How to Set Compensation for Government Employees

Author: Celine Thevenot and Mr. Sébastien Walker

This note discusses various challenges governments face when setting compensation for government employees.

Volume/Issue: Volume 2024 Issue 003

Publication date: April 2024

ISBN: 9798400272653

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Economics- Macroeconomics , Taxation - General , Economics / General , government employment , compensation , performance-related compensation , salaries , allowances and benefits , government employee , government-private sector compensation premium , salary share , share of compensation , pay structure , Wages , Non-wage benefits , Public employment , Bonuses , Global

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Summary

Government compensation-setting should be informed by the monitoring of trends in recruitment and retention and benchmarking against the private sector. Unduly high compensation is an inefficient use of resources, while insufficient compensation can hinder efforts to recruit, retain, and motivate the workforce needed to deliver adequate public services. Analyzing these factors at a granular level, for example, by occupation or position, can help to identify specific challenges.