Longevity Pay in the States: Echo from the Past or Sound of the Future?

This article examines state government policies on longevity pay. Extra compensation for employees at the top of a salary range, or those who have worked in state government for a specified number of years, is used as an incentive for reducing turnover and as a reward for continuing years of service in 26 states. Given the disappointing results of pay-for-performance systems and a widely-predicted labor shortage in the late 1990's, the value of longevity pay may become more apparent to public sector managers in the future.