Cost of Implementing Hay Group Salary Recommendations Jumps by $5 Million


Guam – The cost of implementing the Hay Study recommendations on compensation for GovGuam employees has risen by nearly $5 million dollars.

Within the current budget signed into law by the Governor on Wednesday is an appropriation of  $13-point-1 million dollars to cover the Hay Group’s earlier recommendations for salary adjustments for GovGuam employees.

But at a news conference Thursday afternoon officials said that the revised cost for immplamentaion is now $18 million dollars.

A bill has been drafted by the Governor’s office and is on its way to the Legislature that asks for an additional appropriation to cover the increased cost of implementing the Groups recommendations.

Although incremental raises have been granted on an ad hoc basis to various agencies, an accross the board pay scale adjustment has not occured for GovGuam employees in 19 years.

At the news conference,  the Hay Group’s Vice-President Neville Kenning explained that the bulk of the increase … $4.9 million … is needed to correct inequities in their  initial recommendations. Kenning explained that the additional funds would help overcome situations that could occur when 2 GovGuam employees have the same job classification, but have different years of experience in that job.

Kenning cited as an example a case where a new hire brought in at the low end of a certain pay range might get a  $5-thousand dollar raise, while another employee with 10 years of experience at the top end of the same pay range might only get a few hundred dollar increase,  even though the 2  were doing the same job.

He said adjustments needed to be made to avoid that kind of  inequity.

Recommendations have now also been made to adjust the salaries of the Governor, Lt. Governor, Judges and the Attorney General. But these proposed increases account for about $116-thousand dollars of the proposed $5 million dollars in additional funds that are being requested.

The recommendation for those positions are:

Governor from $90-thousand now to $110-thousand

Lt. Governor from $85 thousand now to $100-thousand.

Guam Attorney General from $101 to $128-thousand.

Public Auditor from $100-thousand to $105 thousand.

Mayors from $46-thousand to $55-thousand

The recommendation for Judges is to give them another 4% salar increase in line with the 4% increases that they have been receiving over the past 4 years.

Speaker Judi Won Pat has called for a session next Tuesday at 2 pm. The Governor’s bill calling for the additional $5 million dollars may be taken up during the session.