Nebraska Governor Pete Ricketts announced this week that the state will implement a new pay for performance program for discretionary and classified rules positions at the start of 2018. Today’s announcement replaces automatic cost of living pay increases for discretionary and classified rules teammates with a new program which creates the opportunity for pay increases when agency officials meet job performance goals.
“Top organizations in business and government recognize their teammates for their performance,” said Governor Ricketts. “This new pay for performance plan will bring state agencies into alignment with private sector best practices and give leaders a new tool to recognize our teammates who are making state government more effective, efficient, and customer focused.”
Starting in January 2018, discretionary and classified rules employees will no longer receive a “cost of living pay increase.” Instead, employees who meet their goals will receive a “merit increase.” This merit increase will be based on goals those teammates set with leadership in their agency for their performance during the 2018 calendar year. Top performers may also be eligible to receive additional bonus increases. The pay for performance program is being implemented using existing dollars which have traditionally funded cost of living increases. The first opportunity for a performance-based pay increase based on the goals set will be January 1, 2019.
The change builds on the work Governor Ricketts has done to run government like a business. Over the past few years, Governor Ricketts has ordered the creation of job descriptions for top positions in state government, hired a Chief Human Resources Officer, developed goals and measurements for his agencies, trained state teammates in process improvement, and worked to eliminate hundreds of unnecessary positions.
For more information, see Governor Ricketts’ video announcing the plan.