Governor Pence's predecessor, Mitch Daniels, authorized the pay for performance increase last December to recognize the work of state employees throughout last year. Pence plans to continue to award pay raises based on employee performance.
"The state of Indiana has one of the most talented, skilled and effective workforces in the nation," said Governor Pence. "It's important to reward those who do a top-level job to help make Indiana a better place to live."
State employees who receive a positive performance review will receive pay raises according to this schedule:
- Employees who are evaluated as outstanding will receive an 8 percent increase. Approximately 5 percent of employees are expected to be in this category.
- Employees who exceed expectations will earn a 5 percent raise. This is approximately 10 percent state employees.
- Employees who meet expectations will receive a 3 percent raise. This is approximately 75 percent of employees.
- Employees who do not meet expectations or need improvement will receive no increase. This is approximately 10 percent of employees.
About 26,000 state employees are eligible for the pay for performance increase based on their hire dates.
The state will spend an additional $38 million for the pay increases. The overall average increase is 3.1 percent. The state's pay for performance model has been in place since 2006.