Data and Methodology - 2023 Total Compensation Survey

​CalHR followed the federal government’s Coding Guidelines^[1], which is summarized below:

• A classification should be assigned to an SOC occupation code based on work performed.
• Classifications performing activities not described in any distinct detailed occupation in the SOC structure should be coded in an appropriate ‘‘All Other’’ occupation.
• Licensed and non-licensed workers performing the same work should be coded together in the same detailed occupation, except where specified otherwise in the SOC definition.​

Benchmark Selections

This report covers three hundred and sixty-two (362) rank-and-file and related excluded classifications from nine (9) collective bargaining units (BU 2, 7, 9, 10, 12, 13, 16, 18, and 19); which are mapped to thirty (30) benchmark occupations categorized by SOC code.

All classifications mapped to the same benchmark occupation are compared, as a group, to the wage and benefit data for the corresponding occupation. These comparisons include classifications from entry-level through journey-level, and in many occupations, related supervisors.

Benchmark Selection Cr​iteria

The benchmark occupations used in this report were selected using the following criteria:

• State classifications have duties consistent with SOC definitions;
  
• State classifications represent a significant portion of bargaining unit; and
  
• Benchmark occupations have consistent wage and benefit data for a meaningful comparison.​​​​

​

Data and Method​ology

Total Compensation = W​​ages + Benefits

When the value of employee benefits is added to wages, it has a significant impact on the monthly total compensation costs for state employees. Using the same methodology for combining labor market data, CalHR added the value of state employee benefits to the state wage to find the total compensation for state workers. For more details, please read Methodology for Combining Benefit Percentag​es and Wages.​​

State Employe​e Wages

CalHR received wage data for state employees from the SCO. This report compares the monthly median wage for full-time workers as of March 2023. The median is the number in the middle of a group. For example, if there are five wages listed in descending order, then the third salary would be the median wage.

To find the state median wage, all salaries paid to state workers, rank-and-file and related excluded, associated with the same bargaining unit and mapped to the same occupation were collected. The average “wage-related” pay differentials paid to state workers in the occupation were then added to the base salary for each state employee to calculate the wage per employee.​​​

Calculating State Employee Benefit Perce​ntages

​​To calculate the percentage of benefits to wages for state workers, CalHR closely followed the methodology used for the NCS.

According to the NCS, the employer cost of benefits includes five major categories: Paid Leave, Supplemental Pay, Insurance, Retirement and Savings, and Legally Required Benefits.​

The state’s costs were collected from data provided by SCO for each bargaining unit separately, and then divided by the count of full-time employees to find an average annual benefit cost per employee. The average annual benefit cost was then divided by the average annual wage for that bargaining unit to find a “benefit percentage.”

​B​​enefit Percentage = Average Annual Benefit cost / Average Annual Wage

​Average Annual Wages: The average base pay for each bargaining unit was collected. An average of the qualifying pay differentials was calculated, and then added to the average base pay to compute the average wage for each bargaining unit.

Paid Leave: To find the employer’s cost for paid leave, all vacation/annual leave, holidays, and professional development days accrued are totaled. All sick leave used is then added to the total. This number is then multiplied by an hourly rate for paid leave.

Supplemental Pay: This includes the employer’s costs for overtime pay, shift differentials (for example, holiday shifts, weekend shifts, non-regular shift pay differentials), and the remainder of premium pays that are not included in the wage. This also includes the following Non-Production Bonuses:​

Insurance: This includes the employer contribution for life insurance, health insurance or consolidated benefits (CoBen), dental insurance, vision insurance, short-term disability insurance, long-term disability insurance, and administrative fees paid by the state for each plan.

Retirement and Savings: This includes the employer contribution towards retirement plans administered by the California Public Employees' Retirement System (CalPERS).

Legally Required Benefits: This includes the employer costs for Social Security, Medicare, state and federal unemployment insurance, and workers’ compensation.

It is important to note that some benefits, such as state’s contribution prefunding other post-employment (OPEB) benefits is not included in the calculation for total compensation. The OPEB is a long-term benefit provided to state employees and represents a significant employer cost to the state, therefore the OPEB data and cost comparison to local and federal government were produced and displayed in the 2023 Total Compensation Dashboards​​ for reference. For more details, please read the State Benefits Not Included in Total Compensation​.

Methodology for Combining Benefits Percentages ​and Wages

The Bureau and EDD have instructed CalHR how their data are collected and calculated, enabling CalHR to combine the OEWS and NCS surveys for benchmarking purposes.

To find the total compensation for a detailed occupation, the benefit percentages from the NCS (for local government and private sector) and from the OPM (for federal government) was combined with the wage data from the corresponding employer group in the OEWS survey.​

The table below summarizes how total compensation is calculated for a detailed occupation.

​​

Endnotes: