The governor's recently proposed pay increases would boost pay for the roughly 25 percent of state employees making minimum wage and establish new wages for more than a third of the total state workforce.
Those pay increases, agencies said, should be an effective way to combat staffing shortages.
Last week, Gov. Mike Parson announced he is recommending a $15 minimum wage and a 5.5 percent cost of living adjustment for all state employees, citing a need to address recruitment and retention issues. He is also proposing additional increases to address wage compression between pay grades that would occur with the new minimum pay rate.
Chris Moreland, communication director for the Office of Administration, said roughly 15,700 state employees will see wage increases if the proposed $15 minimum wage and increases to combat compression are approved by the Legislature and implemented.
The state has more than 41,000 employees.
The $15 minimum wage alone would impact approximately 11,000 state employees, Moreland said, which is about one in four state employees.
Most would be concentrated within the Missouri Department of Mental Health, which Moreland said employs about a third of the state's workforce earning minimum wage.
DMH, the Missouri Department of Corrections and circuit courts within the judicial branch will see the largest number of employee salary increases under the proposed minimum wage, Moreland said.
About 4,700 employees will see wage increases if the Legislature approves funding to combat wage compression.
Circuit courts and DMH will have the most employees getting raises from compression increases as the two departments together account for more than 50 percent of employees falling into that category.
In total, Parson's proposal would set new wages for more than 38 percent of the state workforce before the 5.5 percent cost of living adjustment is even considered.
Debra Walker, director of public and legislative affairs at DMH, said the department has more than 2,7000 employees who currently make less than $15 per hour, but not all of its minimum wage positions are currently filled.
"We do have a very high percentage in our department who make less than $15 and so to be able to make $15 an hour would really be a tremendous boost, especially if they continue, which many do, to work some overtime hours," Walker said.
Walker said she couldn't recall the last time DMH saw a pay increase of the magnitude proposed by Parson or one that specifically increases the per hour base pay of employees, but she's hopeful it can help the department turn the page on its staffing shortage.
DMH has severe shortages among its direct care support staff, who provide day-to-day care for department clients. Walker said it's difficult to keep those positions staffed when private companies offer better pay.
"A lot of these individuals that work for us, they love what they do, but they have to pay their bills," she said.
Walker said DMH is still working to determine how the pay increases would work out, but leadership is hopeful the move can help retain, and eventually recruit, staff.
The department is also continuing to communicate its need for staff funding to legislators and the governor's office, she said.
Karen Pojmann, communications director for the Department of Corrections, also said the proposal should help bring the department out of its hiring slump.
"Corrections has just under 10,000 positions statewide, and about 1,000 of those pay less than $15 per hour currently," Pojmann said. "So setting the minimum base pay at $15 per hour will make a big difference for our staff, particularly those in clerical and office support assistant jobs."
The department has had an ongoing staffing shortage for multiple years and has been taking steps to actively recruit and retain more employees. One of the primary approaches has been to increase wages.
Pojmann said in 2017 the annual starting pay for a DOC correctional officer I was $29,268 -- one of the lowest correctional officer salaries in the nation. In 2020, the state raised salaries for all DOC staff by 3-13 percent. Then in July, the state approved additional raises for correctional officers, sergeants, lieutenants and food service workers to the tune of 5.8-15 percent.
Since July, she said the department has been gaining more employees than it is losing, but it's still a slow process to attract necessary staff.
"In addition to more money attracting more people, I think the idea that the state is really investing in our staff makes a huge difference in people's decision to stay with the department," Pojmann said.
The current starting salary for a correctional officer is $36,000. If Parson's proposal is approved, the salary would increase to $37,980 -- a 30 percent increase over five years.
Pojmann said DOC staff have sent feedback about the proposed wage increases, stating it affirms their commitment to the department.
"That's huge -- it makes a big difference for many of them," Pojmann said. "Some have even shared stories about how they're expecting another child or their rent just increased, so this makes a big difference for those positions, certainly."
The governor's recommendation would apply to all full-time and part-time state employees, with some exceptions, Moreland said.
Certain elected and appointed officials, such as statewide officeholders, legislators and judges, would be excluded from the raises because the Missouri Citizens' Commission on Compensation for Elected Officials has to review compensation changes for elected officials to ensure they align with responsibilities.
Additionally, Moreland said the state can choose to exclude temporary, part-time hourly and intermittent employees from the 5.5 percent cost of living adjustment.
"Although many of these individuals would be impacted by the minimum wage increase to $15 an hour," he said.
The pay increases require approval from the General Assembly, which Parson hopes can be done in the first few weeks of the upcoming session so they can be implemented by Feb. 1, 2022.
The proposal has the support of House Budget Chairman Rep. Cody Smith, R-Carthage, and Senate Appropriations Chairman Dan Hegeman, R-Cosby.
In total, Parson's proposal would cost $91 million, $52 million of which would come from general revenue.
The governor also plans to introduce another 5.5 percent cost of living adjustment in his 2023 fiscal year pay plan proposal, which will cost $218 million -- $123 million of which would come from general revenue.