Financial Management Division

The Financial Management Division provides crucial advice to CalHR management, the Department of Finance (DOF), and the Governor’s Office on the cost implications for all employee compensation issues. FMD produces four essential services prior to collective bargaining:

• Produces key benchmark and workforce statistics
• Compares state employee compensation with the labor market
• Evaluates departmental employee compensation requests
• And estimates the costs for all bargaining proposals

Compensation surveys provide some perspective of how the state’s compensation practices compare with other employers in the labor market. While the reports do not define the appropriate level of compensation for state employees, they are a valuable reference for workforce planning purposes and for collective bargaining. All compensation reports are mandated by government codes, provisions in the budget act, or specific Bargaining Unit Memoranda of Understanding.

Compensation surveys and key statistics dashboards are published on the CalHR website and shared with the State Legislature. The dashboards include additional information such as turnover, longevity, and vacancy rates to help evaluate the State of California’s ability to recruit and retain employees.