SD12 - Study of Whether Salary Differentials Should Be Instituted in the City of Fredericksburg and the Counties of Stafford and Spotsylvania

  • Published: 1991
  • Author: Secretary of Administration
  • Enabling Authority: Senate Joint Resolution 38 (Regular Session, 1990)

Executive Summary:
Senate Joint Resolution No. 38 requested the Secretary of Administration to determine whether salary differentials should be instituted in the City of Fredericksburg and the Counties of Stafford and Spotsylvania. This report examines the salaries paid by the local governments and private firms in those areas.

Currently, salary differentials are paid to employees in the northern Virginia area, which includes the counties of Loudoun, Prince William, Arlington, and Fairfax, and the cities of Fairfax, Falls Church, Alexandria, Manassas, and Manassas Park. The northern Virginia salary differential was established during World War II, when defense efforts created a competitive disadvantage to the state that could only be met by paying higher wages. The competitive necessity for the differential has continued, to the present, as a result of various economic conditions in the area. The differential has been expanded gradually over the years to include more job classes and geographical areas, due to competitive necessity. Northern Virginia salaries are reviewed annually and the differential is adjusted to comport with changes in competitive conditions.

The salary and turnover data gathered in the study indicate that, currently, there is no justification for extending the northern Virginia salary differential area to the City of Fredericksburg and the Counties of Stafford and Spotsylvania. Some classes have a high negative salary deviation, but the majority of classes either have a positive salary deviation or a negative deviation of less than two salary steps (4.56%) on the Commonwealth salary structure. Turnover data indicates that, while certain classes are experiencing high turnover in the Fredericksburg area, overall turnover is below the statewide average.

In order for the northern Virginia salary differential area to be expanded to the Fredericksburg area, there should be compelling evidence that, for most survey classes, the Commonwealth's salaries are below salaries paid by local governments and private firms in the area. Also, the rate of turnover should be relatively high for these job classes.

For isolated job classes with high salary deviations and turnover, salary differentials specific to each such class can be established to address staffing problems without applying differentials to the salaries of all employees in the area. State agencies experiencing staffing problems with specific job classes in this area may submit requests to the Department of Personnel and Training for the establishment of salary differentials.