This report compares the compensation of employees in the Commonwealth’s classified workforce with those in private industry for calendar 2018. The Department of Human Resource Management (DHRM) will provide in this report a narrative and information designed to answer these key questions:

• How did the average salary increases and pay structure adjustments that private industry reported compare to statewide increases and adjustments provided to the Commonwealth’s classified workforce during 2018?

• How do the average salary increases that private industry is projecting compare to the statewide increases estimated for the Commonwealth’s classified workforce during 2019?

• Are there any particular economic conditions or labor market trends that impacted the private industry labor market during 2018 that may also impact the Commonwealth’s classified workforce?

• How do the average base salaries for a sample of equivalent roles in private industry compare with salaries in the Commonwealth’s classified workforce?

Private sector data for this year’s report was gathered from publicly available reports and projections for base salary increases from national compensation benchmarking organizations. DHRM indexed the average salaries of a sample of Virginia classified state employee roles with salaries paid by private sector employers for comparable roles at the national level using salary survey data compiled by the independent compensation consulting firm Willis Watson Towers.