Annual Compensation Plans & Reports
The policy of the State of Colorado is to provide a competitive total compensation package to ensure that the State is able to recruit, reward and retain a qualified workforce. To support this policy, the State’s total compensation philosophy is to provide employees with pay increases that recognize employee performance and contributions, and group benefit plans that are competitive with prevailing market trends.
The Department of Personnel & Administration, Division of Human Resources is responsible for setting and maintaining the State of Colorado compensation plans and follows the annual compensation timeline below.
Annual Employee Compensation Cycle
- September 15: In accordance with C.R.S. 24-50-104(4), the State Personnel Director is required to submit an Annual Compensation Report for annual adjustments to the State of Colorado’s total compensation package. The Department of Personnel & Administration prepares these findings with data from private and public organizations to compare the total and component values and costs. In order to support the development of this report, the Department contracts with a third-party compensation consultant with actuarial experience every other year to perform the total compensation study.
- May: Following the legislative process, the State Personnel Director announces the final compensation plan for the upcoming fiscal year.
- July 1: Implementation of the Annual Compensation Plan occurs at the beginning of the fiscal year.
Annual Compensation Plans and Reports
Meet and Confer - FY 2019-20 Total Compensation Survey Process and Methodology
Each year, the Colorado Department of Personnel & Administration, Division of Human Resources (DHR) conducts a study to measure and compare the total compensation package offered to the State’s classified employees. This survey is conducted to ensure the total compensation package is competitive when compared to private industry and other government entities. Findings from the annual survey are used to develop recommendations for salary adjustments, medical, dental and basic life insurance plan premium contributions, and leave benefits. The survey results are submitted to the Governor to assist in developing his proposed budget.
Every other year, DHR contracts with a third-party compensation consultant, with actuarial experience, to perform the analysis. The consultant who performed the FY 2018-19 survey was Arthur J. Gallagher & Co. In partnership with DHR, Arthur J. Gallagher & Co., conducted an informational Meet and Confer session to explain the survey process and methodology used in the annual compensation analysis. Documents from the Meet and Confer are available below.