More state workers leaving than being hired

10% cut in turnover could save $12 million a year, study says

SANTA FE — More rank-and-file New Mexico state employees left their jobs than were hired by the state — 2,760 to 2,582 — for the third consecutive year last year, according to a new compensation report presented Thursday to a key legislative panel.

Many state agencies have faced high vacancy rates after several years of budget cuts — the statewide vacancy rate is currently 19 percent — and the high turnover rate has made that difficult to fix while also hurting employee morale, according to a report by the State Personnel Office.

“These morale issues can ultimately cause a domino effect of burnt out employees who are eager to find a job with less stress, and an in increased work and familylife balance,” the report says.

The report also says reducing the turnover rate by 10 percent could save the state more than $12 million a year in training and other costs.

Gov.-elect Michelle Lujan Grisham, who takes office Jan. 1., has touted the need for hiring more workers in some state agencies to improve operations, specifically the Children, Youth and Families Department.

There are currently 16,787 rank-and-file

state workers in more than 60 agencies, according to the report presented Thursday to the Legislative Finance Committee. That figure does not include appointees, who can be fired without cause and are not subject to the state’s classified employment system.

Although the average pay for rank-and-file state workers increased to $45,906 during the 2018 budget year after approval of a 2percent salary increase, that’s only about 9 percent higher than it was a decade ago. In addition, roughly 45 percent of such employees earn between $20,000 and $40,000 annually.

But state employees also get a generous benefit package, and their total average yearly compensation of $79,260 put New Mexico at the middle of the pack when compared with eight other Western states, according to the report.

Meanwhile, the combination of fewer state employees and more retirees has increased pressure on New Mexico’s Public Employees Retirement Association, top pension officials have said.

The State Personnel Office implemented a new online job application system in 2011 that allows job seekers to apply for multiple vacancies without having to create a new job application for each posting. The system has led to more job applications being received, but it has not necessarily increased the average time it takes to hire a new employee.

As for the reason workers left state government during the 2018 budget year, about 67 percent of the 2,760 departures were voluntary and 20 percent were due to retirements. Firings and layoffs accounted for the other departures.