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Hardeeville council debates timing of pay‑study increases after consultants recommend baseline raises
Summary
A market compensation study recommended resetting Hardeeville's pay baselines (targeting the 51st percentile) and addressing compression; staff reported an $818,444 baseline payroll change, an annualized fully loaded cost of about $1.04 million, and proposed a $280,000 FY26 partial‑year budget amendment. Councilors preferred waiting for the April budget to adopt changes; staff will include recommendations in the manager's budget proposal.
Consultants from the Management Advisory Group (MAG) presented a market pay study at the City of Hardeeville’s Feb. 24 workshop that recommended adopting a formal compensation philosophy and separate pay plans for public safety and non‑public‑safety staff to address pay compression.
Don Long of the Management Advisory Group told councilors the firm benchmarked Hardeeville positions against a broad regional sample, including Buford, Charleston, Hilton Head, Bluffton, Moncks Corner, Savannah and others, to ensure competitiveness in nearby hiring markets.
Pam summarized MAG’s concrete recommendation: for roughly 170 employees the firm recommended bringing pay to the newly proposed entry‑level minimums, which staff described in presentation material as roughly a generalized 3.5% adjustment for many affected roles to reach the new baseline.
Finance staff outlined the cost implications. The presentation cited an $818,444 base payroll change to implement MAG’s immediate adjustments, which, when fully loaded with employer FICA and retirement contributions, was presented as roughly $1.04 million in annualized personnel cost. To implement changes for the remainder of fiscal 2026 staff proposed a mid‑year budget amendment for seven payrolls (April through the pay period including June 30) of about $280,000.
John Bole, speaking for finance, said the $818,444 is the payroll base change and the fully loaded annual cost is in the low‑million range; the specific numbers were repeatedly discussed during the workshop as staff walked council through how the mid‑year amendment figure was derived.
Council members questioned whether the adjustment should be implemented immediately with a budget amendment or delayed until the next budget cycle so the pay changes could be evaluated alongside capital and departmental budget needs. Several council members preferred delaying the mid‑year amendment and asked staff to incorporate MAG’s recommendations into the manager’s April budget proposal for full council review rather than pursuing a March ordinance and amendment. One councilor cautioned that delaying risks difficulty making up baseline shortfalls later, while others noted the city’s recent recurring revenue increases and said implementation might be affordable.
The manager’s office said it will include the compensation recommendations in the April budget packet and that staff will continue surveying peer jurisdictions and the state budget context to determine annual cost‑of‑living adjustments and potential merit pay on top of baseline changes. No formal mid‑year budget amendment was introduced at the workshop.
Staff next steps are to include the MAG recommendations in the manager’s proposed FY27 budget and to provide council with talking points and clearer comparisons to peer jurisdictions before any final vote.
