How to Set Compensation for Government Employees

This note discusses various challenges governments face when setting compensation for government employees.
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Volume/Issue: Volume 2024 Issue 003
Publication date: April 2024
ISBN: 9798400272653
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Topics covered in this book

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Labor , Economics- Macroeconomics , Taxation - General , Economics / General , government employment , compensation , performance-related compensation , salaries , allowances and benefits , government employee , government-private sector compensation premium , salary share , share of compensation , pay structure , Wages , Non-wage benefits , Public employment , Bonuses , Global

Summary

Government compensation-setting should be informed by the monitoring of trends in recruitment and retention and benchmarking against the private sector. Unduly high compensation is an inefficient use of resources, while insufficient compensation can hinder efforts to recruit, retain, and motivate the workforce needed to deliver adequate public services. Analyzing these factors at a granular level, for example, by occupation or position, can help to identify specific challenges.