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Compensation and Classification

SPO’s Compensation and Classification unit is responsible for the design and development of the classified service pay system and providing consultation, analysis, and technical support on compensation issues. This includes:

  • Advising managers and employees regarding the New Mexico classified service system’s classification and compensation, policies, rules and structure.
  • Develop and report on human resource system metrics.
  • Maintaining updates on federal and state labor law changes and updates and assisting agencies in maintaining compliance.
  • Coordinating the State Personnel Office Quarterly Workforce Reports, Strategic Plan, Annual Report and the Annual Compensation Report.
  • Serving as the Liaison between the State Personnel Office and the SHARE technical team.
  • Serving as the system and security administrator for the recruitment system by SHARE.

What is classification?

“Classification” means a job that is occupationally and quantifiably distinct.

The process of classification relates to both jobs and employees in the classified service. In the classified service, team members perform job audits to identify work performed by state employees, develop occupationally based job descriptions to be used to describe this work, allocate positions to the appropriate job classification description, and ensure that employees are properly classified based on position allocations.

Responsibilities of the Compensation and Classification unit also include maintaining a position management system to identify all classified positions established in the executive branch of state government and reviewing agency personnel actions to ensure compliance with the Personnel Act and the State Personnel Board rules.

What is compensation?

The Compensation and Classification unit administers a variety of compensation administration policies and programs for state government. Compensation comprises the elements of pay that the State offers an employee in return for his or her services. This consists of both “direct” and “indirect” compensation. Direct compensation consists of base pay that includes wages and salaries, overtime, pay differentials and/or various multiple components of pay. The many mechanisms of direct pay are defined and administered under the provisions of 1.7.4 NMAC – Pay. Indirect compensation is further discussed below under “Total Compensation”.

What is total compensation?

Total Compensation simply means all forms of cash compensation and the dollar value of employer sponsored benefits. Total compensation can be further be defined as “the complete rewards/recognition package for employees, including all forms of money, benefits, perquisites, services and in-kind payments. The State of New Mexico provides a competitive employee benefit package that includes: employer paid medical contributions, pension (PERA retirement) contributions, paid leave allowances for vacation days, sick days and paid holidays. Additionally, state employees can take advantage of a Section 457 Deferred Compensation Plan that allows for contributions to a tax-deferred savings program that can be used to supplement their retirement plan.

Read more about Total Compensation here.

What is NM SPO's compensation philosophy?

The Compensation System (salary and benefits) for classified state government employees will be structured to support the mission of State Government and be consistent with State statutes to provide a high level of responsive service in meeting the needs of its citizens. The foundation of this structure is to reward employees for their specific contributions to the achievement of organizational goals and objectives. Fiscal responsibility requires that this approach be administered in a consistent manner through the State’s classified service based on its financial capabilities.

What is a job evaluation?

A job evaluation is the formal systematic process to identify the relative worth of jobs within the classified service. A major responsibility of the Compensation and Classification unit is the consistent administration of the job evaluation process.

The Compensation and Classification unit facilitates the Job Evaluation Committee, which consists of 10 state employees trained in using the Hay Guide -Chart Profile Method of Job Evaluation system.   Evaluations are based on the degree to which jobs reflect know-how, problem solving, and accountability factors. Based on the results of these evaluations, jobs are assigned to the appropriate pay band in the classified salary structure.

How does NM SPO conduct market analysis?

Market Pricing is the process of collecting external salary data to identify the rate of direct pay and/or total compensation on similar benchmark jobs from other employers in a relevant comparator market.

The State Personnel Office uses a regional comparator market comprised of the eight surrounding states; Arizona, Colorado, Kansas, Nevada, Oklahoma, Texas, Utah and Wyoming.  This comparator market was selected based on the following rationale:

  • Considers local, regional and/or national labor supply and demand market factors
  • Similar jobs, agency functions and funding sources
  • Specific focus on supply and demand of various occupations
  • Comparability to State Government’s pay and benefits
  • Mix of low and high paying states
  • Each state government must compete with its own private sector employers

The primary source of salary and benefit data comes from the National Compensation Association of State Governments (NCASG).  The State Personnel Office also supplements this data with both public and private in-state and regional data to ensure it has the adequate data available to assist in market pricing decisions.

The State Personnel Office uses external salary market data in determining its pay band structure as well as making recommendations on Alternative Pay Band assignments for specific job classifications.