Monthly Newsletter

March 2026

Industry Snapshot:

What We're Seeing in the Public Sector

Recent national data highlights ongoing compensation pressures across US state and local governments. Three themes continue to surface:

1. Compensation Costs Continue to Rise

According to the U.S. Bureau of Labor Statistics, compensation costs for state and local government workers increased 3.4% over the past 12 months, with wages up 3.3% and benefits up 3.5%. [Source]

Why this matters: Even moderate annual increases compound quickly across large workforces, making accurate forecasting essential during budget development.

How TrueComp Helps:
✔ Model multi-year wage and benefit impacts before they hit the budget
✔ Layer benefit cost changes into total compensation scenarios
✔ Run side-by-side proposals to understand long-term financial impact

2. Competitive Pay and Retention Remain a Priority

A StateScoop public sector workforce report found that while many agencies believe total compensation is competitive, fewer view base wages as competitive and more than half reported implementing broad-based pay increases to address recruitment and retention challenges. [Source]

Why this matters: Agencies are actively adjusting compensation structures, often under pressure to respond quickly to market gaps.

How TrueComp Helps:
✔ Benchmark roles against peer agencies by population, region, or revenue
✔ Identify market gaps at the job classification level
✔ Support defensible, data-backed compensation recommendations

3. Benchmarking and Equity Are Core Public Sector Practices

Compensation best-practice guidance for public sector organizations consistently emphasizes regular market benchmarking and structured compensation analysis to maintain competitiveness and internal equity within fiscal constraints. [Source]

Why this matters: Compensation decisions in government must be transparent, defensible, and aligned with peer markets.

How TrueComp Helps:
✔ Generate Market Summary Reports with defensible peer groups
✔ Export presentation-ready visuals and reports for council, board, or union discussions

Events & Webinars

March 1 - 4

NC PSHRA Annual Conference

March 19

RI League of Cities Annual Convention

March 19

TrueComp Learning Lab

March 31 - April 2

CASBO Con 26

April 14 - 17

OASBO Annual Conference & Expo

April 15

PSHRA SoCal Annual Conference

April 19 - 22

NPELRA Annual Conference

Quick Tip

3 Ways to Use Scenario Modeling
Before Negotiations

Many agencies wait until bargaining starts to run proposals. Instead, try this workflow:

• Model a flat % increase

• Adjust filters to target class adjustments

• Download Difference from Baseline Table to view associated trickle-down costs

Running these scenarios gives leadership clarity before public discussion begins.

Expert Perspective

"The agencies that feel the least pressure during negotiations are the ones who did the modeling work months earlier. When you already know your cost ranges, you don't react, you lead."  - TrueComp Labor Team

If you'd like a strategic walk-through tailored to your agency's environment, we're happy to schedule a focused session. Contact support@truecomp.com.

Compensation Trivia

According to the U.S. Bureau of Labor Statistics, by what percentage did compensation costs for state and local government workers increase over the past year?

A) 1.8%
B) 3.4%
C) 6.2%

(Answer revealed in this newsletter!)

We Want to Hear From You

What’s your biggest compensation challenge right now?

☐ Pay compression
☐ Market competitiveness
☐ Budget forecasting
☐ Union negotiations
☐ Internal equity adjustments
☐ Data reporting & presentation
☐ Something else (tell us!)

Click here to share your challenge.

We’ll use your feedback to shape upcoming Learning Labs and resources.

Need help or have questions? We're here for you!