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”.

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.

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.

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.

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.