Survey Data Show 2010 More Difficult for Public Sector than 2009

Media Contact
Tina Ott Chiappetta
Senior Director of Government Affairs
and Communications
IPMA-HR
1617 Duke Street
Alexandria, VA 22314
Ph: (703) 549-7100, ext. 244
Fax: (703) 684-0948
Web: http://www.ipma-hr.org
E-mail: tchiappetta@ipma-hr.org

FOR IMMEDIATE RELEASE: April 9, 2010

The International Public Management Association for Human Resources (IPMA-HR) IPMA-HR and Fox Lawson & Associates, a division of Gallagher Benefit Services, recently conducted an online survey of IPMA-HR members concerning their pay administration actions for 2009 and plans and actions for 2010. Data was collected from 307 organizations across the country between February 24 and March 10, 2010. Cities, local municipalities and towns reported the majority of the data (59.6 percent). The percentage of data represented by the type of public sector organization category is as follows:

Overall, employee increase budgets reported by all organizations averaged fewer than two percent for 2009 for all employee types with the exception of the employee increase budgets for public safety employees at 2.08 percent. For 2010, employee increase budgets were forecasted by organizations at less than one percent with the exception of the public safety (1.2 percent) and non-exempt, union (1.07 percent) employee categories.

“What I think we are seeing here, is that even though pay raises are at their lowest level in our 30 years of experience, still, some organizations are able to reduce expenses in order to provide some pay increases to their employees,” explained Jim Fox, managing director, Fox Lawson & Associates.

Pay structure (i.e., salary ranges) adjustments for 2009 were made, on average, at a rate of less than 1.0 percent with the exception of the public safety (1.33 percent) and non-exempt, union (1.02 percent) employee categories. In 2010, planned pay structure adjustments were projected less than one percent for all employee groups by responding organizations.

IPMA-HR members have taken a number of actions to respond to the difficult economic conditions including restricting travel (65.8 percent), hiring freezes (62.2 percent), pay freezes (59.0 percent), restricting conference attendance (59.0 percent), restricting overtime (55.7 percent) and reducing training expenditures (55.7 percent). Layoffs of staff have been made by 32.9 percent of all organizations. Based on the survey data, these types of actions appear likely to continue into this year. Only 2.9 percent of responding organizations have made no changes due to economic conditions.

“The survey results point out the continuing economic challenges being faced by public sector organizations,” said IPMA-HR Executive Director Neil E. Reichenberg, CAE. “While there have been reports of an economic recovery, the survey results would indicate that the public sector may be lagging the rest of the economy.”

The detailed results of this survey can be found on the Web under surveys/studies. IPMA-HR and Fox Lawson will conduct short, online surveys regarding pay administration related topics throughout the remainder of 2010. If you have any questions regarding this survey, please contact Bruce Lawson, either by e-mail at blawson@foxlawson.com, or by phone at (602) 840-1070, or Jim Fox, either by e-mail at jfox@foxlawson.com, or by phone at (651) 635-0976.

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About IPMA-HR
IPMA-HR is a nonprofit membership organization dedicated to providing resources and advocacy for public human resource professionals at all levels. Comprised of four regions and more than 40 chapters, IPMA-HR represents more than 10,000 individuals and 1,300 agencies in local, state and federal levels of government worldwide. IPMA-HR provides a focus and forum for the discussion and exchange of views and best practices among public sector human resource professionals throughout the United States and abroad.