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Study finds Shelby County pay below market; consultants present three cost paths to raise minimums
Summary
A Siegel compensation study presented to the Budget & Finance subcommittee found pay ranges below market (min at ~84%) and proposed a new 26‑grade salary structure with a $40,502 minimum. Implementation scenarios range from ~$6.8M to ~$20.5M of annual payroll impact.
County human‑resources consultants presented a market compensation study and a proposed salary structure intended to make Shelby County competitive in recruiting and retention. The report found pay‑range minimums at about 84% of market and proposed a minimum base grade of $40,502.
"The Shelby County salary structure is below market," a Siegel vice president told commissioners, and the firm proposed a 26‑grade structure with a $40,502 floor to address compression and internal equity. The study offered three implementation approaches: raising incumbents to the new minimum (estimated payroll increase ~2.4%, roughly $6.8M), setting target salaries based on tenure (about $18.9M, ~6.66%), or placing employees against full comparator midpoints (about $20.5M, ~7.23%).
Commissioners pressed how those scenarios align with the mayor's FY26 proposal and whether benefits comparisons were included; the consultants said benefits data exist in separate documents and recommended the committee focus first on the salary structure. Staff agreed to provide a narrative tying the study findings to the mayor's certified rate and proposed FY26 budget line items.
