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Review of Public Personnel Administration
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Market-Based Pay in Action

Municipal Strategies and Concerns in the Cities of Hampton Roads

William M. Leavitt

Old Dominion University, wleavitt{at}odu.edu

John C. Morris

Old Dominion University, jcmorris{at}odu.edu

The practice of linking the pay of public sector employees to the prevailing labor market, or market-based pay, has been a topic of conversation in many municipalities across the nation. Although much has been written about the use of this pay philosophy, little has been written about the use of market-based pay in local government settings. This article presents the results of in-depth interviews about the use of market-based pay with the human resource directors in the seven Hampton Roads, Virginia, cities. The authors find that although the idea of a market-based pay system is alluring, the difficulties of balancing internal and external equity, political considerations, and economic barriers make full implementation of such a system difficult at best.

Key Words: market-based pay • compensation • municipal government

This version was published on June 1, 2008

Review of Public Personnel Administration, Vol. 28, No. 2, 178-189 (2008)
DOI: 10.1177/0734371X07313816
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T. J. Davis and G. T. Gabris
Strategic Compensation: Utilizing Efficiency Wages in the Public Sector to Achieve Desirable Organizational Outcomes
Review of Public Personnel Administration, December 1, 2008; 28(4): 327 - 348.
[Abstract] [PDF]