UPDATED / Latest information on market adjustments

TSEA June 28, 2016 Comments Off on UPDATED / Latest information on market adjustments
UPDATED / Latest information on market adjustments

(Updated 6/28/16)

In late May, TSEA had our quarterly meeting with the Tennessee Department of Human Resources. A majority of the meeting was spent discussing specifics regarding the upcoming market adjustments for state employees.

The market adjustments refer to salary increases many employees will receive in July. The intent is to move employees closer to the midpoint of their salary range. These adjustments do not address specific job classes, but instead address individual employees and where they are in their pay range.

Also, TSEA has learned that even employees on probation will be eligible to receive market adjustments.

DOHR has recently updated their market adjustment FAQ sheet which can be viewed by clicking here. We have included the full text of those Q&A’s below. This sheet answers a majority of the questions we asked DOHR, as well as questions we have heard from our members regarding the coming market adjustments.

In general, if you earn under $50,000 you are likely to see an adjustment to your salary. The department told TSEA, the increase will average 4.25 percent or to the maximum of your salary range.

If you earn less than $50,000 annually, you can approximate what you might receive by taking your current salary, and adding 4.25 percent.

(Originally, DOHR announced they would include longevity as part of the equation; however, in the last few weeks the department decided not to include longevity in the calculation. The department told TSEA that by not including longevity they can give an extra 700 employees a market adjustment. “Our goal was to give as many employees as possible the increase,” DOHR told TSEA.)

How to estimate your increase:

If you are an employee that earns $27,000 a year:

        $27,000 x .0425 (4.25%) = $1,147.50

Unless you’ve exceeded the maximum salary for your particular position, your approximate market adjustment will be: $1,147.50*

*Note: If this calculation causes you to exceed your position’s maximum salary, your market adjustment will be the amount that brings you to the maximum. Then, your new salary will be at the maximum amount.

For the complete list of salary ranges, click here. You will need to locate your job description in the left column. Then, locate your salary range by finding the corresponding amounts in the columns marked “Minimum Salary” and “Maximum Salary.”

NOTE: The salary figures listed in this chart are monthly amounts. To calculate annual salary, multiply the number by 12.

Full text of DOHR’s Market Adjustment FAQ’s from June

Market Adjustments – Frequently Asked Questions
(Updated June 2016)

Q: What is a market adjustment?
A: Market adjustments refer to salary increases employees may receive in July. The intention is to move
employees closer to the midpoint of salary range for his/her job classification, which is the market rate.

Q: Why is the state implementing market adjustments?
A: It is the goal to align state salaries with similar jobs in the market, both public and private sector. In order
to do so, the Department has conducted an in depth study of salaries and positions and is seeking to move
employees to the midpoint range. This lessens the difference in salary competitiveness and seeks to retain
and reward state employees.

Q: Who will benefit from the market adjustments?
A: Employees in the Executive Branch will be the recipients of market salary adjustments. The Executive
branch includes 23 Cabinet level agencies, and certain boards and Commissions. For example, Children’s
Services, Correction, DIDD, Human Services, etc. A complete list of these agencies can be found on

Q: Will all employees in the Executive Branch see a salary increase from the market adjustment?
A: No. The market increase this year was designed to impact employees who currently make under $50,000.

Q: Can you tell me exactly which employees will be affected by the market adjustments?
A: No. The market adjustment this year was designed to affect any employee earning less than $50,000.

Q: If I currently earn less than $50,000, will I receive an increase?
A: Likely, employees currently earning less than $50,000 will see an average increase of 4.25% or an increase
to the maximum of the classification range. You can view salary ranges on that plan:

Q: May employees receive both the pay for performance salary increase and a market increase?
A: If eligible, it is possible to receive both increases.

Q: What is the average increase for an employee with the market adjustment?
A: The average increase is 4.25%.

Q: How many employees will benefit from the market adjustment?
A: It is estimated that over 25,000 state employees will be eligible for market adjustments.

Q: When are the market adjustments effective?
A: They are effective on July 1, 2016, and employees will see the amount reflected on their July 29th paychecks.

Q: How will an employee know if he/she is eligible?
A: DOHR will release information to agency HROs in June and employees can check Edison in July for the

Q: When will the updated P4P guidelines and FAQs be released?
A: Both guidelines and FAQs will be released later this summer after the market adjustments take place.


State employees with further questions may contact the Compensation & Benefits department at TSEA: 800-251-8732.