as the top benefit; HRMS recommended considering a third plan option and co‑designing a more detailed 2026 survey on health coverage trade‑offs.
Molly Harrington, chief people officer for the state, and Lynn Hart, HRMS total‑rewards manager, presented compensation and benefits comparisons to the Employee Benefits Committee, emphasizing pay positioning and employee priorities.
Lynn Hart explained comp ratio (salary versus the midpoint or market policy point) and said the overall comp ratio across classified staff is about 0.98. Using multiple survey sources, Hart told the committee the state appears roughly 14% below a national Mercer sample, about 5% below a North‑Central states Gallagher cut, and roughly 3–4% below some North Dakota‑specific benchmarks pulled from ERI and Job Service data.
Hart highlighted that targeted market equity adjustments approved in 2023 produced meaningful gains in targeted areas but did not resolve competitiveness in certain occupation groups such as attorneys, registered nurses, information technology and corrections staff. He noted that higher‑level and managerial positions typically show larger gaps against private‑sector benchmarks.
On benefits and leave, Hart said North Dakota was the only state in HRMS’ 10‑state comparison that offered employer‑paid family coverage at 100%, a “key differentiator” in recruitment. Hart also reviewed recent policy changes that became effective May 1, including enhanced annual leave for hard‑to‑fill positions and a new‑hire leave allotment of 40 hours for employees starting May 1 onward.
Molly Harrington said health insurance ranked highest in employee total‑rewards surveys (2022 and 2024) and urged caution before making significant plan changes. “I would caution this group to think carefully before making significant changes to that,” Harrington said, noting anecdotal requests from younger employees and those with young families for ACA‑compliant coverages such as certain therapies and preventive services.
Harrington recommended the committee consider offering a third plan option — an ACA‑compliant non‑grandfathered plan — so the state can measure employee response rather than moving the entire population at once. HRMS and PERS plan to co‑design the 2026 employee survey (scheduled for late July/early August) to include more detailed health‑insurance questions so policymakers can get clearer trade‑off information.
Next steps: HRMS will provide additional agency‑level data, a summary of which agencies use tuition reimbursement, and work with PERS to shape survey questions to inform possible plan changes.
